Tue, Mar. 10, 3:51 PM
- Traders spread their love beyond the rumored acquisition target-stoked up move of Acadia Pharmaceuticals (ACAD +17.7%) to Geron (GERN +12.3%). Shares are up on a whopping 24M shares. Speculators are betting that Geron will be taken out, possibly by Johnson & Johnson (JNJ -0.8%), after the latter was outbid by AbbVie (ABBV +0.9%) for Pharmacyclics (PCYC).
- Previously: Geron gets boost from AbbVie-Pharmacyclics deal (March 5)
- Previously: Acadia Pharma now +17.7% as it cancels out of another conference (March 10)
Thu, Mar. 5, 12:15 PM
- Small cap Geron (GERN +17.8%) jumps on a 3x surge in volume as traders take positions speculating on the potential for a move by imetelstat collaboration partner and exclusive licensee Johnson & Johnson (JNJ +0.8%) after it was apparently outbid by AbbVie (ABBV -3.5%) for Pharmacyclics (PCYC +10.5%).
- SA Contributor Stock Doctor recently published an article on why Geron may be worth a close look.
- Previously: Geron wins deal to develop blood disorder drug, could get $935M (Nov. 13, 2014)
Thu, Mar. 5, 8:52 AMAbbVie's high-priced takeout of Pharmacyclics bodes well for other biotechs with high potential drugs
- AbbVie's (NYSE:ABBV) extraordinarily generous buyout of Pharmacyclics (NASDAQ:PCYC) is a crystal clear example of how keen big pharma is to boost its prospects with biotech drugs with blockbuster potential. The transaction's $20B tab, backing out PCYC's $1B cash balance, values Imbruvica (ibrutinib) at $40B since Pharmacyclics' commercial partner Johnson & Johnson (NYSE:JNJ) gets 50% of Imbruvica's revenue. This implies a multiple of almost 7x Imbruvica's projected peak sales of $6B. By comparison, Amgen's (NASDAQ:AMGN) takeout of Onyx Pharma and Sanofi's (NYSE:SNY) takeout of Genzyme were both at 5x premiums.
- The looming patent expiration for Humira ($12.5B in sales the past four quarters) undoubtedly provided AbbVie extra incentive to get the deal done.
- Adding 50% of Imbruvica's sales to AbbVie's top line should increase its revenue growth 3 - 7% and EPS growth 8 - 11% through 2020.
- According to RBC analyst Michael Yee, other biotechs on the big ticket acquisition radar are: BioMarin Pharmaceuticals (NASDAQ:BMRN), Dyax (NASDAQ:DYAX), Esperion Therapeutics (NASDAQ:ESPR), United Therapeutics (NASDAQ:UTHR), Vertex Pharmaceuticals (NASDAQ:VRTX), Intercept Pharmaceuticals (NASDAQ:ICPT), Juno Therapeutics (NASDAQ:JUNO), Kite Pharma (NASDAQ:KITE), PTC Therapeutics (NASDAQ:PTCT) and Receptos (NASDAQ:RCPT).
Wed, Mar. 4, 4:32 PM
- Pharmacyclics (NASDAQ:PCYC) jumps in apparent response to rumors that Johnson & Johnson (NYSE:JNJ) is close to making a premium bid for the $17B biotech. Shares were up 6% in today's session on double normal volume and are up another 2% after hours.
- The two companies have a history of working together. Pharmacyclics and J&J's Janssen Biotech inked a collaboration deal in late 2011 to develop PCI-32765 for a variety of blood cancers.
- The transaction would be the largest for J&J since its takeout of Synthes in 2011 for $21.3B.
Mon, Mar. 2, 8:55 AM
- As rumored, Johnson & Johnson (NYSE:JNJ) sells its underperforming Cordis unit to Cardinal Health (NYSE:CAH), which picks up the interventional vascular technology business for $1.99B. The transaction is expected to close by end of the year.
- Both stocks are unchanged premarket.
- Previously: J & J rumored to have found a buyer for Cordis unit (Feb. 23)
Wed, Feb. 25, 1:43 PM
Tue, Feb. 17, 5:58 PM
- Boston Scientific (NYSE:BSX) +11.8% AH after settling the $7.2B lawsuit brought by Johnson & Johnson (NYSE:JNJ) for $600M, ending litigation that has nagged BSX since its 2006 acquisition of Guidant.
- JNJ had sought damages after accusing Guidant of breaching their merger agreement by going with the higher offer from BSX.
- BSX says it admits no liability in the settlement, and will record a $600M charge in its Q4 2014 financial results.
Thu, Feb. 12, 12:56 PM
- Johnson & Johnson (JNJ -1.6%) slumps on double normal volume after U.S. Patent Office upholds the rejection of its Remicade 2018 patent. Biosimilar makers rally as a result, including thinly-traded nano cap Epirus Biopharmaceuticals (EPRS +15.1%) whose lead product is BOW015, a biosimilar version of Remicade (infliximab).
- Biosimilar-related tickers: (PFE +1.3%)(HSP +0.1%)(AMGN -0.4%)(CHRS +0.2%)(PFNX +14.5%)(NVS -0.2%)
Thu, Jan. 15, 5:52 PM
- DepoMed (NASDAQ:DEPO) +3.7% AH after agreeing to acquire the U.S. license rights to the painkiller Nucynta from Johnson & Johnson (NYSE:JNJ) unit Janssen Pharmaceuticals for $1.05B.
- DEPO says it plans to reintroduce the drug, expand its sales force and promote Nucynta for both chronic pain and nerve damage caused by diabetes; DEPO says Nucynta has patent protection until 2022.
