Are Nanosphere Shareholders Getting Enough With This New Offer?

By Chris Lange Updated Jan 13, 7:42AM EST · Published May 23, 10:45AM EDT

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Are Nanosphere Shareholders Getting Enough With This New Offer? — © Thinkstock

Nanosphere Inc. (NASDAQ: NSPH) started the week off with a bang on Monday, following an update on an acquisition offer. Luminex Corp. (NASDAQ: LMNX) is raising the stakes for its buyout offer on Nanosphere. The offering was previously for $1.35 per share, but Luminex has tacked on another 35 cents to make the offer now worth $1.70 per share.

It’s worth noting that this increase was in response to an unsolicited third-party offer for Nanosphere at $1.50 per share.

At the $1.70 price point, the entire transaction is valued at roughly $77 million, a premium of 30% from Friday’s closing price of $1.31. Compared to the 50-day ($0.86) and 200-day ($1.27) moving averages, the deal has premiums of 98% and 34%, respectively.

This deal also represents about 9% of Luminex’s total market cap of $872 million.

Looking ahead, consensus estimates from Thomson Reuters predict that Nanosphere will have $28.0 million in revenues for the 2016 full year and of $38.8 million for the following year.
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Nanosphere is enhancing medicine through targeted molecular diagnostics that result in earlier disease detection, optimal patient treatment and improved health care economics. The company’s versatile technology platform, the Verigene System, enables clinicians to rapidly detect the most complex, costly and deadly infectious diseases through a low-cost and simple-to-use multiplexed diagnostic test.

So far in 2016, Nanosphere shares have outperformed the broad markets, with the stock up about 115% (not including Monday’s move). However, over the past 52 weeks the stock is down 65%.

Shares of Nanosphere were last seen trading up nearly 27% at $1.66, with a consensus analyst price target of $1.50 and a 52-week trading range of $0.48 to $3.90.

Luminex shares were trading up 1.4% at $20.14. The consensus price target is $21.00 and the 52-week range is $16.16 to $22.85.

About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.