BMO downgrades Alder after buyout, sees another bidder as unlikely

BMO Capital analyst Matthew Luchini downgraded Alder Biopharmaceuticals (ALDR) to Market Perform from Outperform after the company entered into an agreement to be acquired by Lundbeck (HLUYY) for $18.00 per share in cash plus a $2.00 per share contingent value right. The emergence of another bidder is unlikely and the deal poses little regulatory risk, Luchini tells investors in a research note. The analyst, who lowered his price target for Alder shares to $19.70 from $23, believes the acquisition confirms eptinezumab's role as a differentiated option in the migraine treatment landscape. Alder shares in midday trading are up 83.5% to $18.47.