Baxalta: A Spin-Off That Could Be Revalued Up To 50% Higher
Mike Serebrennik • 23 Comments
Mike Serebrennik • 23 Comments
I Was Inverted With Shire
Chris DeMuth Jr. • 49 Comments
Chris DeMuth Jr. • 49 Comments
ViroPharma: Cinryze Shining The Pharma Stock
Fri, May 13, 6:25 PM
- Third Point's 13F filing shows it took new positions in EMC (EMC, 7M shares), Google (GOOGL, 700K shares) and Baxalta (BXLT, 6M shares) while selling out of eBay (EBAY, 4M shares), and Morgan Stanley (MS, 3M shares).
- Like Appaloosa, the firm also took a new stake in Twenty-First Century Fox (FOXA, for 1.45M shares).
- Third Point trimmed its stake in Amgen (NASDAQ:AMGN) by two-thirds, selling 6.04M shares, and cut its holdings in J M Smucker (NYSE:SJM) by 875,000. It did boost holdings in Yum Brands (NYSE:YUM) with 5.4M additional shares, as well as 1.5M in calls.
Tue, May 10, 5:02 PM
Mon, May 2, 8:45 AM
- The achievement of certain regulatory and sales milestones triggers the payment of two undisclosed milestone payments to Kamada (NASDAQ:KMDA) from strategic partners Chiesi Farmaceutici S.p.A. and Baxalta (NYSE:BXLT).
- The milestone from Chiesi was based on the filing of a Marketing Authorization Application (MAA) in Europe for inhaled alpha-1 antitrypsin (AAT) for the treatment of AAT deficiency.
- The Baxalta payment was based on achieving a sales milestone related to Glassia, Kamada's intravenous AAT treatment. Baxalta is the exclusive distributor for all indications in the U.S., Canada, Australia and New Zealand.
- Kamada will record the payments as deferred revenue and will recognize them during the terms of the agreements. The company expects Glassia revenue to hit $100M next year.
- Shares are up 9% premarket on light volume.
Mon, May 2, 7:09 AM
- The European Medicines Agency's Committee for Medicinal Products for Human Use (CHMP) adopts a positive opinion recommending approval of Baxalta's (NYSE:BXLT) HyQvia (Human Normal Immunoglobulin (10%), Recombinant Human Hyaluronidase) for use in pediatric patients with primary and certain secondary immunodeficiencies. It was initially approved in May 2013 for use in adult patients. It is the only subcutaneous IG treatment that can be administered in one site once per month.
- A final decision from the European Commission usually takes ~60 days.
Fri, Apr. 29, 9:33 AM
- Shire plc (NASDAQ:SHPG) Q1 results ($M): Total Revenues: 1,709.3 (+14.8%); Product Sales: 1,627.3 (+14.3%). Total Revenue Consensus: $1.71B.
- Net Income: 419.0 (+2.1%); Earnings/ADS: 2.12 (+1.4%); CF Ops: 389.5 (-30.6%). Consensus: 3.05.
- Key Product Sales: Vyvanse: 509.2 (+22.2%); Lialda/Mezavant: 168.0 (13.1%); Cinryze: 164.2 (+10.9%); Firazyr: 128.3 (+38.7%); Elaprase: 123.6 (-1.0%); Replagal: 103.2 (+5.8%).
- 2016 Guidance: Product sales growth: 11 - 14% (unch); Non-GAAP EPS growth: 7 - 10% (unch).
- Q2 consensus is earnings/ADS of $3.11 on revenues of $1.76B.
Fri, Apr. 29, 9:12 AM
- Gainers: PRGN +75%. GNW +16%. P +13%. AMZN +12%. SDRL +11%. EXPE +11%. MNST +11%. ROVI +10%. SNMX +9%. LNKD +7%. CRC +7%. DNR+7%. DRYS +7%. TIVO +6%. LGCY +6%. SHPG +5%. GPL +5%.
- Losers: BIOC -22%. GLNG -17%. EPAY -17%. MOH -15%. SRCL -15%. IMGN -14%. SYNA -11%. AKS -8%. HCLP -8%. ALR -6%. GILD -6%. RXDX -6%.
Fri, Apr. 29, 7:35 AM
Thu, Apr. 28, 5:30 PM| Thu, Apr. 28, 5:30 PM | 3 Comments
Thu, Apr. 28, 9:41 AM
Thu, Apr. 28, 8:04 AM
Wed, Apr. 27, 5:30 PM
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Thu, Apr. 21, 5:11 PM
- Baxter International (NYSE:BAX) commences an offer to exchange up to 12.8M shares of Baxalta (NYSE:BXLT), representing a 1.9% stake, that are currently owned by Baxter for common Baxter shares. Following the offer, Baxalta will be wholly independent.
