hgsi

hgsi


Us hot stocks: cit, Human Genome Sciences, Orexien

U.S. stocks were rising Monday as the Dow Jones Industrial Average climbed 0.6% to 8798, the S&P 500 rose 0.6% to 946 and the Nasdaq Composite gained 0.8% to 1901. Among the companies whose shares are actively trading in the session are Human Genome Sciences Inc. (HGSI), CIT Group Inc. (CIT) and Orexigen Threapeutics Inc. (OREX)

CIT Group ($1.26, +$0.56, +80.00%) was close to securing $3 billion in last-minute rescue financing from its bondholders Sunday in a deal that should keep the struggling lender out of bankruptcy court, people familiar with the matter told the Wall Street Journal.

Human Genome Sciences ($10.26, +$6.94, +209.04%) said its experimental drug Benlysta met the goals of a late-stage study in treating lupus, a notoriously hard-to-treat autoimmune disease that hasn't seen a new therapy in decades. The success surprised many analysts and investors who were expecting the drug to fail, as it did in an earlier mid-stage study. Citigroup believes the trial's success makes the company a takeover target of partner GlaxoSmithKline PLC (GSK, $37.57, +$1.21, +3.33%). The companies split Benlysta, which the firm sees having $1.3 billion in 2013 U.S. sales, and Human Genome has potential for royalties on two other Phase III drugs from Glaxo.

Orexigen Therapeutics ($6.75, +$1.06, +18.63%) said its Contrave drug showed strong results in three large late-stage studies in treating obesity, a potential multibillion-dollar market.

BMO Capital markets downgraded its investment rating on Tyson Foods Inc. (TSN, $11.44, -$1.20, -9.41%) to market perform from outperform. The firm said the company's "near-term stock upside has become somewhat limited as its stock price reflects improved chicken margins, the company's internal improvements, and lower feed prices." Meanwhile, Sanderson Farms Inc. (SAFM, $41.42, -$4.28, -9.37%) was cut to market perform from outperform by BMO Capital Markets. The firm said in a note to clients that it's cautious on further chicken margin expansion as chicken demand has weakened and the effects from hot weather in the South were more muted than expected.

Wabash National Corp. (WNC, $0.72, +$0.18, +33.31%) announced it was getting a $35 million investment from a division of private-equity firm Lincolnshire Management Inc., which created a new entity Trailer Investments LLC, to buy a series of preferred stocks and warrants for new common stock. Trailer Investments will also get to put five board members on Wabash's 12-person board. "This capital infusion will fortify our balance sheet, allowing us to put in place a capital structure that meets the needs of the Company during this economic downturn, including to obtain needed accommodations under our existing credit agreement," Chief Executive Dick Giromini said in a statement.

   Other Stocks In Focus:

California-based East West Bancorp Inc. (EWBC, $6.84, -$0.15, -2.15%) announced plans to sell at least 11 million shares as the company said it has completed a capital-raising effort that so far has generated $168.9 million.