| Astellas to Acquire OSI Pharma for Around $4B Zacks.com submits: Astellas Pharma recently entered into a definitive agreement to acquire OSI Pharmaceuticals (OSIP) for $57.50 per share, which represents a premium of about 10.6% to Astellas’ earlier offer of $52 per share. The board of directors of both companies approved the all-cash transaction, which values OSI Pharmaceuticals at about $4 billion.Astellas’ bid to acquire OSI Pharmaceuticals first hit headlines on March 2, 2010, when the company announced that its indirect subsidiary, Ruby Acquisition, had commenced a cash tender offer at $52 per share. Prior to expiration of that offer on March 31, 2010, Astellas extended the same through April 23, 2010. Subsequently, Astellas again extended its tender offer until May 17, 2010.Complete Story » seekingalpha.com |
Gilead Sciences: Time to Take Another Look Bret Jensen submits:Company Overview: Gilead Sciences, Inc. (GILD), a biopharmaceutical company, engages in the discovery, development, and commercialization of therapeutics for the treatment of life threatening diseases worldwide. Its products include Truvada, Atripla, Viread, and Emtriva for the treatment of human immunodeficiency virus infection in adults; Hepsera, an oral formulation for the treatment of chronic hepatitis B; AmBisome, a amphotericin B liposome injection to treat serious invasive fungal infections; Letairis, an endothelin receptor antagonist for the treatment of pulmonary arterial hypertension; Ranexa that is used for the treatment of chronic angina; Vistide, an antiviral medication that targets cytomegalovirus retinitis in patients with AIDS; and Cayston, an inhaled antibiotic used as a treatment to enhance respiratory systems. The company’s products also comprise Tamiflu, an oral antiviral for the treatment and prevention of influenza A and B; Macugen, an intravitreal injection for the treatment of neovascular age-related macular degeneration; and Lexiscan, an injection used as a pharmacologic stress agent in radionuclide myocardial perfusion imaging. Prognosis: The stock is trading near its 52 week low and is off over 30% from its late February high. The stock has fallen due to concerns on the expiration of its core HIV drugs later in the decade and the fallout from U.S. Healthcare reform. We believe the reaction has been overdone and the stock at this level offers compelling value.Valuation: GILD is selling for approximately 9 times this year’s consensus earnings and only 8 times next year’s projected earnings. It is selling at the low end of its five year range based on Price/Earnings, Price/Book Value, and Price/Cash Flow. It has a solid balance sheet with no net debtCatalysts: There are several factors that we believe should provide support for a higher stock price in the near and medium term:1. Mid stage HIV pipeline drug data is positive which bodes well for next generation therapies for HIV2. Growth in revenue outside of core HIV market with recent purchases including Myogen and partnerships including the one with Roche on Tamiflu3. Company should continue to acquire growth assets outsides it core HIV franchise4. New stock repurchase plan initiated in January5. Given attractive stable of drugs and the need for the major pharma companies to acquire pipeline, possible takeover target especially given drop in stock price and reasonable valuations6. The environment for drug companies should improve markedly after the mid-term electionsRecommendation(s): Given its growth prospects, low valuations, and reasonable expectations that it can extend its HIV franchise into the next generation of drugs, GILD is undervalued. In our opinion, the stock should be trading at a more reasonable rate of approximately 13-14 times this year’s projected earnings of around $3.60. Our target Price is $47-$51, up from the current price of $33.50.Disclosure: Long GILDComplete Story » seekingalpha.com |
Acorda Therapeutics, Inc. Q2 2010 Earnings Call Transcript Acorda Therapeutics, Inc. (ACOR)Q2 2010 Earnings CallAugust 3, 2010 8:30 AM ETComplete Story » seekingalpha.com |
Quest Diagnostics to Release Third Quarter 2010 Financial Results [PR Newswire] - Quest Diagnostics Incorporated , the world's leading provider of diagnostic testing, information and services, announced today that it will report third quarter 2010 results on Wednesday, October 20, before the market opens. us.rd.yahoo.com |
Quest Diagnostics approves $250M stock buyback [AP] - Medical lab operator Quest Diagnostics Inc. said Wednesday it approved the repurchase of as much as $250 million in stock. us.rd.yahoo.com |