Mon, Nov. 23, 2:47 PM
- Goldman Sachs' Hedge Fund VIP list of the 50 most-heavily-owned stocks have trailed the S&P 500 by about 500 basis points (down 2% vs. the S&P's 3% gain) year-to-date, including 720 basis points of underperformance since the start of October (down about 8% vs. down about 1%).
- Call it the Valeant effect: Health-care stocks have accounted for about 70% of the year-to-date 2% decline.
- Based on the most recent filing, hedge funds are bailing on some of their poorer performers, including Valeant (NYSE:VRX), HCA Holdings (NYSE:HCA), Endo (NASDAQ:ENDP), Ally Financial (NYSE:ALLY), and NorthStar Realty (NYSE:NRF), and have instead placed bets on Baidu (NASDAQ:BIDU), Mylan (NASDAQ:MYL), MGM Resorts (NYSE:MGM), and GE.
- After the shakeup, the top five hedge fund hotels: Allergan (NYSE:AGN), Facebook (NASDAQ:FB), Alphabet (GOOG, GOOGL), Time Warner Cable (NYSE:TWC), and Amazon (NASDAQ:AMZN).
Fri, Nov. 20, 1:22 PM
- Sucampo Pharmaceuticals (SCMP -0.3%) initiated with Hold rating and $19 (10% upside) price target by Jefferies.
- BioMarin Pharmaceutical (BMRN -4.8%) initiated with Buy rating and $158 (61% upside) price target; bluebird bio (BLUE +1.2%) with a Buy rating and $165 (104% upside) price target; Incyte (INCY -3.2%) with a Buy rating and $135 (20% upside) price target; Kite Pharma (KITE -0.2%) with a Buy rating and $111 (32% upside) price target and Seattle Genetics (SGEN +0.1%) with a Sell rating and $33 (25% downside risk) price target by Goldman Sachs.
- Mylan (MYL +0.4%) initiated with Overweight rating and $62 (21% upside) price target by Morgan Stanley.
- Athenahealth (ATHN +0.4%) initiated with Overweight rating and $170 (7% upside) price target and Allscripts Healthcare Solutions (MDRX +0.5%) with an Overweight rating and $17 (14% upside) price target by J.P. Morgan.
- Genomic Health (GHDX -0.7%) upgraded to Outperform from Market Perform by Cowen & Co. Price target raised to $35 (21% upside) from $27.
- Shire plc (SHPG -0.9%) upgraded to Outperform from Market Perform by Leerink. Price target raised to $239 (12% upside) from $220.
- Cempra (CEMP -0.5%) upgraded to Overweight from Equal Weight by Morgan Stanley. Price target raised to $38 (30% upside) from $25.
- Athenahealth (ATHN +0.4%) downgraded to Underweight from Equal Weight by Barclays. Price target lowered to $110 (31% downside risk) from $140.
- Osiris Therapeutics (OSIR +1.9%) downgraded to Sell from Hold by Brean Capital. Price target is $8 (25% downside risk).
- Endo International (ENDP -0.3%) downgraded to Neutral from Buy by Mizuho. Price target lowered to $55 from $82 (7% downside risk).
- Kite Pharma (KITE -0.2%) downgraded to Hold from Buy by Standpoint Research. Price target maintained at $100 (19% upside).
Fri, Nov. 20, 9:40 AM
- Mylan (MYL -1.4%) finalizes its acquisition of certain women's healthcare businesses from Mumbai, India-based Famy Care Limited, which will operate as Jai Pharma. The deal includes dedicated hormone manufacturing in addition to a broad portfolio of products. The company will also take on 1,000 employees.
- The transaction will be immediately accretive to Mylan's non-GAAP EPS.
Tue, Nov. 17, 7:39 AM| Tue, Nov. 17, 7:39 AM | 1 Comment
Mon, Nov. 16, 12:26 PM
Fri, Nov. 13, 9:44 AM
- Perrigo (PRGO -6.9%) confirms that Mylan (MYL +10.6%) failed to gain tender commitments for at least half of Perrigo's shares in its bid for the company. As of the deadline this morning at 8:00 am ET, less than 40% of PRGO stockholders had tendered shares.
- Chairman & CEO Joseph Papa says, "We have said all along that this offer from Mylan was a bad deal for our shareholders, as its significantly undervalued our durable business model and industry-leading future growth prospects. Strong organic growth, a disciplined approach to M&A and transparent, accessible corporate governance policies are the foundation of our successful business strategy. I am delighted that Perrigo shareholders voiced their clear support for this management team and our long-term strategy, highlighted by our "Base Plus Plus Plus" growth model. Now that the Mylan tender offer is behind us, we look forward to continuing to create significant value for our shareholders. Our confidence in Perrigo's compelling near- and longer-term growth prospects and our steadfast commitment to delivering returns to shareholders remain unchanged. Even with all the distractions over the past seven months, our unrivaled team has executed our strategy and continued our commitment to delivering Quality Affordable Healthcare Products to customers and patients across the globe."
- The company will immediately begin its previously announced $2B stock repurchase program with a buy back of $500M by year end.
