Lightly-traded nano cap Alcobra (NASDAQ:ADHD) slumps 13% AH on higher-than-average volume in response to a presentation of results from a Phase 2b clinical trial evaluating Metadoxine (vitamin B6 and L-PGA) for the treatment of attention deficit/hyperactivity disorder given by Dr. Lenard Adler at the American Academy of Child & Adolescent Psychiatry Meeting in San Diego.
On Slide 26, the graph shows that Metadoxine failed to demonstrate statistically significant efficacy compared to placebo at week six (p=0.136). This was the study's primary endpoint.
Fresenius Medical Care (FMS -0.2%) acquires National Cardiovascular Partners (NCP) for an undisclosed sum. The company expects the acquisition to add more than $200M to the top line in 2015 and be accretive to earnings in the first year after closing.
NCP is a leading operator of endovascular, vascular and cardiovascular services in the outpatient setting. It partners with over 200 doctors in 21 outpatient vascular centers in six states.
Hedge fund manager Dan Loeb's bullish thesis on Amgen (AMGN -1.4%) relies on a break-up of the company into two separate organizations, one that would sell its legacy drugs and one that would focus on developing its pipeline. The idea was originally proposed by Sanford Bernstein's Geoffrey Porges in June.
Mr. Loeb believes that the split would increase the company's value ~80% or to ~$249 per share. He says that the market has penalized Amgen for three reasons: lack of R&D productivity, flat operating margins and the suspension of its share repurchase program. He also states that the market appears to be ignoring the disruptive potential of some of the firm's new products, like evolocumab for the treatment of dyslipidemia.
Amgen CEO Bob Bradway appears open-minded to the idea. The company has a business review meeting scheduled for October 28.
In response to the changes in the tax code related to inversions, Abbott (ABT -1.1%) and Mylan (MYL -2.5%) adjust the terms of their $5.3B all-stock deal. The pricing terms related to product manufacturing and supply have been changed in favor of New Mylan and the number of shares of stock to be issued to Abbott have been increased to 110M from 105M.
Former shareholders of Mylan will own ~78% of New Mylan and Abbott and its affiliates will own ~22%. The transaction is expected to close in Q1 2015.