Leerink believes Teva's (TEVA) needs to raise its bid for Mylan (MYL) to $85-$88 per share, and cautions that even then the deal may not get done. The firm says that while it believes the combination makes strategic and financial sense, hostile bids have low success rates. Leerink recommends buying both Teva and Mylan shares.

Vanda Pharmaceuticals "announced that the Supreme Court denied Vanda's petition for a writ of certiorari in its HETLIOZ(R) Abbreviated New Drug Application litigation against Teva Pharmaceuticals USA, Inc., Apotex Inc. and Apotex Corp." CEO Mihael H. Polymeropoulos stated: "We are disappointed that the Supreme Court has decided not to hear our case and clarify the lower court standard for obviousness in patent law. However, we are pleased that our case has drawn attention to an area of law that has broad and significant implications in life sciences innovation."