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Out of the Gate: APP Pharmaceuticals shares spike

By Associated Press
July 7, 2008 | Comments (0)

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Shares of APP Pharmaceuticals Inc. skyrocketed Monday after Germany's Fresenius SE said it will buy the U.S. generic drug maker for $3.7 billion in cash.

The stock gained $5.70, or 32 percent, to $23.52 after the opening bell.

The deal will boost the health care company's North American opportunities to market drugs administered intravenously. The company will pay $23 per share for Schamburg, Ill.-based APP Pharmaceuticals.

Additionally, Fresenius will pay a registered and tradable contingent value right that could result in as much as $6 a share, provided APP reaches adjusted pretax profit targets from 2008 to 2010, the companies said in a statement.

So far this year, shares of APP Pharmaceuticals have jumped 74 percent.

Fresenius shares lost 78 cents to $56.14.

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