Premarket Movers; Alnylam Scores
09.07.2007 13:22
Computers
- Source: Forbes
Alnylam Pharmaceuticals Inc. licensed some cutting edge technology to a major drug developer and its shares shot up in premarket trading Monday. The Cambridge, Mass., biotechnology company struck a deal that could be worth up to $1 billion with Swiss drug maker Roche. The pact focuses on Alnylam's work in RNAi therapeutics, which aims to identify the gene at the root of a condition or disease and silence it, thereby switching off the condition. Terms were not disclosed. The non-exclusive license arrangement means Alnylam can license its technology to other companies as well. Shares of Alnylam surged $8.10, or 53.2 percent, in premarket electronic trading to $23.30. The stock closed Friday at $15.20. Premarket indicators pointed to a higher opening on Wall Street. Also gaining in the early going were shares of FedEx Corp. (nyse: FDX - news - people ), after it was mentioned as a potential buyout candidate in Saturday's edition of Barron's. The business weekly, in a story about a maturing buyout cycle, said the Memphis, Tenn., company, with a $34 billion market cap and $1 billion in debt, could be "in the zone of larger deals favored by cash-sodden LBO firms." While expensive, a FedEx takeout would be easier to finance than other deals for companies without so many hard assets, it said. In addition, its Kinko's retail unit may be attractive to buyers who seek to turn around ailing companies, the story said. "None of this suggests that a deal is imminent or even likely," the report continued. "And, for certain, Fedex founder, Chairman and CEO Fred Smith has given no public indication that he would be amenable to going private." Those caveats didn't stop traders from bidding up the shares premarket. FedEx was up $2.56, or 2.3 percent, to $113.40 premarket, from their close at $110.84. Shares of First Solar Inc. gained after the solar energy power module maker reported five deals with a combined value of almost $1.3 billion through 2012 and also said it will expand production capacity. Banc of America Securities analyst Eric Brown said the deals and the expansion will offset lower prices and result in higher earnings. He maintained a "Buy" rating on the shares and raised his price target on the stock to $115, meaning he expects shares to rise 19.4 percent in the next 12 months. Shares of the Phoenix company have traded between $23.50 and $98.87 since the company went public in November at $20 per share. In premarket trading, the stock gained $8.46, or 8.8 percent, to $104.75, from their close at $96.29 Friday. On the downside, shares of Lexmark International (nyse: LXK - news - people ) plunged after the computer printer maker cut its earnings forecast for the second quarter. The Lexington, Ky., company slashed its outlook to well below Wall Street expectations, citing lower revenue than expected on printer supplies and lower prices because of competition. Those and other factors could also hurt the third quarter as well, Lexmark said. Shares plummeted $5.66, or 11.5 percent, to $43.74 in early trading, from their close at $49.40 Friday. Copyright 2007 Associated Press. All rights reserved. This material may not be published broadcast, rewritten, or redistributed
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