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Monday was strong on Wall Street as stock indexes generally ended up higher. An extension of the US-China trade talks appears to be a success for a longer-term agreement, and an increase in M & A activity is noted for several key companies. Danaher (NYSE: DHR), CRISPR Therapeutics (NASDAQ: CRSP), and Clementia Pharmaceuticals (NASDAQ: CMTA) were among the most successful. Here's why they did so well.
Danaher takes a big advantage
Danaher shares rose 8.5% after health and health sciences technology company agreed to donate $ 21.4 billion to acquire the unit's biopharmaceutical business GE Life Sciences General Electric. Danaher said the deal is expected to increase the company's overall adjusted earnings in the first year following the closing of the acquisition, and its CEO, Thomas Joyce, believes this purchase will "advance our strategy. of growth and innovation in an important and very attractive life sciences market ". In addition, Danaher has stated that he plans to proceed with an IPO of his dental products business, but that the negative obligations that his bond rating might have by making a large cash transaction, Danaher's future strategy is not completely frozen.
Source of the image: Getty Images.
CRISPR reaches a milestone
The CRISPR Therapeutics share jumped 25% as a result of the company's latest business update and the release of its fourth quarter financial report. The biopharmaceutical specialist does not yet realize a substantial business figure, but its cash position has almost doubled compared to last year. This gives CRISPR a lot of money to develop treatments, and with the announcement that the first patient in a trial using therapy using the company's technology has enrolled, investors are more optimistic than never that CRISPR will make a breakthrough leading to a long-term blockbuster drug.
Clementia sails for the redemption
Finally, the shares of Clementia Pharmaceuticals soared by more than 74%. Canadian biotech company receives takeover bid from French biopharma Ipsen this could be worth up to $ 1.31 billion. As part of this agreement, Clementia shareholders will receive $ 25 per share in cash, plus an additional value right of up to an additional $ 6 if the US Food and Drug Administration accepts a palovarotene treatment of Clementia for the treatment of rare bone diseases. This transaction provides a quick shareholder benefit, but it also eliminates the potential benefit they could have seen had Clementia remained independent until approved by the FDA.
Dan Caplinger has no position in the mentioned actions. Motley Fool owns CRISPR Therapeutics shares. Motley Fool has a disclosure policy.
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