dkishore
11-12-2007, 06:51 AM
Takeover talk lifts Prime Focus
The stock of Prime Focus, the digital post-production and special effects company, zoomed on Monday on talk that the company is eyeing FilmLab, an unlisted processing company operating out of suburban Mumbai. On a day when frontline shares were struggling for direction, Prime Focus gained 7% to close at Rs 1,157.
When contacted, Prime Focus’ chief financial officer Nishant Fadia dismissed the market talk surrounding the stock as “hearsay,” and said his company only shares a “working relationship” with FilmLab and no such acquisition is on the cards.
However analysts feel that the move could be beneficial for the company as processing is one of the last steps in the process of post production, and an entry into the processing segment would complement the company’s existing core operations.
Meanwhile, Prime Focus on Monday announced that the initial conversion price for its $55 million FCCBs had been set at Rs 1,386.70 per share, representing a premium of almost 30% over the closing share price on BSE.
Sun Pharma may pop the settlement pill
Investors are expecting Sun Pharma to go for an out-of-court settlement with Wyeth for launching the generic form of the latter’s ulcer drug Protonix soon. In June, Wyeth had asked a US court to stop Sun Pharma from launching generic Protonix. However, Sun received the US FDA approval to launch the generic. If an out-of-court settlement happens, analysts believe the generic could be a big boost to Sun’s revenues.
An analyst tracking the company said the launch of Protonix, one of Wyeth’s best-selling drug with $1.8 billion in revenue, would add Rs 15-16 per share to Sun’s annual earnings per share. Merrill Lynch estimates the company’s earnings per share for 2007-08 at Rs 42.66 and for 2008-09 at Rs 59.01. The stock closed at Rs 1,112 on Monday, flat over the previous close. Over the past one month, the shares have risen close to 7%.
The stock of Prime Focus, the digital post-production and special effects company, zoomed on Monday on talk that the company is eyeing FilmLab, an unlisted processing company operating out of suburban Mumbai. On a day when frontline shares were struggling for direction, Prime Focus gained 7% to close at Rs 1,157.
When contacted, Prime Focus’ chief financial officer Nishant Fadia dismissed the market talk surrounding the stock as “hearsay,” and said his company only shares a “working relationship” with FilmLab and no such acquisition is on the cards.
However analysts feel that the move could be beneficial for the company as processing is one of the last steps in the process of post production, and an entry into the processing segment would complement the company’s existing core operations.
Meanwhile, Prime Focus on Monday announced that the initial conversion price for its $55 million FCCBs had been set at Rs 1,386.70 per share, representing a premium of almost 30% over the closing share price on BSE.
Sun Pharma may pop the settlement pill
Investors are expecting Sun Pharma to go for an out-of-court settlement with Wyeth for launching the generic form of the latter’s ulcer drug Protonix soon. In June, Wyeth had asked a US court to stop Sun Pharma from launching generic Protonix. However, Sun received the US FDA approval to launch the generic. If an out-of-court settlement happens, analysts believe the generic could be a big boost to Sun’s revenues.
An analyst tracking the company said the launch of Protonix, one of Wyeth’s best-selling drug with $1.8 billion in revenue, would add Rs 15-16 per share to Sun’s annual earnings per share. Merrill Lynch estimates the company’s earnings per share for 2007-08 at Rs 42.66 and for 2008-09 at Rs 59.01. The stock closed at Rs 1,112 on Monday, flat over the previous close. Over the past one month, the shares have risen close to 7%.