20-Year Pro Trader Reveals His "MoneyLine"
Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.
Micro-cap biotech Progenics Pharmaceuticals, Inc. (NASDAQ:PGNX) is advancing strongly following an announcement concerning a buyout deal.
The Deal
Lantheus Holdings Inc (NASDAQ:LNTH) and Progenics, which uses artificial intelligence to find, fight and follow cancer, announced an agreement under which the former will acquire the latter in an all-stock deal.
The agreement provides for Progenics shareholders receiving 0.2502 shares of Lantheus for each Progenics share they hold.
This exchange ratio, according to the release, values Progenics at a 35% premium to its 30-day volume-weighted average closing price, and a 21% premium to the closing price on Tuesday.
Lantheus is the parent company of Lantheus Medical Imaging, which manufactures diagnostic imaging agents and products.
The boards of both companies have approved the transaction.
Deal Logic
The combination of Lantheus and Progenics will form a company with a diversified diagnostic and therapeutics portfolio, the companies said in the release.
The two companies had pro forma combined revenues of $370.1 million for the 12-month period ended June 30, 2019.
The deal is premised on the logic of leveraging Lantheus' expertise in complex manufacturing, supply chain and commercial excellence, with Progenics' three leading FDA approved products, clinical pipeline and development capabilities.
"This combination unlocks additional value for stakeholders and stockholders alike through Lantheus' enhanced resources and R&D capabilities, proven commercial expertise and complementary portfolio of products," said Mark Baker, CEO of Progenics.
The deal is expected to close in the first quarter of 2020, subject to approval by Lantheus and Progenics stockholders, regulatory approvals, and customary closing conditions
Price Action
Progenics shares were up 9.80% to $5.44, while Lantheus shares were slipping 21.66% to $18.82.
20-Year Pro Trader Reveals His "MoneyLine"
Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!