Monday, December 21st, 2009
Pre-Market Round-Up for December 21, 2009
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Chattem Inc. (NASDAQ:CHTT), Incyte Corporation (NASDAQ:INCY), and Athersys, Inc. (NASDAQ:ATHX) are three story stocks to watch as the market appears set for a higher open.
Story Stocks to Watch
- Chattem Inc. (CHTT) – Shares of the leading marketer of OTC heathcare products rose sharply higher in premarket trading after Sanofi-aventis (SNY) offered to acquire the company for $93.50 per share in cash. The $1.9 billion deal will create the world’s fifth largest consumer healthcare company measured by product revenues. Sanofi-aventis also announced that it would seek to convert its Allegra product into an OTC product.
- Incyte Corporation (INCY) – Shares of the drug discovery and development company rose sharply higher after agreeing to license its oral JAK1/JAK2 inhibitor, INCB28050, and certain follow on compounds, for inflammatory and autoimmune diseases, to Eli Lilly and Company (LLY). Under the terms of the agreement, Eli Lilly will pay $90 million upfront and up to $665 million in additional fees for the rights.
- Athersys, Inc. (ATHX) – Shares of the clinical stage biopharmaceutical company rose sharply higher in premarket trading after entering into an agreement for Pfizer Inc. (PFE) to develop and commercialize its MultiStem drug for the treatment of Inflammatory Bowel Disease. The investigational stem cell therapy is currently in development by Athersys for several other conditions, including bone marrow transplant support.
Market Preview
U.S. markets are set to open marginally higher as investors eye improvements in the world economy. The Dow Jones Industrial Average rose 38 points to 10,309, the S&P 500 rose 5.8 points to 1,103.50, and the Nasdaq rose 11.50 points to 1,818.50, with a little more than an hour to go before U.S. markets open.
The U.S. dollar gave up most of its overnight gains against the euro, while attacks on production facilities in Nigeria and Iraq helped to lift oil futures 0.88% to $74.40. Meanwhile, gold prices rose $5.40, or 0.49%, to $1,116.90 per ounce and silver prices rose $0.07, or 0.4%, to $17.39 per ounce in premarket trading.
Overseas market also moved largely higher during the session. In Europe, Britain’s FTSE 100 moved up 64.12, or 1.23%, to 5,260.93, Germany’s DAX moved up 47.01, or 0.8%, to 5,878.22, and France’s CAC 40 moved up 40.07, or 1.06%, to 3,834.51. In Asia, Hong Kong’s Hang Seng moved down 227.78, or 1.08%, to 20,948.10 and Japan’s Nikkei moved up 41.42, or 0.41%, to 10,183.47.
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-- Written by Simon Monger
