Harriet Lefton

About the Author Harriet Lefton

Harriet originates from the UK where she worked as a journalist specializing in the metal markets. She graduated from the University of Cambridge before becoming a qualified UK lawyer.

Wednesday’s Movers: Plug Power Inc (PLUG) Skyrockets, Innocoll Holdings PLC (INNL) Soars, Neothetics Inc (NEOT) Surges


Plug Power Inc (NASDAQ:PLUG) shares are soaring by 77% in today’s trading following the news that the hydrogen fuel cell maker has signed a supply agreement and potential equity investment with ecommerce giant Amazon.com, Inc. (NASDAQ:AMZN). Plug estimates that the supply agreement could lead to $70 million of revenue for this year alone.

Plug will now supply its fuel cells and hydrogen technology for 11 of Amazon’s warehouses. Like rival Wal-mart, Amazon will now use the company’s GenKey technology to power industrial equipment such as forklifts to fulfil delivery orders faster and more cheaply.

In terms of equity, Amazon acquired the right to purchase up to 23% of Plug (55.2 million shares at an exercise price of $1.1893). The vesting of the warrants is dependent on Amazon making payments to Plug of at least $600 million over the course of the contract.

Plug also revealed that the two companies will also work together on a technology collaboration to expand the range of applications for Plug Power’s line of ProGen fuel cell engines.

“This agreement is a tremendous opportunity for Plug Power to further innovate and grow while helping to support the work Amazon does to pick, pack and ship customer orders,” said Andy Marsh, CEO of Plug Power.

Innocoll Holdings PLC (NASDAQ:INNL) shares are up 23% in Wednesday’s trading session on the news that healthcare investment fund Gurnet Point and Innocoll have now reached an agreed recommended offer. Under the terms of the agreement, Gurnet will buy Innocoll for $1.75 per share in cash, and up to $4.90 in cash from a contingent value right (CVR). According to Innocoll, the initial cash consideration of $1.75 represents a premium of approximately 120% to the closing price per Innocoll share on March 10.

During the offer period, Gurnet Point plans to provide a term loan of $10 million to give Innocoll additional resources needed for the continued development of its pipeline post-operation painkiller XARACOLL. The money will go towards the re-submission of the XARACOLL new drug application to the FDA. At the end of 2016 the FDA issued a Refuse-to-File letter halting further review of the company’s NDA without the submission of additional information.

The directors of Innocoll and major shareholders have given irrevocable undertakings to vote in favor of the deal. Innocoll says it dismissed the idea of raising equity/ debt to fund the over $100 million required for operations through 2019 on its own because of the potential for significant shareholder dilution and execution risk.

“We believe that the combined leadership of the two companies, supported by Gurnet Point’s financial strength, will better position Innocoll to pursue a successful filing and subsequent commercialization of XARACOLL,” said Jonathan Symonds, Chairperson of Innocoll.

Neothetics Inc (NASDAQ:NEOT) stock is rising by 27% in today’s trading after the company received a patent for its fat-reducing pipeline drug LIPO-202. The injectable drug is currently being investigated for its ability to reduce submental fat, otherwise known as double chins.

The patent from the United States Patent and Trademark Office (USPTO) will expire after the fourth quarter of 2033. This is now the eighth patent the company has received for LIPO-202 which tries to metabolize fat without damaging tissue.

“This patent further strengthens our comprehensive intellectual property portfolio protecting our lead clinical asset, LIPO-202,” said director Martha Demski.

 

 

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