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Why Bausch Health Companies, Aquantia, and Athenex Jumped Today

By Dan Caplinger – May 6, 2019 at 4:31PM

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Despite pressure on the broader market, these stocks bucked the downtrend.

Monday was tough for the stock market, although it wasn't nearly as bad as it seemed it might be before the beginning of the trading session. Threats from the White House for more tariffs against China initially led to a plunge of almost 500 points in futures contracts tied to the Dow Jones Industrial Average, but over the course of the day, investors seemed to become more comfortable with the state of affairs on the trade front and for the broader economy. Some favorable news from certain companies also helped restore a more even-keeled mood. Bausch Health Companies (BHC), Aquantia (AQ), and Athenex (ATNX) were among the top performers. Here's why they did so well.

Bausch sees a better future

Shares of Bausch Health Companies climbed nearly 9% after the pharmaceutical specialist that it started out 2019 on a strong footing. Bausch's first-quarter financial results included just a 1% rise in revenue, but adjusted net income jumped 15% from year-ago levels. The company said that it continued to make progress with its pipeline of treatments, with double-digit percentage sales growth for its Xifaxan gastrointestinal drug and successful acquisitions and approvals of other promising drugs. Bausch also boosted its guidance for the full 2019 year, adding $50 million to both its revenue and pre-tax operating profit projections. That's a far cry from the near-fatal hit the company took under its previous name of Valeant Pharmaceuticals, and investors are pleased that things are looking up for Bausch.

Gray building with green trim and white Bausch & Lomb lettering.

Bausch & Lomb is part of Bausch Health Companies. Image source: Bausch.

Aquantia gets a buyout bid

Aquantia's stock soared 35.5% after the Ethernet connectivity specialist received an acquisition bid. Marvell Technology (MRVL) said that it would pay $452 million for Aquantia, giving investors $13.25 per share in cash for their Aquantia stock. From Marvell's perspective, buying Aquantia helps to flesh out its already impressive offerings in the Ethernet and connectivity space, including in-car networking solutions that have become increasingly vital as entertainment systems have become essential components in vehicle design. For Aquantia, though, the purchase is bittersweet, as the $13.25-per-share price only brings the stock back to the levels it enjoyed near its peak last summer.

Athenex gets a $100 million boost

Finally, shares of Athenex jumped 28%. The biopharmaceutical company reported that it has received a capital infusion of $100 million through a private placement of common stock with three institutional investors. The investors will purchase 10 million shares at $10 per share, with the closing expected to occur on Tuesday. Athenex CEO Johnson Lau said that the proceeds "will position us well to further advance our Phase 3 clinical programs for [metastatic breast cancer treatment] Oraxol and KX2-391 ointment [for actinic keratosis] and support our pre-launch and commercialization efforts." Already, the stock price advance has given those investors $30 million in paper profits, and more could come if Athenex can remain successful with its pipeline of treatments.

Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool recommends Bausch Health Companies. The Motley Fool has a disclosure policy.

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