MARKET CURRENTS
real-time news and commentary for investors
MARKET CURRENTS
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Friday, May 24, 2013
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6:02 PM Actavis (ACT) confirms that an Appeals Court has granted an injunction to AstraZeneca (AZN) to enjoin ACT from further distribution of its generic version of Pulmicort until AZN's appeal before the Court gets resolved. ACT launched its generic version on April 1, following a ruling that AZN's patent was invalid. The following day, the Court then issued a temporary restraining order blocking ACT's generic sales to permit AstraZeneca an opportunity to seek injunctive relief with the Federal Circuit. Shares -0.3% AH. 1 Comment
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5:37 PM Galena Biopharma (GALE) files a primary offering to sell up to 10,771,184 shares of common stock tied to the exercise of its warrants. Shares -2.3% AH. Comment!
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2:51 PM Evoke Pharma has filed for a $24M IPO. The company is a specialty pharmaceutical developer focused primarily on drugs to treat gastrointestinal disorders and diseases. The marquee drug currently in its development is EVK-001, a metoclopramide nasal spray for the relief of symptoms associated with acute and recurrent diabetic gastroparesis in women with diabetes mellitus. The company plans to list its shares on Nasdaq under the symbol "EVOK." Aegis Capital is presently the sole underwriter. Comment!
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1:50 PM More on Bausch & Lomb/ Valeant (VRX +12.8%): Warburg Pincus may agree to terms with VRX as early as next week, but sources tell WSJ the deal could still fall apart. If the deal fails to come to fruition, Warburg may opt for an IPO of Bausch & Lomb instead, something the private-equity firm has mulled since early this year. Comment!
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1:11 PM Medical device maker Derma Sciences (DSCI +0.7%) trades higher today after appointing industry veteran Amy Paul to its Board of Directors effective immediately. Ms. Paul retired from C.R. Bard after 26 years with the company. Comment!
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12:32 PM Vanda Pharmaceuticals (VNDA +16.7%) pops today after the Tech Council of Maryland named the company Life Science Firm of the Year, outlining its encouraging research on tasimelteon, a circadian regulator for the treatment of Non-24-Hour Disorder. The disorder is a rare condition that affects blind people, for which there are currently no FDA-approved drugs. Comment!
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12:21 PM Valeant (VRX +12.3%) is nearing a deal to acquire Bausch & Lomb for ~$9B, WSJ says. Comment!
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12:06 PM Cubist Pharmaceuticals (CBST -1.5%) slips on a downgrade to Neutral on valuation at Janney Capital. Despite the downgrade - not to mention a 36% runup in the shares since last November - the firm raises its price target on the stock by another 10% to $55 from $50. Separately, CBST's CEO Mike Bonney is scheduled to present at Jefferies 2013 Global Healthcare Conference on Monday, June 3, to discuss it's pipeline, financial outlook, and recentdevelopments. Tune into the live presentation here: (Webcast) Comment!
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11:52 AM Venaxis (APPY -5%) slips today after pricing its 10M shares and related warrants to purchase 3.5M shares at a combined public price of $1.25 per share with an exercise price of $1.36. The offering is expected to close on May 30. Venaxis should realize approximately $11.1M in net proceeds from the sale, for which it intends to use primarily for funding of further clinical development and seeking FDA clearance for APPY1, as well as for initial commercialization of the drug in the U.S. and the E.U. Comment!
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11:22 AM China Biologic (CBPO -5.3%) slides on the news that on May 21 two of its shareholders sold its competitor, Shanghai RAAS, about 2.7M of its shares representing 9.9% of equity. CBPO says it had no knowledge of the deal, nor had there been any discussions with Shanghai RAAS. The sale looks to be questionable at best, considering that one of the shareholders' shareholding status was under dispute in a pending case in Hong Kong, and Shanghai RAAS was aware of that fact. Comment!
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11:01 AM Taro Pharmaceutical (TARO -7%) slides after earlier reporting Q1 earnings of $1.10 per share on net sales of $165.1M, an increase of 13.8%, from a year ago. Gross margin grew to 72.4% from 68.3%, offsetting an increase in Research and development expenses by 23.9% to $12.2M. Settlements and loss contingencies totalled $33.3M, dragging down operating income to $63.1M, or 38.2% of net sales, compared to $66.2 million, or 45.6% the year prior. 4 Comments
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10:51 AM Vivus Pharmaceuticals (VVUS +3.6%) extends yesterday's gains, bringing its two-day run to ~13% as Carl Icahn's former head of health care investments Alex Denner is added to First Manhattan's proposed slate of directors. Denner and First Manhattan, who own some 12% of the outstanding shares between them, are critical of VVUS' handling of Qsymia (I, II), and want to get "the best people behind a great asset," First Manhattan says. SA contributor Brian Wilson thinks any weakness in the business is "unlikely to be reflected in the stock price as short sellers worry about a potential bidding war between activist shareholders and management." Comment!
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9:28 AM Deutsche Bank starts Alnylam Pharmaceuticals (ALNY) at Buy with a $40 price target representing a 42.5% premium to Thursday's close. Analyst Alethia Young says the company "has the chance to unlock significant long-term value as they commercialize their assets in the clinic during 2017 and beyond, leading to $4B+ in unadjusted sales." Comment!
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9:15 AM Shares of Intuitive Surgical (ISRG) look set to post solid gains for a second straight day after a jury determined the company was not negligent in its training of surgeons. The $8.45M civil suit revolved around one Fred Taylor who passed away four years after having his prostate removed by ISRG's da Vinci robot. Shares +3.67% premarket. 1 Comment
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8:18 AM Janney Montgomery Scott cuts Cubist Pharmaceuticals (CBST) to Neutral and takes its price target to $50 from $55, bringing its rating and PT largely in line with those of Cantor's Irina Rivkind who upgraded the stock to Hold from Sell (price target $49) on Tuesday. Comment!
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7:45 AM The California Institute for Regenerative Medicine grants Sangamo BioSciences (SGMO) a $6.4M award to develop its ZFP-genome editing technology for the treatment of beta-thalassemia with the ultimate goal of eliminating the need for chronic blood transfusions in patients. SGMO says "the four year grant provides matching funds for preclinical work that will support an IND application and a Phase 1 clinical trial." A recent article by SA contributor Life Sciences Report favorably mentions companies (like SGMO) with platform technologies. (PR) Comment!
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7:30 AM Some details for Covidien's (COV) pharmaceuticals business spin-off (previous): Shareholders will receive one share of the new publicly traded company (Mallinckrodt) for every eight shares of COV they own. Mallinckrodt is expected to begin trading on the NYSE on July 1 (ticker: MNK). (PR) 3 Comments
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7:27 AM Pfizer's (PFE) price target is hiked a buck to $29 at MKM Partners as the earlier-than-expected Zoetis (ZTS) spinoff has the team cutting their 2013 EPS forecast to $2.17 from $2.23, but raising estimates from 2014-17. The company remains a Hold however, as it's trading just above what MKM considers fair-value. Comment!
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