Cubist Pharmaceuticals: An Extraordinary Arbitrage Opportunity
Mon, Jan. 11, 4:27 PM
Dec. 18, 2015, 10:31 AM
- M&A rumors are active this morning with the latest being Stryker (SYK -1%) eyeing Smith & Nephew (SNN +3.5%).
- Unsurprisingly, Merck (MRK -1.1%) continues to eye Relypsa (RLYP +0.9%).
- Previously: Relypsa up 17% on rumored Merck interest (Dec. 4)
- Update: Sources say the Stryker will pay ~$18B for SNN. A deal could be announced as early as next week.
Dec. 4, 2015, 12:01 PM
- Relypsa (RLYP +16.6%) jumps on increased volume in response to rumors that Merck (MRK +0.5%) may be eyeing the company. Actelion Pharmaceuticals (OTCPK:ALIOY -0.4%) is another rumored suitor considering AstraZeneca's (AZN +0.4%) recent takeover of ZS Pharma (ZSPH -0.1%).
- Relypsa's sole product is Veltassa (patiromer for oral suspension) for the treatment of hyperkalemia (abnormally high levels of serum potassium), cleared by the FDA on October 21.
- Previously: Good news is bad news for Relypsa; shares down 26% premarket after approval of Veltassa (Oct. 22)
- Previously: ZS Pharma take out by AstraZeneca puts the spotlight on Relypsa; shares rise 17% premarket (Nov. 6)
Nov. 13, 2015, 6:52 AM
- Merck's (NYSE:MRK) Animal Health unit acquires privately held Harrisvaccines for an undisclosed sum. The Ames, IA-based firm develops and commercializes vaccines for food production and companion animals based on its proprietary RNA Particle technology and its versatile production platform that enables it to target a wide range of viruses and bacteria.
Nov. 4, 2015, 12:48 PM
- Johnson & Johnson (JNJ) acquires privately held Novira Therapeutics, a clinical stage biopharmaceutical firm developing therapies to cure chronic hepatitis B infection within one year of treatment, for an undisclosed sum. The transaction should close this quarter.
- Novira's lead product candidate is NVR 3-778, a orally available, small molecule, direct-acting antiviral that inhibits the HBV core or capsid protein. HBV core is an attractive drug target since it is plays a key role in viral replication and survival. NVR 3-778 disrupts the HBV life cycle by inducing the assembly of defective capsids. According to the company, its inhibitors, when used in combination with current standard-of-care drugs (nucleosides and interferon), should deliver greater and faster suppression of viral DNA and new virus production.
- Selected HBV-related tickers: (ARWR +2.1%)(GILD -1%)(CTRV -3.2%)(ABUS +2.6%)(DVAX -1.8%)(MRK +0.7%)(SNY -0.8%)(GSK +0.1%)(ISIS +2.1%)(ALNY +3.1%)(BMY -0.6%)
May 29, 2015, 12:19 PM
- Bayer's (OTCPK:BAYRY) (OTCPK:BAYZF) current #5 rank in the global animal health market could change once it divests its low margin plastics business either via an IPO or direct sale, possibly to a private equity firm. Analysts believe the unit could fetch as much as 11B euros ($12.1B).
- CEO Marijn Dekkers says animal health is a "very attractive business for us. We've always looked with interest in it. It hasn't happened with us yet."
- The top acquisition target would be Zoetis (ZTS +0.8%) which generated $4.8B in sales in 2014. Bayer will probably have competition, though. Valeant Pharmaceuticals (VRX -1.7%) and Merck (MRK +0.2%) have been mentioned as likely suitors.
Jan. 21, 2015, 8:53 AM
Dec. 18, 2014, 8:23 AM
- Merck (NYSE:MRK) acquires privately-held Lausanne, Switzerland-based Oncoethix for an upfront payment of $110M and up to an additional $265M in clinical and regulatory milestones.
- Oncoethix's lead product is OTX015, a BET bromodomain inhibitor (2,3,4) currently in Phase 1b development for the treatment of hematological malignancies and advanced solid tumors.
- Bromodomain proteins 2,3 and 4 are considered potential cancer targets because of their pivotal role in regulating the transcription of growth-promoting genes and cell cycle regulators. In experimental models, the inhibition of BRD2/3/4 produced a potent antiproliferative effect associated with cell cycle arrest and cellular senescence.
Dec. 16, 2014, 1:55 AM
Dec. 8, 2014, 7:20 AM
- Merck (NYSE:MRK) acquires Cubist Pharmaceuticals (NASDAQ:CBST) for $102 per share in cash or ~$9.5B. The equity value is $8.4B plus $1.1B in debt.
- CBST +34.5% to $99.98, MRK +0.15% premarket
- Previously: Merck close to $7B deal to acquire Cubist Pharmaceuticals (Dec. 7, 2014)
Dec. 7, 2014, 5:27 AM
- Merck (NYSE:MRK) is in talks to buy Cubist Pharmaceuticals (NASDAQ:CBST), in a deal valued at more than $7B, Bloomberg reports.
- Merck would pay about $100 per share. An offer in that range would represent a 34% premium over Cubist’s closing price on Dec. 5.
- An agreement could be announced as early as this week.
Nov. 24, 2014, 8:40 AM
- Tetraphase Pharmaceuticals (NASDAQ:TTPH) is reportedly considering selling itself after being approached by interested suitors. Sources say the acquirer could be Acetelion (OTCPK:ALIOF) (OTC:ALIOY) or Roche (OTCQX:RHHBY).
- The attraction is Tetraphase's antibiotic eravacycline, currently in Phase 3 development. Both oral and IV formulations of the drug have demonstrated higher dose response rates than Johnson & Johnson's (NYSE:JNJ) Levaquin (levofloxacin) for the treatment of complicated urinary tract infections. In the Ignite-2 study, patients receiving 200 mg eravacycline IV-to-oral doses achieved a response rate of 70.8% while patients receiving 250 mg IV-to-oral doses achieved 64.3%, both significantly ahead of Levaquin's 52.2% response rate.
- A trial comparing eravacycline to Merck's (NYSE:MRK) Invanz (ertapenem) for the treatment of complicated intra-abdominal infections is underway.
- TTPH is up 18% premarket on light volume.
- Previously: Tetraphase completes eravacycline Phase 3 enrollment
Oct. 19, 2014, 9:49 AM| Oct. 19, 2014, 9:49 AM | 2 Comments
Aug. 5, 2014, 7:46 AM
Jul. 21, 2014, 8:56 AM
- German private equity firm Aurelius has agreed to buy Reckitt Benckiser's (OTCPK:RBGLY) Scholl shoe business. The company is expecting the brand to expand internationally and maintain growth.
- Aurelius will acquire the international rights to the business, except for North and South America, which will go to Bayer (OTCPK:BAYRY) as part of its $14B purchase of Merck (NYSE:MRK).
- The deal is expected to close in the third quarter of 2014.
Jun. 20, 2014, 8:13 AM
Merck & Co., Inc. provides various health solutions through its prescription medicines, vaccines, biologic therapies, animal health, and consumer care products worldwide. It is a global research-driven pharmaceutical company that discovers, develops, manufactures and markets vaccines and... More
Industry: Drug Manufacturers - Major
Country: United States
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