- Baxter shareholders should receive ~$107.52 of Baxalta common stock for every $100 of Baxter stock tendered. The offer will expire at 11:59 pm ET on May 18, unless extended or terminated.
- Baxter currently holds a total of 30,506,097 shares of Baxalta (4.5% stake). It intends to make a contribution to its pension fund or distribute the shares as a special dividend to stockholders for all the shares not tendered, thereby reducing its stake in Baxalta to zero.
- If Shire's (NASDAQ:SHPG) takeover of Baxalta is finalized, each BXLT share will be converted to the right to receive both $18.00 in cash and 0.1482 of an American Depositary Share (ADS) of Shire. BXLT shareholders also have the option to convert each share into 0.4446 of a Shire ADS. The merger should be consummated in early June.
- BXLT closed today at $41.08, BAX at $43.01.
- Update: In a May 4 press release, Baxter announced that it increased the size of the exchange to 13,360,527 shares. All other terms and conditions remained unchanged.
- Update: The final exchange ratio was 1.1591, announced on May 17.
Wed, Apr. 20, 11:18 AM
- According to Leerink's Geoff Porges, drug makers appear to be taking little heed to politicians' outcries over high prices. In a research note, he says, "The price increases for established brands across our coverage have been substantial indeed. To the surprise of many investors, it now appears these price increases are likely to flow through to actual sales growth, with such growth more than offsetting any volume weakness in Q1 and resulting in significant positive revenue surprises for those companies when they report Q1 results."
- He cites Johnson & Johnson's (JNJ +0.8%) Q1 results released yesterday. Its total business was flat (+0.6%) but its pharmaceuticals unit was up 12.9%. His analysis showed as much as 90% of the list price increases are flowing through to reported sales, some as high as 100%.
- Over the past year, Amgen (AMGN +0.7%) increased its drug prices 8 - 28%, Gilead Sciences (GILD +0.9%) 10 - 18% for its HIV drugs and Biogen (BIIB -1.6%) 10 - 18%, according to Mr. Porges.
- Biogen reports tomorrow. Eli Lilly (LLY -0.3%), Baxalta (BXLT -1.4%), AbbVie (ABBV +0.9%), Celgene (CELG +0.4%), Bristol-Myers Sqibb (BMY +0.3%) and Shire (SHPG -1.6%) report next week. Pfizer (PFE +1%) and Merck (MRK -0.2%) report the week after. Amgen (AMGN +0.7%) is due to report shortly as is Gilead.
Fri, Apr. 15, 3:37 AM
- Baxalta (NYSE:BXLT) shares fell more than 5% in extended trading after the company announced a special shareholders meeting on May 27 to vote on its merger with Shire (NASDAQ:SHPG).
- Baxalta would benefit from a lower tax rate if taken over by Shire, and the enlarged company could generate $20B in sales by 2020, with as many as 30 new drugs to launch over five years.
- Update: On May 23, preliminary results show that holders of 6.1% of BXLT shares (41,803,203) elected to receive Shire ordinary shares instead of Shire ADSs. Shires' offer for Baxalta is $18 in cash plus either 0.1482 of a Shire ADS (1 ADS = three ordinary shares) or 0.4446 of a Shire ordinary share.
Wed, Apr. 6, 3:08 PM
Wed, Apr. 6, 1:45 PM
- Gilead Sciences' (GILD +2%) acquisition of Nimbus Therapeutics for as much as $1.2B appears to have investors in a lather over other developers of therapies to treat nonalcoholic steatohepatitis (NASH), especially Galmed Pharmaceuticals (GLMD +38.3%).
- NASH-related tickers: (MNOV +0.4%)(RGLS +4.8%)(ICPT +4.4%)(CNAT +10.9%)(VBLT +3%)(GALT +2%)(TBRA -0.1%)(OTCPK:ISLT)(SHPG +7.2%)(RPTP +3.6%)(OTCPK:GNFTF -0.9%)(CANF +11.8%)
- Read now NASH Drugs: A Comprehensive Review Of Current Clinical Trials
Shire Plc is a biopharmaceutical company, which focuses on developing and marketing innovative medicines for patients with rare diseases and other conditions. It engaged in the research, development, licensing, manufacturing, marketing, distribution and sale of innovative specialist medicines to... More
Industry: Drug Manufacturers - Major
Country: United Kingdom
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