Shares of Transenterix Inc (NYSE:TRXC) are up over 30% this morning after there have been rumors that Johnson & Johnson (NYSE:JNJ) could be interested in acquiring the company. While there has not been any word directly from either company confirming such a takeover possibility, Johnson & Johnson CEO Gorsky did hint that the company has a possible deal in the works (just not who it is with though).
“As we reflect back on 2015 we realize that the market was premium priced. We remained very active in a number of different areas. And while we didn’t necessarily close on a larger deal, I would not assume that we were not engaged and involved,” Gorsky during a conference call on Tuesday. ““Look, we are and we have been and will continue to be very active in the M&A category. As we mentioned during the earlier comments, if you look at us historically, really over about any timeframe, 20 years, 10 years, what you see is about half of our growth being generated from organic innovation platforms and about 50% being generated vis-a-vis M&A.”
This has led many to believe that Transenterix Inc (NYSE:TRXC) could be a target, and if they are, this could mean big money for shareholders of the company. J&J would certainly love to get their hands on the company that specializes in robot-assisted surgery.
The stock is up 30.29% or $0.63 following the news, hitting $2.71 per share. About 3.45 million shares traded hands or up 780.67% from the average. TRXC has declined 31.35% since June 22, 2015 and is currently downtrending. It has underperformed the S&P500 by 20.33%.
The institutional sentiment decreased to 1.21 in Q2 2015. It’s down 2.41, from 3.62 in 2015Q2. The ratio is negative, as 12 funds sold all their Transenterix Inc shares they owned while 17 reduced their positions. 10 funds bought stakes while 25 increased their total positions. Institutions now own 41.42 million shares which is 51.78% less than the previous share count of 85.89 million in 2015Q2.
Sv Life Sciences Advisers Llc holds 9.54% of its total portfolio in Transenterix Inc, equating to 7.55 million shares. Stepstone Group Lp owns 3.48 million shares representing 3.7% of their total US portfolio. Moreover, Aisling Capital Llc has 3.31% of their total portfolio invested in the company, equating to 8.34 million shares. The New York-based Pura Vida Investments Llc has a total of 1.05% of their portfolio invested in the stock. Perceptive Advisors Llc, a New York-based fund reported 1.83 million shares owned.
TransEnterix, Inc. is a medical device firm focused on the development and commercialization of a robotic assisted surgical system called the SurgiBot System . The company has a market cap of $224.00 million. The Company’s SurgiBot System is designed to utilize flexible instruments through articulating channels controlled directly by the surgeon with robotic assistance while the surgeon remains patientside within the sterile field. It currently has negative earnings. It has commercialized the SPIDER Surgical System, (the SPIDER System) a manual laparoscopic system in the United States, Europe and the Middle East.