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Mid-Day Market Update: Akcea Therapeutics Jumps Following Acquisition News; Acasti Pharma Shares Plummet

Midway through trading Monday, the Dow traded down 0.94% to 28385.03 while the NASDAQ rose 0.23% to 11722.14. The S&P also fell, dropping 0.33% to 3,496.73.

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Midway through trading Monday, the Dow traded down 0.94% to 28385.03 while the NASDAQ rose 0.23% to 11722.14. The S&P also fell, dropping 0.33% to 3,496.73.

The U.S. has the highest number of coronavirus cases and deaths in the world, reporting a total of 5,997,620 cases with around 183,060 deaths. Brazil confirmed a total of over 3,862,310 COVID-19 cases with 120,820 deaths, while India reported a total of at least 3,621,240 confirmed cases and 64,460 deaths. In total, there were at least 25,248,590 cases of COVID-19 worldwide with over 846,870 deaths, according to data compiled by Johns Hopkins University.

Leading and Lagging Sectors

Consumer discretionary shares gained 0.5% on Monday. Meanwhile, top gainers in the sector included GameStop Corp. (NYSE:GMW), up 12%, and Tesla, Inc. (NASDAQ:TSLA), up 8%.

In trading on Monday, energy shares fell by 1.6%.

Top Headline

Nestle S.A. (OTC:NSRGY) subsidiary Nestle Health Sciences (NHSc) agreed to acquire biopharma companyAimmune Therapeutics, Inc. (NASDAQ:AIMT).

NHSc will purchase the stake in Aimmune through its 100% subsidiary Société des Produits Nestlé S.A. (SPN) at an enterprise value of $2.6 billion. All shares which are currently not owned by Nestle will be acquired at $34.50 per share through a cash tender offer.

 

Equities Trading UP

Aimmune Therapeutics, Inc. (NASDAQ:AIMT) shares shot up 172% to $34.22 after Nestle SA agreed to acquire the company at an enterprise value of $2.6 billion.

Shares of Akcea Therapeutics, Inc. (NASDAQ:AKCA) got a boost, shooting 60% to $18.21. Akcea and its majority owner Ionis Pharmaceuticals announced a definitive agreement under which Ionis will acquire the 24% stake in Akcea it does not already own for $18.15 per share — about 60% higher than Akcea's Friday closing price.

Genworth Financial, Inc. (NYSE:GNW) shares were also up, gaining 30% to $3.0850 following a media report that a potential buyer has financing.


Equities Trading DOWN

Shiloh Industries, Inc. (NASDAQ:SHLO) shares tumbled 63% to $0.4025 after the company entered into stock and asset purchase agreement with Grouper Holdings, LLC, a Subsidiary of MiddleGround Capital LLC. The company filed voluntary Chapter 11 petitions to facilitate the transaction.

Shares of Acasti Pharma Inc. (NASDAQ:ACST) were down 62% to $0.266 after the company announced the results from its Phase 3 TRILOGY 2 study of CaPre did not achieve statistical significance for the primary endpoint.

Regis Corporation (NYSE:RGS) was down, falling 20% to $7.28 after reporting a loss for the fourth quarter.

Commodities


In commodity news, oil traded up 0.4% to $43.14, while gold traded down 0.1% to $1,973.10.

Silver traded up 2.6% Monday to $28.32, while copper rose 1.3% to $3.0585.


Euro zone


European shares were lower today. The eurozone’s STOXX 600 fell 0.17%, the Spanish Ibex Index fell 1.66%, while Italy’s FTSE MIB Index declined 0.44%. Meanwhile, the German DAX 30 slipped 0.03% and French CAC 40 fell 0.35%


Economics

The Dallas Fed manufacturing business index increased to 8.00 in August, versus a prior reading of -3.00.