Recs

2

Why MAP Pharmaceuticals Shares Skyrocketed

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of MAP Pharmaceuticals (UNKNOWN: MAPP.DL  ) soared 59% today after specialty drug giant Allergan (NYSE: AGN.DL  ) agreed to acquire the development stage drug developer for $958 million.

So what: The all-cash deal values MAP at $25 per share and represents a whopping 60% premium to its closing price on Tuesday. Allergan is making the move to increase its presence in the treatment of adult migraines, but judging by its own stock's small drop today, Mr. Market isn't thrilled with the price management is paying to do it.

Now what: Allergan expects the deal to dilute its 2013 EPS by about $0.07 and be accretive to earnings by the second half of 2014. "We plan to capitalize on this depth of expertise in Neurology as we continue the global development of LEVADEX as a potential acute treatment for migraine that is complementary to BOTOX and use MAP's proprietary drug particle and inhalation technologies to generate new pipeline opportunities," said Allergan CEO David Pyott. So while MAP shares are likely all popped out that this point, Allergan's newly bolstered growth prospects might help drive outsized gains over time.

Interested in more info MAP? Add it to your watchlist.

How about Allergan? Add it to your watchlist.


Read/Post Comments (1) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On January 24, 2013, at 9:58 AM, pjreiter22 wrote:

    Mr. Market isn't thrilled? I saw little or no impact to Allergan's stock price.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2211791, ~/Articles/ArticleHandler.aspx, 8/29/2015 10:03:34 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Brian Pacampara
TMFEZMagic

I take a look at big 10% moves, as well as stock-shaking analyst calls, on a daily basis for The Fool. While I don't believe in active trading, closely monitoring Mr. Market's mood swings can help identify long-term opportunities.

Today's Market

updated 1 day ago Sponsored by:
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 1.21 0.06%
NASD 4,828.33 15.62 0.32%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

12/31/1969 7:00 PM
AGN.DL $0.00 Down +0.00 +0.00%
Allergan, Inc. CAPS Rating: ****
MAPP.DL $0.00 Down +0.00 +0.00%
MAP Pharmaceutical… CAPS Rating: *