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Jesup & Lamont Downgrades Draxis Health (DRAX) to Neutral

April 9, 2008 9:36 AM EDT
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Jesup & Lamont downgrades Draxis Health (Nasdaq: DRAX) to Neutral, citing a favorable buyout agreement by Jubilant.

The firm calls Jubilant's $6 offer for Draxis "fair", as it represents a 20%+ premium from its closing price the day before the acquisition was announced. Jesup & Lamont believes the chances of another bidder coming in to make an offer are slim as the deal includes a $10.5 million break-up fee.

Draxis Health, Inc., through its wholly owned subsidiary, DRAXIS Specialty Pharmaceuticals, Inc., provides products in the areas of sterile, nonsterile, and radiopharmaceuticals. [BCS]

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