CLOV, ADMS stocks up on rating upgrade, purchase deal

Highlights

  • Stocks of Clover Health Investments, Corp. (NASDAQ: CLOV) and Adamas Pharmaceuticals, Inc. (NASDAQ: ADMS) were gaining traction on Monday.
  • The Centers for Medicare and Medicaid Services (CMS) upgraded the CLOV stock to a 3.5-star rating for its preferred provider organization (PPO) plan.
  • Adamas Pharmaceuticals, Inc. stock jumped on the announcement of its acquisition by Supernus Pharmaceuticals Inc. for US$450 million.

Stocks of Clover Health Investments, Corp. (NASDAQ: CLOV) and Adamas Pharmaceuticals, Inc. (NASDAQ: ADMS) caught investors’ attention on Monday after the former received a rating upgrade and the latter revealed its acquisition by Supernus Pharmaceuticals for US$450 million.

CLOV stock traded at US$7.94, up 1.15%, and ADMS stock traded at US$7.81, up 69.41%, in the premarket session at around 8:25 am ET.

Here are some recent developments of the two companies.

Clover Health Investments, Corp. 

The Franklin, Tennessee-based Clover Health uses its proprietary platform to collect and analyze data to lower costs and improve medical outcomes.

The company announced that the Centers for Medicare and Medicaid Services (CMS) upgraded its Medicare Star Ratings for Clover’s Medicare Advantage Plan to a 3.5-star rating. 

Clover serves 90% of its medicare membership through its PPO (preferred provider organization) plans. CMS also had recently approved the expansion of Clover’s Medicare Advantage Plan to 209 counties in nine states in 2022. In addition, Clover’s 50% medicare advantage members are people of color compared to the industry’s average of 34%. 

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For the three months ended June 30, 2021, the revenue of the healthcare provider was US$412 million compared to US$172 million for the June quarter of 2020. 

The net loss per share diluted attributable to the common shareholders was US$0.78 against a net income of US$0.01 per share diluted.

The company’s current market capitalization is US$3.5 billion. The stock price rose to the highest of US$28.85 and the lowest of US$6.31 in the last 52 weeks. On Oct 8, the stock closed at US$7.85, up 6.08%, with a trading volume of 30,401,110.

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Trending stocks: Clover Health Investments, Corp. (NASDAQ: CLOV), Adamas Pharmaceuticals, Inc. (NASDAQ: ADMS). Clover stock up on 3.5-star rating, ADMS on being acquired by Supernus Pharmaceuticals.

Source – pixabay

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Adamas Pharmaceuticals, Inc. 

The Emeryville, California-headquartered company develops therapeutics for chronic central nervous system disorders.

The stock jumped on Monday on the news of its acquisition by Supernus Pharmaceuticals Inc for US$450 million. On Monday, the company said it clinched a definitive agreement with Supernus Pharmaceuticals, Inc for the purchase.

The offer includes US$8.10 per share in cash amounting to an aggregate of US$400 million and US$1.00 per share in cash for two non-tradable contingent value rights (CVR) amounting to US$50 million. 

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For the three months ended June 30, 2021, the revenue of Adamas was US$21.97 million from its two segments: products sales and royalty. The revenue for the same period in 2020 was US$18.79 million.

The net loss per share diluted was US$0.27 compared to a net loss of US$0.37 per share diluted in the year-ago quarter. The 52-week highest and lowest stock prices were US$9.15 and US$2.96, respectively. On Oct 8, the stock closed at US$4.61, up 2.22%, with a share volume of 63,175

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Bottomline

The NASDAQ Biotech Index increased by 2.61 percent YTD but fell 9 percent in one month. Biotechnology stocks typically jump on drug approval or commercialization rights. CLOV stock fell 53 percent YTD but rose 10 percent in one week. At the same time, ADMS gained 6.47 percent YTD and fell 0.65 percent in one week. However, investors should evaluate the companies carefully before investing in stocks.  

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