Two Big Wins for Health Care Stocks Today
Today we scored two major wins for two health care stocks in our Wall St Renegade Portfolios.
1. From our Dueling Duo Portfolio: Forest Labs (FRX) will be acquired by Actavis PLC (ACT) in a cash-and-stock deal worth about $25 billion. The deal would create a combined company spanning both generic and branded drugs, including Forest’s Alzheimer’s treatment Namenda and the antidepressant Lexapro. Actavis will pay Forest shareholders $26.04 in cash and a portion of an Actavis share for each Forest share. The total, per-share price of $89.48 represents a premium of about 25 percent over Friday’s closing price. Shares soared 27% today.
2. Swing Trade Portfolio: Chelsea Therapeutic (CHTP). The FDA has approved Chelsea’s Northera drug for the treatment of neurogenic orthostatic hypotension (NOH), a rare disease which causes a debilitating drop in blood pressure upon standing.
Here are the FDA’s comments:
“The FDA is approving Northera under the accelerated approval program, which allows for approval of a drug to treat a serious disease based on clinical data showing that the drug has an effect on an intermediate clinical measure (in this case, short-term relief of dizziness) that is reasonably likely to predict the outcome of ultimate interest (relief of dizziness during chronic treatment). This program provides patient access to promising drugs while the company conducts post-approval clinical trials to verify the drug’s clinical benefit, which for this approval is a long-term effect on patient symptoms in NOH, a chronic disease.”
Here is a link to the press release:
The approved drug is now featured on its website as well at http://chelseatherapeutics.com
Shares have been temporarily halted. We will wait to see where this opens tomorrow but I am expecting a good day tomorrow for Chelsea shareholders!
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