Morning Buzz: Cimatron Ltd. (CIMT), Regulus Therapeutics (RGLS), Sarepta Therapeutics (SRPT), Tetraphase Pharmaceuticals (TTPH), Tesla Motors (TSLA)

Shares of Cimatron Ltd. (CIMT) surged more than 43% in early pre-market trading Monday, after the company announced a definitive agreement under which 3D Systems (DDD) will acquire all of the outstanding shares of Cimatron for $8.97 per share in cash, for a total of $97 million, inclusive of its net cash.

The Boards of Directors of both companies have unanimously approved the proposed transaction.

3D Systems said the deal will add to its cash flow and to its non-GAAP EPS immediately after its expected close in Q1’15.

“We believe that the perfect strategic fit between our businesses…could present sizeable synergies that together offer significant long-term customer benefits and shareholder value,” Avi Reichental, President and CEO of 3DS said in a statement.

On valuation measures, Cimatron shares are currently priced at 12.72x this year’s forecasted earnings, which makes them relatively inexpensive compared to the industry’s 23.52x earnings multiple. The company’s current year and next year EPS growth estimates stand at 10.40% and 1.90% compared to the industry growth rates of 13.20% and 24.10%, respectively. CIMT has a t-12 price/sales ratio of 1.37. EPS for the same period registers at $0.48.

The shares of Givat Shmuel, Israel-based company recently traded at $8.60, up $2.42 to $8.60.

Investment analysts at Deutsche Bank (DB) initiated coverage on shares of Regulus Therapeutics Inc. (RGLS) in a note issued to investors on Monday. The firm set a ‘Buy’ rating and a $30.00 price target, implying 70% expected return.

Regulus shares recently gained $1.47 to $17.70. In the past 12 months, shares of San Diego, California-based biopharmaceutical company have traded between a low of $5.40 and a high of $25.60. RGLS has advanced 11.62% in the last 4 weeks and 134.20% in the past three months. Over the past 5 trading sessions the stock has lost 5.64%.

Regulus is currently valued at $788.83M and has a median Wall Street price target of $24.00. The name is up 167.38% year-over-year and 119.62% year-to-date.

Sarepta Therapeutics Inc (SRPT) is higher by nearly 15% in early trade. As reported, the Dutch biotech company Prosensa Holding (RNA) is being acquired by Biomarin Pharmaceutical (BMRN) for $680M, or $17.75 per share, representing a 55% premium to the stock’s closing price of $11.44 on Friday. Prosensa’s current portfolio includes six compounds for the treatment of Duchenne muscular dystrophy [DMD].

Sarepta Therapeutics is seeing early strength on the deal given its lead program eteplirsen is for DMD.

SRPT shares recently gained $1.67 to $17.40. In the past 52 weeks, shares of Cambridge, Massachusetts-based company have traded between a low of $14.31 and a high of $40.00. Shares are up 1.88% year-over-year ; down 22.78% year-to-date.

Tetraphase Pharmaceuticals Inc (TTPH) is higher by approximately 16% this morning on news the maker of antibiotics is exploring a sale. Possible buyers include Actelion Ltd. (ATLN) and Roche Holding AG (ROG), according to a Bloomberg report.

Shares of the Watertown, Massachusetts-based company have risen 105.87% year-over-year and 63.39% year-to-date. Tetraphase, which currently has a median Wall Street price target of $28.00 with a high target of $33.00, ended regular trading last week with a market cap of $677M.

Shares of Tetraphase gained $3.32 to $25.23 in recent trading.

Tesla Motors, Inc. (TSLA) – CEO Elon Musk told German weekly Der Spiegel that the U.S. electric carmaker is in talks with Germany’s BMW over a possible alliance in batteries and other components.

“We are talking about whether we can collaborate in battery technology or charging stations,” Musk was quoted as saying in the interview.

TSLA is currently changing hands at $242.40. The stock is up a 100.37% y/y, and 61.68% year-to-date.

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