Medgenics Stumbles and Tranzyme Looks for Options: Healthcare Recap
Here’s a quick Cheat Sheet of activity in the healthcare sector on Friday:
Medgenics (NYSEAMEX:MDGN): Current Price $5.22
Shares of Medgenics, a medical technology and therapeutics company, are off by more than 7 percent on Friday morning after it priced its underwritten public offering of 5.6 million shares and warrants at $5.25, a value approximately in line with the stock’s current price. The company is looking to raise $29.4 million from the deal.
Taro Pharmaceutical Industries (NYSE:TARO): Current Price $52.74
Although India-based Sun Pharmaceuticals has been on a buying spree of late, the company has called off its proposal to gain full control of its Israeli unit Taro Pharmaceutical Industries. Halting the deal, which priced Taro at $39.50 per share, was determined to be in the best interest for both companies’ shareholders because Taro was generating good cash flow on its own, ICICI Direct analyst Siddhant Khandekar told Reuters.
Tranzyme (NASDAQ:TZYM): Current Price: $0.618
Despite going public less than two years ago, Tranzyme announced on Friday that it may explore the possibility of a sale of the company, and shares spiked more than 13 percent on the news. Since the pharmaceutical company debuted on the Nasdaq in April 2011 at $4 per share, the company has struggled to remain profitable. Two trials of the company’s stomach paralysis drug have had to be ended mid-way through the study because they did not prove to be effective.
Don’t Miss: Have the Golden Arches Lost Their Shine?