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Fly News Breaks for May 13, 2019
LCI, MYL, RDY, NVS, TEVA, PFE, AMRX
May 13, 2019 | 09:17 EDT
Wells Fargo analyst David Maris believes the lawsuit by 44 states against 20 generic drugmakers will weigh on generic drug stocks this week and remain an "overhang issue for some time." Actual penalties and damages are impossible to calculate, but could be material, Maris tells investors in a research note. The analyst spoke to the Connecticut attorney general's office this morning and learned they are preparing for trial in these cases. Language the attorney general has used, such as "unprecedented" and his desire to clawback all gains from collusion, should be indicative of the states' intent, Maris writes. He believes that for a sector that is generally highly levered, and with some companies named already facing an overhang from opioid litigation like Teva (TEVA), this is "especially unwelcome news."
News For TEVA;MYL;AMRX;NVS;LCI;PFE;RDY From the Last 2 Days
PFE
Jun 18, 2019 | 10:02 EDT
Shares of Biohaven Pharmaceutical (BHVN) plunged in morning trading after the company filed to sell stock. The stock sale... To see the rest of the story go to thefly.com. See Story Here
PFE
Jun 18, 2019 | 07:37 EDT
SunTrust analyst Peter Lawson downgraded Array BioPharma (ARRY) to Hold but raised his price target to $48 from $32 after the company announced that it is being acquired by Pfizer (PFE) at that price. The analyst notes that the 79% premium to the company's last closing price looks like a "fair valuation" based on his analysis of past comps and his M&A valuation model. Lawson adds that the the deal is "encouraging" within the biotech space with positive implications for other potential acquisition targets such as Agios Pharmaceuticals (AGIO) and Mirati herapeutics (MRTX) along with companies with strong chemistry such Incyte Corporation (INCY) and Exelixis (EXEL).
PFE
Jun 17, 2019 | 16:21 EDT
Stocks drifted higher for much of Monday's session ahead of the Fed's FOMC meeting, which kicks off tomorrow and concludes on Wednesday. The central bank... To see the rest of the story go to thefly.com. See Story Here
PFE
Jun 17, 2019 | 12:43 EDT
Stocks are in a relative holding pattern, but with an upward bias through the morning hours, ahead of the Fed's FOMC meeting, which kicks off tomorrow and concludes on Wednesday. Investors have been... To see the rest of the story go to thefly.com. See Story Here
PFE
Jun 17, 2019 | 08:20 EDT
After Pfizer (PFE) announced an agreement to acquire Array BioPharma (ARRY) for $48 per share in cash, Stifel analyst Stephen Willey said he views the deal as a "fitting," "logical" and "appropriate" conclusion for Array shareholders and he would be "very surprised" if another suitor tried to compete with a higher priced offer. He believes a "very fair valuation" is implied by the $11.4B price Pfizer has agreed to pay, Willey added. He also sees the deal announcement providing a tailwind for the sector, specifically for small-to-mid cap oncology companies that are "perceived to have achieved some meaningful level of de-risking." As examples, he offers Exelixis (EXEL) and Blueprint Medicines (BPMC), though Willey added that a potentially shortened exclusivity runway could make a deal for Exelixis "a bit harder for a strategic to rationalize."
TEVA
Jun 17, 2019 | 07:08 EDT
Citi analyst Liav Abraham cut her price target for Teva Pharmaceutical to $13 from $23 after exploring some of the key questions and issues associated with the company's opioid litigation. The analyst, who keeps a Buy rating on the shares, acknowledges that the "highly complex nature of the litigation implies that certain questions remain unanswered."
PFE
Jun 17, 2019 | 07:01 EDT
Pfizer (PFE) and Array BioPharma (ARRY) announced that they have entered into a definitive merger agreement under which Pfizer will acquire Array. Pfizer has agreed to acquire Array for $48.00 per share in cash, for a total enterprise value of approximately $11.4B. The boards of both companies have approved the merger. Upon the close of the transaction, Array's employees will join Pfizer and continue to be located in Cambridge, Massachusetts and Morrisville, North Carolina, as well as Boulder, Colorado, which becomes part of Pfizer's oncology research & development network in addition to La Jolla, California and Pearl River, New York. Pfizer expects to finance the majority of the transaction with debt and the balance with existing cash. The transaction is expected to be dilutive to Pfizer's adjusted diluted EPS by 4c-5c in 2019, 4c-5c in 2020, neutral in 2020 and accretive beginning in 2022, with additional accretion and growth anticipated thereafter. Pfizer will provide any appropriate updates to its current 2019 guidance in conjunction with its Q3 earnings release. Under the terms of the merger agreement, a subsidiary of Pfizer will commence a cash tender offer to purchase all outstanding shares of Array common stock for $48.00 per share in cash for a total enterprise value of approximately $11.4B. The closing of the tender offer is subject to customary closing conditions, including regulatory approvals and the tender of a majority of the outstanding shares of Array common stock. The merger agreement contemplates that Pfizer will acquire any shares of Array that are not tendered into the offer through a second-step merger, which will be completed promptly following the closing of the tender offer. Pfizer expects to complete the acquisition in the second half of 2019.
PFE
Jun 17, 2019 | 06:49 EDT
Pfizer (PFE) and Array BioPharma (ARRY) announced that they have entered into a definitive merger agreement under which Pfizer will acquire Array, a commercial stage biopharmaceutical company focused on the discovery, development and commercialization of targeted small molecule medicines to treat cancer and other diseases of high unmet need. Pfizer has agreed to acquire Array for $48 per share in cash, for a total enterprise value of approximately $11.4B. The Boards of Directors of both companies have approved the merger. Upon the close of the transaction, Array's employees will join Pfizer and continue to be located in Cambridge, Massachusetts and Morrisville, North Carolina, as well as Boulder, Colorado, which becomes part of Pfizer's Oncology Research & Development network in addition to La Jolla, California and Pearl River, New York. Pfizer expects to finance the majority of the transaction with debt and the balance with existing cash. The transaction is expected to be dilutive to Pfizer's Adjusted Diluted EPS by 4c-5c in 2019, 4c-5c in 2020, neutral in 2021, and accretive beginning in 2022, with additional accretion and growth anticipated thereafter. Pfizer will provide any appropriate updates to its current 2019 guidance in conjunction with its third quarter 2019 earnings release. Under the terms of the merger agreement, a subsidiary of Pfizer will commence a cash tender offer to purchase all outstanding shares of Array common stock for $48 per share in cash for a total enterprise value of approximately $11.4B. The closing of the tender offer is subject to customary closing conditions, including regulatory approvals and the tender of a majority of the outstanding shares of Array common stock. The merger agreement contemplates that Pfizer will acquire any shares of Array that are not tendered into the offer through a second-step merger, which will be completed promptly following the closing of the tender offer. Pfizer expects to complete the acquisition in the second half of 2019.