What happened
Shares of Opko Health (OPK 2.46%) were jumping 13.5% higher as of 12:31 p.m. ET on Tuesday. The gain came after the company announced its first-quarter results following the market close on Monday.
Opko reported Q1 revenue of $329.2 million. Although this result reflected a sharp decline from the $545.2 million in revenue generated in the prior-year period, it beat the Zacks consensus estimate of close to $310 million.
The company posted a Q1 net loss of $55.4 million, or $0.08 per share -- in line with expectations. In the first quarter of 2021, Opko recorded earnings of $31.1 million, or $0.05 per share.
Opko also announced on Monday that it has acquired ModeX Therapeutics in an all-stock deal valued at $300 million. ModeX focuses on developing immune therapies for treating cancer and infectious diseases.
So what
Investors shrugged off Opko's revenue decline in the first quarter. It was widely expected that the company wouldn't make nearly as much in COVID-19 testing sales.
The acquisition of ModeX could be good for Opko over the long term. ModeX co-founders Elias Zerhouni and Gary Nabel joined Opko's board of directors as part of the transaction. Zerhouni will serve as Opko's President and board vice-chairman. Nabel is taking the position of Chief Innovation Officer. In addition, ModeX's lead independent director Alexis Borisy is joining Opko's board of directors.
Image source: Getty Images.
Now what
Opko was badly in need of a positive catalyst, with the healthcare stock down more than 40% year to date. The addition of new blood to its board could be just what the doctor ordered.
