U.S. HOT STOCK FUTURES: HOT STOCKS TO WATCH

Among the companies with shares expected to actively trade in Tuesday's session are Tiffany & Co. (TIF), Omthera Pharmaceuticals Inc. (OMTH) and Canadian Solar Inc. (CSIQ).

Tiffany's fiscal first-quarter earnings rose 2.5% as the jewelry retailer's same-store sales growth topped Wall Street estimates. Tiffany had warned it expected fiscal first-quarter adjusted earnings to decline about 15% to 20% due to gross-margin pressure and higher marketing-related costs, but it handily beat that forecast. Shares rose 6.9% to $81.50 premarket.

AstraZeneca PLC (AZN, AZN.LN) said it would acquire Omthera Pharmaceuticals in a deal worth up to $43 million, deepening the Anglo-Swedish drug company's focus on cardiovascular medicines as it seeks to stem revenue declines from patent expirations. AstraZeneca will pay $12.70 a share, or about $323 million in cash, representing an 88% premium to Omthera's closing price on May 24. Omthera shareholders are also entitled to an additional $4.70 a share, or $120 million in total, if certain targets are met. Omthera shares jumped 98% to $13.40 premarket, while AstraZeneca's American depositary shares rose 2.5% to $53.45.

Canadian Solar's first-quarter loss narrowed as the company recorded fewer costs, though revenue and solar-module shipments fell. Still, the maker of solar panels reported gross margin widened, and the company backed its full-year shipments guidance. Shares jumped 25% to $10.73 premarket.

Calling the planned $8.7 billion takeover "extraordinary," Jefferies sees Valeant Pharmaceuticals International Inc. (VRX) rallying further in the wake of its deal for Bausch & Lomb. Highlighting the "fat" in the eyecare firm's overhead, the investment bank thinks Valeant can pose earnings per-share in 2014 that's 40% above Jefferies' latest estimate. The firm also noted that buying Bausch & Lomb gives Valeant increased exposure to non-U.S. locales as well as consumers, diversifying from governments and third parties for drug reimbursement. Separately, Valeant said the U.S. Food and Drug Administration rejected its new drug application for efinaconazole as a treatment for onychomycosis, citing questions about the container closure. The drug maker said no efficacy or safety issues were raised by the agency. Shares rose 10% to $93.10 premarket.

Rival biodefense companies SIGA Technologies Inc. (SIGA) and PharmAthene Inc. (PIP) took the half-full version with Friday's Delaware Supreme Court ruling in their years-long trial involving the licensing of SIGA's smallpox drug. The court reversed some of the damages awarded by a lower court a year ago--which SIGA played up--while PharmAthene stressed the court didn't undo prior findings that "SIGA breached its contractual obligation to negotiate in good faith." The lower court has been ordered to again determine appropriate damages. PharmAthene shares jumped 22% to $1.95 premarket, while SIGA gained 10% to $4.04.

 
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Air Lease Corp. (AL) filed for a public offering of eight million Class-A common shares on behalf of certain shareholders.

Alexion Pharmaceuticals Inc. (ALXN) said the U.S. Food and Drug Administration granted "breakthrough therapy" designation to asfotase alfa for the treatment of certain patients with hypophosphatasia, helping to expedite the product's development.

Data management and protection company Overland Storage Inc. (OVRL) said its board is evaluating an offer from Cyrus Capital Partners L.P. for a potential merger with Cyrus unit Tandberg Data Holdings.

Seadrill Ltd.'s (SDRL SDRL.OS) first-quarter profit edged down 1.7% as the offshore-drilling contractor saw a rise in revenue overshadowed by higher expenses.

Standard & Poor's lowered its outlook on Southern Co. (SO), noting risks associated with a problematic power plant construction project.

Ubiquiti Networks Inc. (UBNT) filed for a secondary offering of 7.7 million common shares on behalf of certain shareholders.

Write to Anna Prior at [e-mail]

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