ACADIA Pharmaceuticals (ACAD) shares dropped more than 5% on Wednesday. The stock closed at just under $33. ACAD is now well off its June highs of above $41. The pullback offers a good opportunity to get back into ACAD. Remember that there is a major catalyst coming up later this year, which could provide another boost to ACAD shares.

Teva Pharmaceuticals (TEVA) made a corporate presentation on Wednesday, highlighting the benefits of the Allergan (AGN) deal. TEVA had agreed to acquired Allergan’s generic business in a transaction valued at more than $40 billion. The two companies recently extended the outside date of their deal to October 26 from July 26 (this is the date that the closing must occur). Other amendments include increasing the base working capital adjustment by at least $650M (up to $800M under certain circumstances), adding Actonel (authorized generic) and Carafate (authorized generic) to the list of excluded products and a reduction in the cash consideration to be paid by $221M.

TEVA CEO Erez Vigodman noted the benefits of the transactions include $1.4B in cost synergies and tax savings by the end of 2019. Other pluses by the end of 2019 are: accretion in non-GAAP EPS of 19%, more than $25B in cumulative free cash flow and a return on invested capital of 9.3%. TEVA’s revenue is expected to increase from $19.7 billion to $26.7 billion-$27.8 billion by 2019. EBITDA is expected to grow from $6.6 billion to $10.7 billion-$11.5 billion. Based on the midpoint of the 2019 sales forecast, TEVA currently trades at just 2x sales, which is well below the multiple for major pharmaceutical companies.

Valeant’s Second-Biggest Shareholder Exits- Valeant Pharmaceuticals International (VRX) has seen its second-biggest shareholder exit. Sequoia Fund informed its shareholders in a letter that it exited the position completely by mid-June. The fund noted that following the retirement of its longtime CEO and co-manager Robert Goldfarb in March, the fund’s new leadership elected to sell its entire position in VRX. The fund noted that VRX was its largest position when the year began and the steep decline in VRX’s price has hurt the fund’s performance.

Spectrum’s Allos Settles Folotyn Patent Dispute- Spectrum Pharmaceuticals’ (SPPI) Allos Therapeutics and Fresenius Kabi USA have entered into settlement agreement to resolve their patent litigation relating to Folotyn (pralatrexate injection).  According to the terms of the settlement, Fresenius will be permitted to market a generic version of Folotyn in the U.S. on November 15, 2022 or earlier under certain circumstances.

Novocure (NVCR) announced that the FDA has approved its second-generation Optune system that is half the size and weight as the original. Optune is a non-invasive device that creates alternating "wave-like" electric fields called Tumor Treating Fields (TTFields). It delivers its therapy to brain tumors through four transducer arrays placed on the scalp.

No patents to report.

Eli Lilly (LLY) and Boegringer Ingelheim have entered into a new collaboration on a Phase 1b study. The study will assess the safety and tolerability of Abemaciclib (LY2835219), Lilly's cyclin-dependent kinase (CDK) 4 and CDK 6 inhibitor, in combination with BI 836845, Boehringer Ingelheim's insulin-like growth factor (IGF)-1/IGF-2 ligand neutralizing antibody, in patients diagnosed with HR+, HER2- metastatic breast cancer (mBC). Enrollment is scheduled to begin in the fourth quarter.

RedHill Biopharma (RDHL) announced that it has signed a research collaboration agreement with the U.S. National Institute of Allergy and Infectious Diseases (NIAID), part of the National Institutes of Health (NIH), intended to evaluate RedHill’s proprietary experimental therapy for the treatment of Ebola virus disease. The new research collaboration follows encouraging results from preliminary non-clinical studies conducted in conjunction with the NIAID using RedHill’s proprietary experimental therapy. The objectives of the new research collaboration between RedHill and NIAID are to evaluate survival outcome and assess disease severity through comparison of viral loads and cytokine levels in active treatment arms and placebo. If successful, this study is intended to provide supportive data for discussions with the U.S. Food and Drug Administration (FDA) for potential use of the Animal Rule pathway for approval.

No secondary offerings to report.

AzurRX Biopharma has filed for a $15 million IPO. The company plans to list its shares on the NASDAQ under the ticker symbol AZRX. Based in Brooklyn, New York, AzurRX Biopharma is engaged in the development of non-systemic biologics for gastrointestinal disorders.

Motif Bio has filed for a $40 million U.S. IPO. The company plans to list its shares on the NASDAQ under the ticker symbol MTFB. Motif is already listed on the London Stock Exchange’s AIM under the symbol MTFB. Based in New York City, Motif is engaged in the development of novel antibiotics effective against multi-drug resistant bacteria.

