APO - Why Achillion Pharmaceuticals Tech Data and First Majestic Silver Jumped Today
Wednesday was a downbeat day on Wall Street, as investors continued to waver in their confidence about the likely direction of trade negotiations between the U.S. and China. After feeling more optimistic earlier in the week, market participants focused on some of the potential problems if trade talks go bad, along with some earnings-related concerns. However, some stocks managed to climb, with merger and acquisition activity coming to the forefront for several companies. Achillion Pharmaceuticals (NASDAQ: ACHN), Tech Data (NASDAQ: TECD), and First Majestic Silver (NYSE: AG) were among the top performers. Here's why they did so well.
Shares of Achillion Pharmaceuticals skyrocketed 72% after the clinical-stage biotech got a buyout bid from Alexion Pharmaceuticals (NASDAQ: ALXN). Under the terms of the deal, Achillion shareholders will receive $6.30 per share in cash for their stock, but they'll also get contingent value rights that could be worth up to an additional $2 per share. In order to get the maximum payout, Achillion would have to have its lead drug candidate, danicopan, receive approval from the U.S. Food and Drug Administration, and its ACH-5228 treatment would have to make it to phase 3 trials. Achillion CEO Joe Truitt was pleased with getting Alexion on its side, and the combined company will have a rich pipeline of prospective new treatments down the road.
Image source: Achillion Pharmaceuticals.