Sterne Agee analyst April Scee says it makes more sense that Reckitt Benckiser (OTCPK:RBGLY, OTCPK:RBGPF) will make an offer for Church & Dwight (NYSE:CHD) than Procter & Gamble (NYSE:PG).
Though the P&G buyout speculation that drove Church & Dwight to a +20% premarket spike yesterday fizzled, there's still some leftover M&A intrigue around the company due to its strong presence in the U.S.
CHD +6.73% premarket to $103.51. For its part, Procter & Gamble is down 3% over the last few sessions with more retailers reporting tepid U.S. demand for consumer products.
Coffee prices continue to fall as strong El Nino rains in Brazil help to boost crop yields. The next harvest in the nation is forecast to be up 20% Y/Y at 58M bags.
Even with Arabica prices down 28% this year, analysts see another swing lower for coffee in 2016 due to the oversupply situation.
Weak currencies in South America are also providing a strong incentive to local producers to sell as much as they can.
The trend toward low coffee prices is helping to lift margins for many coffee sellers with U.S. retail prices only down 4% to 5% this year. Companies light on hedging positions are seeing the biggest benefit.
Most execs play coy over the bottom line benefit of lower coffee commodity prices, but even Starbucks CFO Scott Maw had to concede that pricing looked a "little bit favorable" during the firm's last earnings call (transcript).
The FDA approves privately held Adapt Pharma's Fast Track- and Priority Review-tagged NARCAN (naloxone hydrochloride) nasal spray for the treatment of opioid overdose. The product does not require assembly and can be administered by anyone, even those with no medical training. NARCAN is sprayed into one nostril while the patient is lying on his/her back and can be repeated if necessary. Immediate medical care is still required, however.
The FDA's action is a good example of the benefits of Priority Review and Fast Track. The PDUFA date was January 20.
Privately held Adapt Pharma announces that the FDA has accepted under Priority Review its New Drug Application (NDA) for Fast Track-tagged NARCAN (naloxone hydrochloride) Nasal Spray for the emergency treatment of opioid overdose. If approved, it will be the first non-injectable opioid antidote available for sale. Adapt licensed NARCAN from LightLake Therapeutics.
According to the CDC, there were almost 25K opioid overdose deaths in the U.S. in 2013.
Reckitt agreed to buy K-Y last year but encountered opposition from UK authorities who said the deal would reduce competition and result in higher prices for consumers. The CMA asked the company put forward measures to allay their concerns, but its initial proposals were unsuccessful.
The company's plan to purchase the K-Y business in New Zealand was also blocked due to anti-competitive concerns. Reckitt chief Rakesh Kapoor isn't too concerned since the bulk of K-Y sales come from the U.S., Canada and Brazil.
Under Mr. Kapoor, Reckitt is moving into higher margin consumer health products. The strategy appears to be working. H1 comps were up 13%.
Privately-held Adapt Pharma submits a New Drug Application (NDA) to the FDA seeking approval for Fast Track-designated Narcan (naloxone) Nasal Spray for the treatment of opioid overdose. If approved, Narcan will be the first non-injectable opioid antidote available for sale. Its formulation will make it a much-preferred option for community settings where most overdoses occur.
According to the CDC, there were ~24,500 opioid overdose deaths in the U.S. in 2013.
Adapt licensed Narcan from LightLake Therapeutics (OTCQB:LLTP) in late 2014.
Antitrust regulators in France have fined 11 companies a combined $1.17B on price-rigging charges.
Companies hit by the action include L'Oreal (OTCPK:LRLCF), Unilever (NYSE:UL), Colgate-Palmolive (NYSE:CL), Hillshire Brands (NYSE:HSH), Johnson & Johnson's (NYSE:JNJ) French business, and Reckitt Benckiser Group (OTCPK:RBGLY).
Statements from the consumer products sellers expressed some outrage over the sanctions due to the limited impact on consumers.
LightLake Therapeutics (OTCQB:LLTP +8.1%) enters into a license agreement with Adapt Pharma Limited subsidiary Adapt Pharma Operations Limited to develop and commercialize LightLake's intranasal naloxone opioid overdose reversal treatment. Under the terms of the contract, LightLake is eligible to receive as much as $55M in development- and sales-based milestones plus double-digit royalties.
In a clinical trial, data showed that LightLake's technology can potentially deliver naloxone into the blood stream as quickly as an injection, which is the current approach used by hospitals and first responders treating opioid overdoses. The company initiated a second study on December 4.