Fri, Nov. 13, 9:14 AM
Fri, Nov. 13, 7:54 AM
- To no one's surprise, it appears that Mylan (NASDAQ:MYL) will come up short in its effort to get Perrigo (NYSE:PRGO) stockholders to tender at least 50% of the company's outstanding shares by this morning. The deal was $75 in cash plus 2.3 MYL shares for each PRGO share. Based on yesterday's closing prices, Mylan's bid is valued at $174.36, a modest 11.4% premium over Perrigo's closing price of $156.55.
- PRGO shareholders appear to agree that Mylan's bid was too low.
- In premarket trading, MYL is up 11% and PRGO is down 11%, both on robust volume.
Thu, Nov. 12, 10:43 PM
- With an 8 a.m. deadline looming, Mylan (NASDAQ:MYL) is set to lose in its $26B hostile bid for Perrigo (NYSE:PRGO), with a minority of shareholders tendering their holdings, sources tell The Wall Street Journal.
- Shares could keep coming in by morning -- but most institutional shareholders had to tender by tonight to be counted by the DTC clearinghouse, so the result may be a foregone (but surprising) conclusion.
- Mylan needs to hit the 50% threshold to take control.
- Mylan's been engaged in a pitched seven-month pursuit of the generic-drug maker, full of back-and-forth sniping between boards and execs.
- Previously: U.S. FTC OKs Mylan's intended takeover of Perrigo (Nov. 03 2015)
- Previously: Mylan discloses SEC subpoena; Perrigo issues new broadside against bid (Oct. 30 2015)
Tue, Nov. 3, 6:52 PM
- The U.S. Federal Trade Commission (FTC) clears Mylan's (NASDAQ:MYL) proposed acquisition of Perrigo (NYSE:PRGO) subject to Mylan divesting certain products following the close of the deal. The FTC's action is the final regulatory hurdle needed by Mylan to close the transaction.
- There is a bit of work remaining, though, since Perrigo has repeatedly stated that Mylan's offer of $75 per share plus 2.3 shares of MYL for each PRGO share is grossly inadequate. It continues to urge its stockholders not to tender shares. The deadline to do so is 8:00 am ET on November 13.
Fri, Oct. 30, 5:19 PM
- Mylan (MYL -3.7%), down 0.2% after hours, says in its 10-Q filing that on Sept. 10, it got a subpoena from the SEC "seeking documents with regard to certain related party matters."
- "Mylan is cooperating with the SEC in its investigation, and we are unable to predict the outcome of this matter at this time," the company says of the subpoena.
- Mylan issued a Friday night document dump related to its hostile Perrigo (PRGO -4.9%) bid.
- Perrigo reacted predictably to Mylan's latest earnings presentation, again calling the offer "grossly inadequate" and saying the presentation appeared "PRGO)+Comments+on+Mylan+(NASDAQ:MYL)+Presentation%3B+Says+it+Appeared+Unconvincing/11020465.html" target="_blank">unconvincing." Perrigo still strongly recommends its shareholders avoid tendering into Mylan's deal.
- "Mylan is avoiding the real measures that shareholders look to, such as actual takeover premiums and Perrigo's durable high trading multiple, and instead invents new concepts – such as 'hypothetical' share prices and 'accretion' to target shareholders," Perrigo's statement read.
- Previously: Perrigo strikes out with NY court in attempt to block Mylan bid (Oct. 30 2015)
- Previously: Mylan fails to impress analysts on the merits of its bid for Perrigo (Oct. 14 2015)
Fri, Oct. 30, 10:31 AM
- Mylan (MYL -3.7%) Q3 results: Revenues: $2,695.2M (+29.3%); COGS: $1,379.9M (+28.8%); R&D Expense: $174.8M (+10.5%); SG&A: $537.1M (+28.4%); Operating Income: $601.1M (+21.4%); Net Income: $428.6M (-14.1%); EPS: $0.83 (-34.1%); Quick Assets: $587M (+160.3%).
- 2015 Guidance: Adjusted EPS expected at the high end of $4.15 - 4.35.
Fri, Oct. 30, 8:39 AM
- The U.S. District Court for the Southern District of New York denies Perrigo's (NYSE:PRGO) motion for a preliminary injunction to block Mylan's (NASDAQ:MYL) hostile takeover bid, ruling that Mylan had provided adequate public disclosures regarding the synergies expected from the combination of two firms. It also ruled that Mylan's disclosures pertaining to its plan to delist Perrigo from the NYSE and TASE as soon as practicable following the merger were appropriate.
- Mylan's offer is $75 plus 2.3 MYL shares for each PRGO share. Based on yesterday's closing for MYL, the offer is valued at $180.29, less than a 9% premium over PRGO's closing price of $165.81.
Fri, Oct. 30, 7:02 AM
Thu, Oct. 29, 5:30 PM| Thu, Oct. 29, 5:30 PM | 19 Comments
Wed, Oct. 28, 5:39 PM
- Sanofi (SNY +1.9%) is recalling all of its U.S. market epinephrine pen injectors, used to treat severe allergic reactions, because the devices may be delivering incorrect amounts of the drug.
- All Auvi-Q injectors on the U.S. market -- about 490,000 packs, most of which contain two injectors -- are subject to the recall. The company estimates about 200,000 people in the U.S. have its injector.
- Mylan (MYL +1.8%), maker of the competing EpiPen, is up another 1.8% after hours. Sanofi shares were up 0.4% in late trading.
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