Seeking Alpha's Biotech Weekly: Billion Dollar Deals, Gilead Earnings Preview, And More

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Includes: ASPX, BAYRY, BHC, EXEL, GILD, HPTX, HZNP, MDT, MNKD, NUVA, ONVO, TEVA, VVUS, ZTS
by: SA Editor Mike Taylor, CFA

Summary

Every Friday, SA highlights some of the week's insightful pieces of opinion and analysis as well as noteworthy Breaking News stories.

This week, contributors took a look at Gilead, MannKind, Exelixis, and others in the biotech/healthcare sector.

What should Seeking Alpha be tracking in the biotech world? Leave a comment to let us know. Or better yet, submit an article of your own.

Every Friday, Seeking Alpha's Biotech Weekly highlights the editors' picks of the week's Seeking Alpha analysis, as well as a review of the top Breaking News stories.

See something here that deserves further analysis? We are always looking for new contributors and submissions in the biotech/healthcare space. You can submit an article here to become a contributor. Joining Seeking Alpha's community of writers has substantial benefits:

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And now, on to the week's news and analysis.

Seeking Alpha Analysis You Should Check Out

Here are some of the top breaking news items of the week.

Teva takes out Auspex Pharmaceuticals for $101 per share in all-cash deal; shares up 42% premarket

  • Teva Pharmaceutical Industries (NYSE:TEVA) acquires Auspex Pharmaceuticals (NASDAQ:ASPX) for $101 per share ($3.2B) in an all-cash transaction. The deal will enhance Teva's revenue and earnings growth profile as well as strengthen its central nervous system franchise.

Horizon Pharma to acquire Hyperion Therapeutics for $1.1B

  • Horizon Pharma (NASDAQ:HZNP) has agreed to acquire all of the issued and outstanding shares of Hyperion Therapeutics' (NASDAQ:HPTX) common stock for $46 per share in cash or approximately $1.1B on a fully diluted basis.

FDA clears expanded label for Medtronic's CoreValve

  • The FDA approves a new indication for Medtronic's (NYSE:MDT)CoreValve System, a self-expanding device for aortic value replacement, to treat patients who have had a tissue aortic valve replacement and are in need of a second one, called "valve-in-valve" replacement.

Pershing Square remains focused on healthcare

  • Even after his big win with Allergan, Bill Ackman's Pershing Square maintains significant exposure (~50%) to the healthcare sector. In a recent regulatory filing, Pershing disclosed a 19.5M share stake in Valeant Pharmaceuticals (VRX -0.2%) valued at ~$3.83B, making it the largest position in its equity portfolio. It also has a 41.8M share stake in Zoetis (ZTS -0.2%) valued at almost $2B.

NuVasive boots CEO over rogue expenses

  • NuVasive (NUVA -3%) CEO Alex Lukianov was forced to resign after an internal investigation found that he failed to comply with the firm's expense reimbursement and other policies. According to Director Jack Blair, the amounts involved are immaterial to the company's financial results but Mr. Lukianov's actions "in this regard were not representative of the high standards by which NuVasive operates. We believe this leadership transition is appropriate and in the best interests of the Company and all of our stakeholders."

Organovo presents data on 3D kidney tissue; shares up 10% premarket

  • Micro cap Organovo (NASDAQ:ONVO) is up 10% premarket on average volume in response to its announcement that it presented data on in vitro three-dimensional kidney tissue at the Experimental Biology conference in Boston.

Rumored price for Bayer's diabetes device business continues to slide

  • The latest buzz surrounding Panasonic Healthcare's rumored bid for Bayer's (OTCPK:OTCPK:BAYRY +1%) diabetes device business pegs the price at $830M, down substantially from earlier estimates as high as $2.5B.

Other stories of note:

Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it. The author has no business relationship with any company whose stock is mentioned in this article.

Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.