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BAX

Baxter

$69.18

0.77 (1.13%)

, MNK

Mallinckrodt

$22.90

-0.5 (-2.14%)

07:46
01/08/18
01/08
07:46
01/08/18
07:46

Baxter to acquire two hemostat, sealant products from Mallinckrodt

Baxter International (BAX) announced an agreement to acquire two hemostat and sealant products from Mallinckrodt (MNK): RECOTHROM Thrombin topical, the first and only stand-alone recombinant thrombin, and PREVELEAK Surgical Sealant, which is used in vascular reconstruction. The acquisition also includes PREVELEAK, a surgical sealant designed to seal suture holes formed during surgical repair of the circulatory system and to reinforce sutured connections between blood vessels. PREVELEAK augments Baxter's portfolio of complementary hemostats, sealants and tissue products used in cardiovascular and other surgeries, offering surgeons additional clinically differentiated products to address patients' varying needs. PREVELEAK is approved in the United States and European Union. Sales of the proposed acquired products totaled approximately $56M in the twelve months preceding September 29, 2017. Upon closing, the deal is expected to be modestly accretive to Baxter's 2018 adjusted earnings and increasingly accretive thereafter. Under the terms of the agreement, Baxter will acquire RECOTHROM and PREVELEAK for an upfront payment of approximately $153M and potential contingent payments in the future. The transaction is expected to close in the first half of 2018, subject to the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and other customary closing conditions.

BAX

Baxter

$69.18

0.77 (1.13%)

MNK

Mallinckrodt

$22.90

-0.5 (-2.14%)

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BAX Baxter
$69.18

0.77 (1.13%)

01/02/18
BOFA
01/02/18
UPGRADE
Target $73
BOFA
Buy
Baxter upgraded to Buy at BofA/Merrill
As previously reported, BofA/Merrill upgraded Baxter to Buy from Neutral and increased its price target to $73 from $64. Analyst Bob Hopkins expects Baxter to put its $7B balance sheet liquidity to work through M&A and buybacks, which should set the stage for improving revenue growth in 2019-20.
01/02/18
01/02/18
UPGRADE

On The Fly: Top five analyst upgrades
Catch up on today's top five analyst upgrades with this list compiled by The Fly: 1. L Brands (LB) upgraded to Outperform from Neutral at Baird with analyst Mark Altschwagern saying he believes the company is on track to meet or exceed December comparable sales and fourth quarter expectations. 2. Lennar (LEN) upgraded to Outperform from Market Perform at Wells Fargo with analyst Stephen East citing his post-tax reform earnings per share estimate but without the CalAtlantic (CAA) acquisition included. 3. Disney (DIS), Netflix (NFLX), AMC Networks (AMCX), and Discovery (DISCA) were upgraded to Outperform from Neutral at Macquarie. 4. Abbott (ABT) was upgraded to Overweight from Equal Weight at Morgan Stanley and to Overweight from Neutral at JPMorgan. 5. Baxter (BAX) was upgraded to Buy from Neutral at BofA/Merrill and to Overweight from Neutral at JPMorgan. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here.
01/03/18
RAJA
01/03/18
UPGRADE
Target $73
RAJA
Outperform
Baxter upgraded to Outperform, view as a core holding at Raymond James
Raymond James analyst Lawrence Keusch upgraded Baxter to Outperform from Market Perform and established a $73 price target saying he views it as a core holding. Keusch has high confidence in management execution, an emerging new product portfolio, and balance sheet optionality. He sees organic cc revenue growth in the 4% range driven by geographic expansion after recent underperformance in Europe, as well as continued growth in Asia. Further, after a period of underinvestment, the R&D pipeline as been revitalized and should begin to accelerate growth in 2019 and beyond. Finally, the analyst said Baxter has considerable balance sheet flexibility with $7-$8B available for bolt-on acquisitions.
01/03/18
EVER
01/03/18
INITIATION
Target $71
EVER
Outperform
Baxter initiated with an Outperform at Evercore ISI
Evercore ISI analyst Vijay Kumar started Baxter with an Outperform rating and $71 price target. The analyst thinks Baxter should be able to meet or beat 2018 Street expectations and its balance sheet strength gives it over $10B in capacity for M&A, he tells investors.
MNK Mallinckrodt
$22.90

-0.5 (-2.14%)

12/29/17
CANT
12/29/17
NO CHANGE
Target $42
CANT
Overweight
Cantor doesn't see competing bid to Mallinckrodt's for Sucampo
Citing the merger documents and his own diligence, Cantor Fitzgerald analyst Louise Chen finds it unlikely that another company would step in for Sucampo Pharmaceuticals (SCMP) as a counter to Mallinckrodt's (BID). Further, Mallinckrodt discounted the value ascribed to Sucampo's pipeline assets, but having a product like Amitiza allows it to limit the purchase price risk, Chen told investors yesterday in a research note. She does not think the January 28 FDA action date for Sucampo's Amitiza pediatric supplemental drug application should be a meaningful stock catalyst. The analyst keeps an Overweight rating on Mallinckrodt with a $42 price target.
01/02/18
LEER
01/02/18
INITIATION
Target $26
LEER
Market Perform
Mallinckrodt initiated with a Market Perform at Leerink
Leerink analyst Ami Fadia initiated Mallinckrodt with a Market Perform and $26 price target.
01/03/18
STFL
01/03/18
NO CHANGE
STFL
Mallinckrodt added to Select List, Jazz Pharmaceuticals removed at Stifel
01/05/18
UBSW
01/05/18
DOWNGRADE
Target $18
UBSW
Neutral
Sucampo downgraded to Neutral from Buy at UBS
UBS analyst Marc Goodman downgraded Sucampo Pharmaceuticals (SCMP) to Neutral to reflect the takeover by Mallinckrodt (MNK). The analyst believes the deal is likely to close without significant issues and upped his price target for the shares to $18 from $15.

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