Theranos, the controversial company founded by Elizabeth
Holmes that claimed to have developed a revolutionary
blood-testing service, announced it has settled two lawsuits
brought by hedge fund Partner Fund Management. The San
Francisco-based firm had invested $96.1 million in Theranos in
February 2014. The terms of the settlement were not disclosed,
but under the agreement all claims brought by the investor
against Theranos and its officers and directors were dismissed.
"The company now brings to a close the burden and expense of
litigation and preserves resources to bring the miniLab
platform to market," Theranos said in a May 1 announcement. Theranos and Holmes
have been under attack since regulators found there were
problems with the accuracy of many of its tests. On April 17,
the company said it resolved all legal and regulatory
proceedings between Theranos and Centers for Medicare &
Medicaid Services. The following day, the company resolved
claims by the Arizona Attorney General relating to Theranos
blood-testing services in Arizona.
Barclays cut its price target on Athenahealth, a favorite short position of
Greenlight Capital, from $97 a share to $88 apiece, asserting
"growth decelerates" after the company’s
first-quarter report. Barclays took a pessimistic view as far
back as November 2015 when the investment bank downgraded the
shares to "underweight." Shares of the healthcare computing
services company closed Monday up slightly at $98.28, after
plummeting more than 19 percent April 28.
Shares of Valeant Pharmaceuticals International jumped 4.4
percent to close at $9.66 after the embattled drug company
announced that it closed earlier than expected the sale of
three skincare brands to L’Oréal, as well
as the divestiture of a manufacturing facility in Brazil. As a
result, it has cut its senior secured terms loans by another
$220 million as of May 1. Altogether, the company has pared its
total debt by $3.6 billion since the end of the first quarter
of 2016. "The company continues to advance toward its
expectation of paying down $5 billion in debt from divestiture
proceeds and free cash flow within 18 months of August 2016,"
Valeant said in an announcement on May 1.
Barclays raised its price target on Praxair from $125 to
$135 after the industrial gases company reported first-quarter
earnings that exceeded expectations and the
company’s guidance. In late December, Praxair
agreed to acquire German rival Linde AG for $35 billion. "There
is meaningful upside to our price target if Praxair can deliver
its merger with Linde as synergy accretion would enhance
earnings," Barclays told clients in a note.
Soroban Capital Partners recently disclosed that it boosted
its stake in the company to 17.6 million shares, or 6.2 percent
of the total outstanding. At year-end it owned 2.4 million
shares. The stock was flat on Monday.