IntelliPharmaceutics (IPCI) reported its second-quarter financial results, posting a loss of $0.08 per share. The company’s loss was a penny below the consensus forecast. IPCI reported revenue of $0.56 million, down 55.9% on a year-over-year basis. This was in-line with the consensus forecast.

Company (Ticker) Brokerage Action Recommendation Price Target My Price Target
Alkermes Plc (ALKS) Barclays Plc Price Target Raised Overweight From $50 to $65 N/A
Alexion Pharmaceuticals (ALXN) SunTrust Banks Price Target Cut Buy From $220 to $197 N/A
Amgen (AMGN) Jefferies Group Reiterate Buy

$187

$250

Amgen (AMGN) Bank of America Corp. Reiterate Hold

$182

$250

Biota Pharmaceuticals (BOTA) HC Wainwright Initiation Buy

$5

N/A
Biogen (BIIB) Jefferies Group Reiterate Buy N/A

$420

Cytokinetics (CYTK) FBR & Co. Reiterate Outperform N/A N/A
Kite Pharma (KITE) Canaccord Genuity Reiterate Buy

$75

N/A
Kite Pharma (KITE) Stifel Nicolaus Upgrade/Price Target Raised From Hold to Buy From $63 to $74 N/A
Loxo Oncology (LOXO) Cowen and Company Reiterate Buy N/A N/A
Merck & Co. (MRK) Credit Suisse Group Reiterate Hold

$59

$70

Rigel Pharmaceuticals (RIGL) HC Wainwright Initiation Buy

$6

N/A

Jazz Pharmaceuticals (JAZZ)- Karen L. Smith, Global Head of R&D and CMO, bought 580 shares at $143.63. The total value of the transaction was $83,305. Smith now owns 13,574 shares of JAZZ.

ACADIA Pharmaceuticals (ACAD)- Glenn Baity, EVP and GC, sold 16,000 shares in two separate transactions. Baity sold 11,943 shares at $35 and 4,057 shares also at $35. Baity still owns 62,921 shares of ACAD.

Xencor (XNCR)- Edgardo Baracchini Jr., Chief Business Officer, sold 1,250 shares at $18.13. The total value of the transaction was $22,663. Baracchini still owns 4,528 shares of XNCR.

Eli Lilly (LLY)- Lilly Endowment Inc., a 10% owner, sold 210,000 shares at $79.54. The total value of the transaction was approximately $16.70 million. Lilly Endowment still owns 126,220,804 shares of LLY.

Epizyme (EPZM)- Andrew E. Singer, EVP & CFO, sold 1,013 shares at $10.36. The total value of the transaction was $10,494. Singer still owns 24,592 shares of EPZM.

No management changes and additions to report.

NYSE- Valeant Pharmaceuticals International (VRX) shares were among the major movers on the NYSE. The stock closed 6.89% lower. Puma Biotechnology (PBYI) ended the day 4.07% lower.

NASDAQ- Aeglea BioTherapeutics (AGLE) shares were among the major gainers on the NASDAQ. The stock ended the day 13.10% higher. Kura Oncology (KURA) ended the day 12.73% higher. Juno Therapeutics (JUNO) ended the day 9.46% higher. Ocular Therapeutix (OCUL) ended the day 9.65% lower. NantKwest (NK) ended the day 8.97% lower. Neos Therapeutics (NEOS) also ended the day 8.97% lower.

NYSEMKT- Asterias Biotherapeutics (AST) shares were among the major movers on the NYSEMKT. The stock closed 5.07% lower.

OTC- Amarantus Bioscience Holdings (AMBS) shares were among the major movers on the OTC market. the stock closed 6.87% higher.

Company (Ticker) Short Interest as a % of Float % Change Days to Cover
CASI Pharmaceuticals (CASI)

0.4%

119.2%

2

Catabasis Pharmaceuticals (CATB)

0.2%

-24.3%

7

Catalyst Biosciences (CBIO)

1.3%

63.6%

1

Catalyst Pharmaceuticals (CPRX)

3.3%

-51%

1

Celator Pharmaceuticals (CPXX)

8.8%

31.7%

2

Celgene (CELG)

1.1%

-1%

1

Celldex Therapeutics (CLDX)

22.6%

-11.4%

7

Cellectar Biosciences (CLRB)

11.7%

3.9%

1

Cellectis (CLLS)

3.7%

3.1%

12

Cellular Biomedicine (CBMG)

8.2%

15.3%

7