Tercica, Inc. Stock Doubles on Acquisition News
Jun 5th, 2008 | By J. Christoph Amberger | Category: Stock Market InvestingBrisbane-based growth hormone company Tercica, Inc. (TRCA:NASDAQ) will be acquired by French drugmaker Ipsen SA in a stock deal valued at more than $400 million.
Ipsen had an option to buy up to 40% of Tercica through to a 2006 deal. It will buy the remaining 44.9 million outstanding shares for $9 each.
That price reflects a 104 percent premium on Wednesday’s cling price of $4.41 per share.
The stock hist $8.90 today before contracting in the afternoon. No volume spike indicating advance buying tipped the company’s hand.
We consider the speculative upside negligible at this point (at least compared to today’s run-up), at less than 10%.
Our momentum play Sequenom, Inc. (Nasdaq:SQNM), which had soared over 20% on news that its nucleic acid technology is able to detect Down’s syndrome, continued to pack on the shekels today, gaining an additional 20%.
Not bad for not working for a day!
Source: Tercica, Inc. Stock Doubles on Acquisition News
Advertisement
42% on Nymox Pharmaceutical Corp....
23% on Emergent BioSolutions Inc....
38% on the first half of our position in a U.S. refiner...
26.68% on Synta Pharmaceuticals...
How's your favorite financial newsletter working out for you?
Hot Stock Confidential = Damn Good Stocks.
Learn more...
Amberger began his career as a freelance contributor to Agora publications before emigrating from Germany to the United States in 1989, when he joined the editorial board of Taipan. In 1991, he took over as managing editor for the publication and assumed responsibility as group publisher four years later. In 2007 Christoph left Taipan and founded TodaysFinancialNews.com along with its premium publications: the highly successful stock Hot Stock Confidential, the options research service TFN Strategic Trader and, most recently, Penny Stock Confidential. In November of 2009, he welcomed Contrarian Profits to the Today's Financial News network.
