Intersect ENT (NSDQ:XENT) shares soared today on news that Medtronic (NYSE:MDT) has made a bid for the Menlo Park, Calif.-based ear, nose and throat condition treatment developer.
Bloomberg reported the transaction late Tuesday, attributing the news to “people with knowledge of the matter.” Traders sent Intersect ENT shares up 38% in premarket trading. Medtronic declined to comment.
Intersect reported a first-quarter 2020 loss of -$17.53 million in May, compared with a -$10.8 million loss for the same period of 2019. President & CEO Thomas West attributed the loss to the reduction in elective sinus surgeries during the COVID-19 pandemic.
Intersect said in February that it expected sales of $115 to $119 million in fiscal 2020, but withdrew that guidance in April and announced cost-cutting plans in May. Those cuts included worker furloughs and layoffs, a hiring freeze, suspension of near-term production and delaying clinical research projects.
XENT shares opened the day at $18.96, and had leveled off to $17.80 at midday.