Hi-Tech stock surging on Par Pharmaceutical buyout
Hi-Tech Pharmacal employees at the Amityville plant in 2010. Credit: Tom Decker, 2010
Share prices for Amityville-based drugmaker Hi-Tech Pharmacal have been surging through the trading day on news of a $1.9 billion buyout within the pharmaceutical industry.
Hi-Tech's stock is up over 11 percent Monday amid speculation about other companies in the same sector that may be acquired after the announcement of Par Pharmaceutical's buyout by private equity group TPG.
New Jersey-based Par announced Monday morning that it had agreed to be purchased by private equity group TPG for $1.9 billion. The terms meant that Par shareholders would receive $50 for each share of Par stock they held -- a 37 percent premium, according to a news release from the company.
Like Hi-Tech, Par also makes generic and branded drugs.
Hi-Tech's stock is currently trading around $32.65 per share, making its market capitalization about $420.96 million. Last week, Hi-Tech released its quarterly earnings, which reported lower profits for the company but increased sales revenue.
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