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Rodman & Renshaw Downgrades Nanosphere Following Luminex Acquisition

Rodman & Renshaw Downgrades Nanosphere Following Luminex Acquisition
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Rodman & Renshaw's Raghuram Selvaraju downgraded Nanosphere, Inc. (NASDAQ: NSPH) from Buy to Neutral, while decreasing the price target from $2.00 to $1.35. The rating change came after Luminex Corporation (NASDAQ: LMNX) announced it was acquiring Nanosphere for $1.35 a share in an all-cash transaction.

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Luminex plans to purchase all shares of Nanosphere within 15 business days as of Tuesday and will pay off approximately $25 million of Nanosphere's debt outstanding as of March 31, 2016. Due to Luminex being "one of the relatively few entities with significant direct complementary to Nanosphere's technology platforms," the analyst does not see any probable competing bids in the future.

Nanosphere closed Tuesday trading at $1.31, four cents from Luminex's purchase offer of $1.35.

Latest Ratings for NSPH

May 2016Rodman & RenshawDowngradesBuyNeutral
Mar 2016Rodman & RenshawInitiates Coverage onBuy
Nov 2015PiperJaffrayMaintainsNeutral

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