Life science stocks resumed their upward trajectory today with major ETFs (FBT,IBB,XBI) up over 2% and a green screen for the sector. Mid-cap biopharma stocks are strong once again. The IBB hit an August low of $187 on August 19 after a high in early August near $201.
Rayno Life Science stocks had two big winners today on deal news:
Amgen (AMGN $115.43) up 9.3% BOD approved a deal to buy Onyxx (ONXX $123.64) up 5.7% for $125 that was previously announced at the $130 level. The market likes the deal for Amgen because it diversifies their product mix and accelerates their top and bottom line.
Response Genetics (RGDX $2.51) was up 33% on a deal to acquire Pathwork Diagnostics, Inc. for $200k and 500k newly issues registered shares.The acquisition strengthens Response Genetics’ molecular diagnostic platform for analysis of tumor markers and will be accretive to sales going forward. Revenues for the previous quarter were $5.3M with an estimate of $22M for 2013.