- DEPO, which previously projected 2014 sales of $232M-$242M, says the deal will increase its 2014 pro forma net product revenue guidance by ~2.5x.
Wed, Jan. 14, 8:25 AM
- Ziopharm (NASDAQ:ZIOP) jumps 50% premarket on robust volume in response to its announcement of an exclusive license deal with partner Intrexon (NYSE:XON) (+12%) with The University of Texas MD Anderson Cancer Center covering technology and intellectual property related to non-viral adoptive cellular cancer immunotherapies. The technologies originate from two researchers who have pioneered the design and clinical investigation of chimeric antigen receptor (CAR) T cell therapies for the potential treatment of cancer using non-viral gene integration platforms.
- The two researchers are Laurence Cooper, M.D., Ph.D, professor of pediatrics at MD Anderson who has expertise in immunotherapies and Perry Hackett, Ph.D., professor within the College of Biological Sciences at Minnesota, who discovered and developed a system called Sleeping Beauty, a non-viral DNA plasmid-based gene transfer system.
- The deal brings the CAR-T technology together Intrexon's technology suite and Ziopharm's clinically tested RheoSwitch Therapeutic System interleukin-12 modules. Up to five CARs are expected to enter the clinic this year and off-the-shelf programming initiating in 2016.
- Under the terms of the agreement, MD Anderson will receive $100M from the companies in the form of $50M of common stock from each firm. In addition, the companies have committed $15M - 20M over each of the next three years for researching and developing the technologies.
- CAR-T therapies are the "next big thing" in cancer treatment.
- Related tickers: (NASDAQ:KITE) (NASDAQ:JUNO) (NASDAQ:AMGN) (NYSE:NVS) (NYSE:JNJ)
Thu, Jan. 8, 11:53 AM
- Investors show thinly-traded nano cap Epirus Biopharmaceuticals (EPRS +27.9%) some love after yesterday's positive Ad Comm vote for Sandoz's biosimilar filgrastim. Shares are up on a 6x surge in volume albeit on turnover of only 150K.
- Epirus' lead product is BOW015 (infliximab), a biosimilar to Janssen's (JNJ +0.8%) Remicade. The product is currently marketed in India by Ranbaxy Laboratories Limited. A global Phase 3 trial to support regulatory submissions in other markets will commence this year.
- Previously: FDA Ad Comm gives thumbs up to Sandoz biosimilar filgrastim (Jan. 7)
Mon, Jan. 5, 1:48 PM
- Isis Pharmaceuticals (ISIS +8.1%) and Janssen Biotech (JNJ -0.6%) enter into a global collaboration to discover and develop antisense drugs to treat autoimmune disorders of the gastrointestinal (GI) tract. The partnership brings together Isis' RNA-targeted technology platform with Janssen's expertise in autoimmune disorders and therapeutic formulation.
- Under the terms of the agreement, Isis will receive an upfront payment of $35M and will be eligible for almost $800M in development, regulatory and sales milestones and license fees. It will also receive tiered royalties that average double digits on commercial sales.
Nov. 13, 2014, 5:55 PM
- Geron (NASDAQ:GERN) +30.7% AH on news it entered into an exclusive worldwide license and collaboration agreement to develop its blood disorder drug imetelstat with Johnson & Johnson (NYSE:JNJ) unit Janssen Biotech.
- GERN says it will receive $35M upfront and could receive as much as $900M more as the drug is tested and if it is approved by regulators and reaches certain sales targets; it also would get royalties on sales of imetelstat.
- The companies plan to start a mid-stage trial of imetelstat in 2015; they also want to study the drug as a treatment for other blood diseases.
Feb. 10, 2014, 7:56 AM
- Addex Therapeutics' (ADDXF) ADX71149 treatment for anxious depression was not more effective than a placebo in a Phase IIa trial.
- The results don't "support the further development of ADX71149 in anxious depression," Addex says, although the exploration of the drug for other purposes "remains of potential interest."
- Johnson & Johnson (JNJ) unit Janssen conducted the trial.
- The failure is a major blow, as anxious depression is a leading cause of disability worldwide.
- Addex shares are -27% in Zurich. (PR)
Jan. 28, 2014, 5:15 PM
- Medivation (MDVN) +8.2% AH after its Xtandi drug for advanced prostate cancer was found to significantly delay progression of the disease and extend survival in a large, late stage study of patients who had not yet received chemotherapy.
- Xtandi (enzalutamide) already is approved to treat patients whose prostate cancer has spread and who had previously been treated with chemotherapy; approval for use prior to chemo could greatly expand the available patient population, significantly boost sales, and enable the drug to compete with Johnson & Johnson's (JNJ) Zytiga.
- Sanford Bernstein says annual Xtandi sales eventually could exceed $3B with a pre-chemo approval.
Jan. 21, 2014, 11:36 AM
- Lower today amid a disappointing full year outlook, Johnson & Johnson (JNJ -1.7%) is a buy on the dip says RBC's Glen Novarro. The weak early-year guidance sets management up to beat and raise throughout 2014. "We continue to recommend [J&J] based on strong growth in pharmaceuticals and under-appreciated operating margins."
- Earlier: Management guides to full-year EPS of $5.75-$5.85 vs. consensus $5.86.
JNJ vs. ETF Alternatives
Johnson & Johnson is a holding company, which is engaged in the research and development, manufacture and sale ofproducts in the health care field within its Consumer, Pharmaceutical and Medical Devices, and Diagnostics business segments.
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