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growthequities
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Marcus-Goetz Laun Vice President at Chardan Capital Markets Greater New York City Area Investment Banking Previous Knight Equity Markets, HYPE North America Inc., Brean Murray & Co. Inc Education MBA, Finance at Columbia Business School
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Growth Equities
  • Linden Capital Buys Young Innovations Inc; Geron Corporations Stops Testing Key Cancer Drug 0 comments
    Dec 4, 2012 5:39 PM

    Making acquisition headlines on Tuesday was Earth City based firm, Young Innovations Inc (NASDAQ:YDNT). The dental supplies manufacturer is going to be bought by Chicago-based private equity firm Linden Capital Partners for $314 million.

    Shareholders of Young Innovations will receive $39.50 per share in cash, which gives a 12.5 percent premium to the 30-day average closing stock price. Importantly, Young Innovations intends to keep looking for bidders willing to offer a higher price than Linden Capital. For more details, click here.

    (click to enlarge)

    Among the biopharmaceuticals, Galena Biopharma Inc.(NASDAQ:GALE) informed the market on Tuesday that it had reached an agreement with Teva Pharmaceutical Industries Ltd., one of the world's largest drugmakers, under which the Teva would develop and market its cancer treatment NeuVax in Israel. Galena would receive significant royalty payments as per the deal, many terms of which were left undisclosed. Read more on it here.

    Investors responded jubilantly, pulling the stock up to $2.28, up nearly 12%, on volumes of 7 million shares.

    Galena Biopharma engages in developing and commercializing cancer therapeutics using peptide-based immunotherapy products, including its lead product candidate NeuVax, which is in Phase 3 PRESENT trial for the treatment of various cancers.

    Not all biopharma companies were having it hunky-dory though. Geron Corporation (NASDAQ:GERN) had a horrific day in trade as the drug-maker slipped nearly 25% in trade. The stock was hovering at $1.11, down $0.37 on a volume of half a million shares.

    Earlier on Monday, Geron had said that it stopped testing of GRN1005. The drug was to treat cancers that have metastasized to the brain. The company said it will focus its efforts on another cancer drug, Imetelstat. Interestingly, Imetelstat has recently failed in some clinical trials. Imetelstat is a telomerase inhibitor, which is in Phase II clinical trials for the treatment of metastatic breast cancer, advanced non-small cell lung cancer, thrombocythemia, and myeloma.

    The Menlo Park based company is also reducing its staff from 107 to 64, to cut its annual employee expenditure by half. Follow the story here.

    In the logistics space, Pacer International Inc (NASDAQ:PACR) went up more than 11% to trade at $3.72. Pacer International Inc provides asset-light transportation and logistics services. It operates in two segments, Intermodal and Logistics. The market might have been rewarding it for the current trade boom in Mexico from which several US companies are reaping rich rewards. Pacer has a multiyear agreement to manage and provide transport for Union Pacific, as well as container and chassis management in Mexico.

    Exa Corporation traded more than 22% down after receiving a host of downgrades from brokerages. The stock was quoted at $9.29, down $2.62. The company reported disappointing Q3 results on Monday in which the reported revenue was lower than the low end of their guidance. Read the result here. The results led to the downgrades.

    Exa Corporation develops, sells, and supports simulation software and services for vehicle manufacturers. It offers PowerFLOW software solution suite for simulating complex fluid flow problems.

    Growth Equities (http://s.tt/1vS1X)

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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