Why Cambrex Corporation Soared

By Dave Williamson – Jan 28, 2014 at 9:26PM

NYSE: CBM

Cambrex

Here's why Cambrex won big on the market today.

On Tuesday's edition of Market Checkup, Motley Fool health-care analyst David Williamson takes a look at the biggest winners and losers in health care stocks today.

Shares of Cambrex Corporation (CBM) soared Tuesday, up 15% for the day. News on Monday broke that the company recently passed an FDA manufacturing inspection for its plant in Iowa, and today the stock was upgraded to "overweight" by a company called First Analysis, because of increased confidence that the company would close a large API manufacturing deal with Gilead (GILD -0.49%) for its hepatitis C drug Sovaldi. There is also the belief that Gilead would give Cambrex preference for future drug opportunities.

In this segment, David discusses why this deal could be a huge deal for the company, and why, when he started digging into Cambrex, he liked what he saw.

David Williamson has no position in any stocks mentioned. The Motley Fool recommends Gilead Sciences. 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.