Cowen Analyst Thinks Shire-Radius Health Merger Is Unlikely After Visit With CEO
- Shares of Radius Health Inc (NASDAQ: RDUS) spiked 20.72 percent on massive volume (3.8 million shares, versus the 1.1 million average) on Thursday.
- The surge seemed to have been triggered by rumors about a possible takeover by Shire PLC (ADR) (NASDAQ: SHPG).
- Shares of Shire rose 2.77 percent during the regular trading session, but fell almost 2 percent in after-hours Thursday.
Radius Health’s stock spiked on Thursday following rumors that say Shire intends to make a takeover offer of $90 per share for the company. It should be noted that this is a huge premium to Radius’ stock’s current valuation -- shares opened at $54.15 on Thursday.
So far, both Radius and Shire have declined to comment.
To shed some light on the subject, Benzinga contacted research firm Cowen & Co.
A prominent analyst at the firm, Dr. Eric Schmidt, revealed the following in a phone interview:
1. The Shire-Radius rumor seems unlikely. Shire has been subject of plenty of speculation regarding its M&A activity recently.
2. Radius Health’s President and CEO visited Cowen’s office on Thursday afternoon and did not say anything about the potential acquisition.
Radius stock does not yet appear to be reacting to the possibility that the latest rumor is false. Shares breached the $66 level in Thursday's afte-hours session after bottoming at $46.32 just one day earlier.
Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.
Image credit: Public Domain
Latest Ratings for RDUS
|May 2016||H.C. Wainwright||Initiates Coverage on||Buy|
|May 2016||Cowen & Co.||Assumes||Outperform|
|Mar 2016||Goldman Sachs||Initiates Coverage on||Neutral|
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