Here’s Why Mylan, Diamondback Energy, TESARO and Two Other Stocks Are Surging Today

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Climbing oil prices and polls suggesting Hillary Clinton’s success in the second presidential debate are favoring the market sentiment on Monday, as all three indices are trading in the green today.

Among the most notable gainers today are IntelliPharmaCeutics Intl Inc (USA) (NASDAQ:IPCI), Mylan NV (NASDAQ:MYL), Mobileiron Inc (NASDAQ:MOBL), TESARO Inc (NASDAQ:TSRO), and Diamondback Energy Inc (NASDAQ:FANG). Let’s find out why these stocks are advancing today, and take a look at the hedge fund sentiment towards them based on the last 13F filings of some 740 funds we track.

Academic research has shown that certain insider purchases historically outperformed the market by an average of seven percentage points per year. This effect is more pronounced in small-cap stocks. Another exception is the small-cap stock picks of hedge funds. Our research has shown that imitating the 15 most popular small-cap stocks among hedge funds outperformed the market by nearly a percentage point per month between 1999 and 2012 (read more details here).

Wall Street Bull

Wall Street Bull

IntelliPharmaCeutics Receives Tentative FDA Approval

Shares of Canadian pharmaceutical company IntelliPharmaCeutics Intl Inc (USA) (NASDAQ:IPCI) have surged by more than 19% after the company on Friday said it had received a tentative FDA approval for its abbreviated new drug application (ANDA) for quetiapine fumarate extended-release tablets. The drug is a generic equivalent for Seroquel XR, which is sold in the US by Astra Zeneca Pharmaceuticals, which has permitted IntelliPharmaCeutics to sell generic versions of the 50, 150, 200, 300 and 400 mg strengths of Seroquel XR after the final FDA approval. In a statement, IntelliPharmaCeutics CEO Dr. Isa Odidi said the tentative approval shows a “substantial commercial opportunity” for the company. Ken Griffin’s Citadel Investment Group owns 14,492 shares of the company as of the end of June.

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Mylan Pays $465 Million to Settle EpiPen Controversy

Mylan NV (NASDAQ:MYL)’s stock has gained over 9% so far today after the company said it had agreed to pay $465 million to the Justice Department and other government agencies to settle the allegations according to which the company had overbilled Medicaid for its life-saving EpiPen. The settlement gives an all clear to the UK based medical company. Mylan has also lowered its 2016 adjusted earnings expectations $4.70-$4.90 per share, from $4.85-$5.15. Mylan has been under fire after it raised the price of EpiPen to more than $600 for a pack of two from about $100. A total of 44 funds tracked by Insider Monkey were long Mylan NV (NASDAQ:MYL) at the end of the second quarter, down from 51 funds a quarter earlier.

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We will discuss the other three stocks that are trading well in the green on the next page.

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