Watch stocks you care about
The single, easiest way to keep track of all the stocks that matter...
Your own personalized stock watchlist!
It's a 100% FREE Motley Fool service...
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 DepoMed (NASDAQ: DEPO ) , a specialty pharmaceutical company focused on developing therapies to treat central nervous system disorders, popped by as much as 13% after announcing plans to acquire migraine medicine Cambia from Nautilus Neurosciences.
So what: Under the terms of the deal, DepoMed will pay Nautilus $48.7 million to acquire the U.S. rights to the drug and could be on the line for an addition $5 million based on whether annual net sales milestones are met. According to DepoMed's press release, Cambia is the only non-steroidal anti-inflammatory drug approved for the indication of treating migraines, with drug itself seeing revenue grow in excess of 30% last quarter.
Now what: It's not often that Wall Street rewards an acquisition, but the move by DepoMed to add a rapidly growing drug that'll be protected from generic competition for another 10 years to its product portfolio appears to make a lot of sense. The next step, obviously, is to see DepoMed make strides toward turning a profit in 2014. Until I see that black ink, though, I'd rather just be a casual observer from the sidelines.
Here's a stock you should be watching for 2014!
There's a huge difference between a good stock, and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report: "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.