Among the companies with shares expected to actively trade in
Monday's session are MannKind Corp. (MNKD) and Philips NV
(PHG).
The Food and Drug Administration on Friday approved a powder
form of insulin, made by MannKind and known as Afrezza, which is
inhaled instead of injected, to help diabetics control their blood
sugar levels. MannKind shares jumped 11.8% to $11.18 premarket.
Philips said on Monday that it is spinning off its lighting
components business in the latest stage of the once-diversified
Dutch electronics group's plan to focus on a handful of
higher-margin activities. Philips said it would seek outside
investors for its Lumileds Lighting unit, which it will combine
with its automotive-lighting business. Shares rose 3.1% to $31.40
premarket.
TreeHouse Foods Inc. (THS) said that it agreed to buy
private-label trail-mix maker Flagstone Foods for $860 million in
cash. The move comes as TreeHouse has grown in recent quarters by
buying up companies and expanding its portfolio. Shares rose 5.1%
to $83.98 premarket.
Dicerna Pharmaceuticals Inc. (DRNA) announced the presentation
of preclinical data demonstrating the promise of the company's
therapeutic candidate for the treatment of primary hyperoxaluria
type 1, a rare inherited liver disorder that often results in
progressive and severe kidney damage. Shares jumped 13% to $21.35
premarket.
Flamel Technologies SA (FLML) said the U.S. Food and Drug
Administration has approved the company's new drug application for
Vazculep, an alpha-1 adrenergic receptor agonist indicated for the
treatment of clinically important hypotension resulting primarily
from vasodilation in the setting of anesthesia. American depositary
shares rose 5.1% to $14.78 in premarket trading.
Watchlist:
Bebe Stores Inc. (BEBE) is exiting its value-oriented 2b concept
and is cutting jobs as part of a cost-reduction program. The
women's apparel and accessories retailer said Friday that a
workforce reduction affected about 9% of its nonstore employees,
excluding the distribution center, and less than 1% of its store
operations team.
Darden Restaurants Inc. (DRI) said Monday that it has launched a
tender offer for as much as $600 million of its debt.
Consolidated Communications Holdings Inc. (CNSL) has agreed to
acquire broadband communications provider Enventis Corp. (ENVE) in
an all-stock deal that values Enventis at about $228 million. The
deal values Enventis at about $16.50 a share, a 17% premium to
Friday's close.
HNI Corp. (HNI) said it plans to close its Midwest Folding
Products facility as part of an ongoing cost-cutting effort. The
Iowa office-furniture maker said it would consolidate the Chicago
production into an existing education-furniture manufacturing
facility and estimated it would save $2.3 million a year starting
in 2015.
Kraton Performance Polymers Inc.'s (KRA) board is no longer
pushing for the company's stockholders to approve its plans to
combine with LCY Chemical Corp.'s styrenic block copolymer
operations.
Martin Marietta Materials Inc. (MLM) will replace United States
Steel Corp. (X) in the Standard and Poor's 500-stock index after
the market closes July 1, according to S&P.
PPG Industries Inc. (PPG) agreed to acquire architectural and
industrial coatings company Consorcio Comex SA for $2.3 billion.
PPG Chief Executive Charles E. Bunch said the acquisition is
complementary to the paint and coatings maker's business.
Stryker Corp. (SYK) said Monday that it will acquire an ankle
replacement system and other assets from Small Bone Innovations
Inc. for up to $375 million in cash. The move aims to expand
Stryker's focus on orthopedics, the company said.
Barron's Watchlist:
ResMed Inc. (RMD) seems like a solid growth stock, but March
sales reportedly were aided by a quarter-end deal with a large
customer, while profit was boosted by noncash accruals, according
to Barron's. The strains evident in march-quarter results may grow,
if Medicare and other insurers decide to pay a bundled price for
continuous positive airway pressure treatments. Shares slipped 3.8%
to $50.49 in recent trading.
International Paper Co. (IP) is ramping up payouts and stock
buybacks, according to Barron's, which called the company a cash
machine. With the debt from recent acquisitions now paid down to a
comfortable level, the company is turning its attentions to
returning more capital to shareholders. The company's shares have
been under pressure from unusual factors, from a weak ruble to bad
weather, but the company looks poised to regain momentum as it
continues to improve operations, expand margins, and use its
enormous free cash flow for dividend increases and share buybacks.
Some on Wall Street see the shares rising as high as $66 to $70 a
share-as much as 43% higher-in the next 12 months, as strong demand
leads to tighter supplies in the containerboard market, eventually
leading to rising prices and substantial earnings growth.
With a free cash flow yield of 14%, NetApp Inc. (NTAP) is dirt
cheap, according to Barron's. NetApp shares have fallen from $50
three years ago to $35.48 recently, in part because revenue has
decelerated fast enough to set off air bags: from 22% growth in
fiscal 2012 to a projected decline of 0.4% for its current fiscal
year, which runs through April. But profits remain rich, and
there's reason to believe NetApp will soon return to revenue
growth. NetApp shares could rise more than 25% to $45 in the coming
year. In a takeover they could fetch $50.
Write to Anna Prior at anna.prior@wsj.com
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