US stocks dropped on Tuesday as fresh concerns about the health of the European banking system dampened investor sentiment.
Below we highlight few companies whose shares are actively trading in Tuesday's session.
Shares of Lincoln National Corp (NYSE: LNC) slumped more than 5% on Tuesday after the U.S. Treasury Department said that it intends to sell warrant positions in the insurer over the next several weeks. The government received the warrants when it made investments in the company under the Capital Purchase Program.
Somaxon Pharmaceuticals, Inc. (NASDAQ: SOMX) jumped more than 6% after it announced that Silenor is now commercially available by prescription in the United States. The company said that it has implemented a wholesale and retail stocking program to disseminate Silenor 3 mg and 6 mg dosepacks to pharmacies across the United States. Silenor is indicated for the treatment of insomnia characterized by difficulty with sleep maintenance.
Canada's Biovail Corporation (NYSE: BVF), which is planning to merge with US-based Pharmaceuticals International, said Tuesday that it would trim about 25 percent of the combined company's U.S. and Canadian workforce as part of the integration plans. "Over $300 million of cost synergies have been identified and we expect to realize well north of $200 million in 2011," Valeant Chief Executive J. Michael Pearson said in a letter to the employees. "The rest will be captured in 2012," Pearson, who will be heading the new company, added. The companies have a combined workforce of about 4,400. Shares of Biovail Corporation surged as much 9% in Tuesday morning trading.
China Sky One Medical, Inc. (NASDAQ: CSKI) plunged more than 28% on Tuesday, a trading day after the company announced that its fiscal year 2010 revenue and adjusted net income, excluding the impact of derivative warrant liabilities, are expected to be lower than its previous financial guidance as a result of the termination of several major distributor relationships. The company cut its 2010 revenue guidance from a prior range of $160 million and $164 million to between $128 million and $136 million. The company also has reduced its 2010 adjusted net income guidance, excluding the impact of derivative warrant liabilities, from between $40 million and $41 million to between $26 million and $31 million. Analysts currently expect the company to earn $2.33 per share on revenue of $160.81 million for the full year. The company said that the reduced guidance reflects the termination of relationships with certain private distributors, who after several rounds of discussions, chose to end their cooperation with the company after learning that their business information was disclosed in the Company's public SEC filings and would continue to be disclosed in such documents as required by SEC regulations. This disclosure, these distributors claim, has led to increased scrutiny of their financial performance by government authorities within China. While the company expects to replace these lost distribution arrangements over time, revenue and net income in the second half of 2010 are expected to be negatively impacted by the disruption in distribution channels. The company expects to incur higher selling and marketing costs during second half 2010 to develop new distributor relationships.
Enterprise GP Holdings L.P. (NYSE: EPE) soared more than 12% after it agreed to merge with Enterprise Products Partners L.P. (NYSE: EPD) in a unit-for-unit deal that values Enterprise GP at about $8.03 billion.
Disclosure: Author doesn't own any of the stocks discussed here.
