Why ANI Pharmaceuticals Inc. Stock Roared Higher

ANI goes shopping and investors like what's in the bag. Find out how ANI just improved its chances of long-term success.

Jul 1, 2014 at 2:58PM

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 ANI Pharmaceuticals (NASDAQ:ANIP), a specialty developer of branded and generic drugs, roared higher by as much as 11% after the company announced the acquisition of the drug Lithobid from Noven Therapeutics.

So what: According to ANI Pharmaceuticals' midday press release, total consideration paid for the extended release tablets, which treat manic episodes of bipolar disorder, was $12 million. This includes an $11 million up-front payment from ANI to Noven, as well as $1 million in future sales milestone payments. ANI anticipates launching Lithobid this month under its own label, with the purchase expected to annually add $4 million in revenue and $3.9 million in adjusted EBITDA. As ANI's president and CEO pointed out, "Prior to the acquisition, ANI contract manufactured Lithobid, which allows us to immediately launch ANI-labeled product."

Now what: ANI said the magic words in its press release: "immediately accretive" to earnings. ANI has largely developed its generic portfolio through internal discoveries, but it made waves recently with two mature drug purchases, including today's buy. In December, it acquired 31 generic drugs from Teva Pharmaceutical for $12.5 million and a percentage of gross profits from future product sales. ANI's ability to supplement its high-margin branded portfolio with both internal and external generic drugs makes me believe that it has the potential to head even higher over the long term.

ANI may have soared today, but the enormous potential from this revolutionary product could leave ANI in the dust! 
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Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.

The Motley Fool recommends Teva Pharmaceutical. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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