Thursday, September 2, 2010

Day Trader's Alert: OREX, BKC, DTG

Orexigen Therapeutics, Inc. (NASDAQ: OREX) announced Thursday that it has  entered into an exclusive partnership with Takeda Pharmaceutical Company Limited to develop and commercialize Contrave, Orexigen's investigational drug for the treatment of obesity, in the United States, Canada and Mexico. Under the terms of the agreement, Orexigen will receive an upfront cash payment of $50 million from Takeda, and Takeda will obtain an exclusive marketing right from Orexigen in the United States, Mexico and Canada while Orexigen retains the right to co-promote with Takeda in the United States. Orexigen will be eligible to receive payments of over $1 billion upon achieving certain regulatory and sales-based milestones. Assuming Contrave is commercialized, Takeda will pay tiered double-digit royalty payments on net sales in the Territory. Shares of the company soared as much as 25% in pre-market trading.

Shares of Burger King Holdings Inc. (NYSE: BKC) shot up as much as 20% in pre-market trading after CNBC's David Faber said that the fast-food restaurant will be bought out by private equity firm 3G at $24 a share.

Avis Budget Group, Inc. (NYSE: CAR) on Thursday boosted the cash portion of its offer for Dollar Thrifty Automotive Group Inc. (NYSE: DTG) from $39.25 to $40.75 per share. The revised offer of $40.75 in cash and 0.6543 shares of Avis Budget stock, represents a premium of more than 22% over the Hertz Global Holdings, Inc. (NYSE: HTZ) offer. Shares of Dollar Thrifty soared as much as 1% in pre-market trading.

Full Disclosure: None.

Related Posts with Thumbnails

Wikinvest Wire