A roundup of news to watch for Tuesday's trading...
Illumina Inc. (ILMN): Volume has been impressive for Illumina (ILMN) over the past few trading days after Illumina's board rejected a buyout offer from Roche Holding AG (RHHBY) for $51 per share. The rejection was unanimous and followed a previous offer of $44.50 per share, a far cry from where ILMN shares traded late last year after an earnings miss sent them tumbling.
The bid is a hostile one, meaning it was unsolicited, but it looks like Illumina intends to stand firm.
Regardless, the share price should continue to trade right around the area of the offer, but the story could remain in the headline for some time, especially if the bidding leads to real negotiations.
Keryx Biopharmaceuticals (KERX): Shares of Keryx (KERX) dropped another five percent at the open on Tuesday followed a doomsday of trading on Monday when the company announced a failed Phase III trial for Perifisone, an oral anti-cancer drug that was partnered with Aeterna Zentaris (AEZS).
Although Keryx has a backup plan with Zerenex, trial results for that drug are not due until late this year and the drug does not have the market potential that Perifisone would have.
Investors bailed in large volumes Monday, and the volumes at Tuesday's open looks to bring more of the same.
Amylin Pharmaceuticals (AMLN): Following a recent price run that materialized after a buyout offer by Bristol-Myers Squibb Company (BMY) last week for $22/share, Amylin was still in the news this week after the company announced that it had completed its Biologics License Application submission to the FDA for the use of metreleptin to treat diabetes and/or hypertriglyceridemia in pediatric and adult patients with rare forms of lipodystrophy.
Barring a bidding war for this company, the best gains have most likely already been had, at least for the time being.
Human Genome Sciences (HGSI): Human Genome opened the day on Tuesday five percent higher after announcing that the company is entitled to fees and milestone payments that could amount to as much as $183 mln-- including $33.0 mln received to date -- in addition to single-digit net royalties on worldwide sales if GlaxoSmithKline's (GSK) albiglutide is commercialized.
Albiglutide was created by HGS using its proprietary albumin-fusion technology, and was licensed to GSK in 2004, according to an HGSI press release.
This is news now because albiglutide Phase III results are close to being finalized and the licensing agreement adds some additional inherent value to Human Genome.
Take bets for when the next GSK-HGSI buyout talk circulates the wires?
Also worth watching...
SiriusXM (SIRI) hit a $2.40 close on Monday then dipped at Tuesday's open. The company's relationship with Liberty Media is the story to watch as Liberty is looking to take up a majority stake...Biovest International (BVTI) and Accentia Biopharmaceuticals (ABPI) are both playing with buy zone territory, if recent trading trends is to be an indicator. Sporadic Biovax updates usually lead to a temporary price spike in both stocks, making decent trading opps out of shares of BVTI bought for less than a half dollar or ABPI shares for forty or below...Titan Pharmaceuticals (TTNP) ever closer to the dollar mark...Nuvo Research (NRIFF) back over a dime...Happy Trading.
Disclosure: Long TTNP, NRIFF.
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