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Aetna Inc. ($AET) has stumbled onto a new issue as its Humana acquisition has been blocked by the US regulators. The deal is worth nearly $34 billion. The U.S. Justice Department filed a lawsuit last July to block Aetna's acquisition of Humana, citing that the acquisition may lead to high prices of the drugs. Aetna will have to pay $1 billion breakup fee to Humana, if the deal does not go through.
In his ruling, Judge John Bates of the U.S. District Court for the District of Columbia said the proposed deal would "substantially lessen competition" in the sale of Medicare Advantage plans in 364 counties in 21 states as well as on the Obamacare exchange in three Florida counties. Aetna responded, “We're reviewing the opinion now and giving serious consideration to an appeal after putting forward a compelling case.”

Endo International plc ($ENDP) announced that it has reached a proposed settlement with the US regulators. Under the terms of the deal, the company will not pay rivals to delay the introduction of generic competitors to its medications. The Federal Trade Commission had alleged Endo paid Impax Laboratories Inc. to delay the introduction of a generic version of its painkiller Opana ER. It had also accused the company of paying Watson Laboratories Inc to delay introduction of a generic version of its Lidoderm pain treatment.
Endo said that it has not made any admission of liability. It is also not required to pay any monetary compensation. The FTC had alleged Endo of paying Impax more than $112 million to delay the introduction of Opana ER.

 

• Aptose Biosciences ($APTO) announced the decision to temporarily shelve its lead product candidate APTO-253. The company took this decision to allocate the resources towards the development of preclinical-stage CG'806 for FLT3-driven acute myeloid leukemia and certain BTK-driven B-cell malignancies. The company also needs to solve manufacturing problems related to the intravenous formulation of APTO-253.
• Northwest Biotherapeutics ($NWBO) filed an 8-K which suggests that the company may delay in releasing DCVax study data. The estimated study completion date was November 2016. The company stated that one of the reasons behind the delay is that key managerial personnel were struck down by the flu. It said that the team is "now getting back into operation"

• BIOLASE ($BIOL) announced the global launch of its Epic Pro laser system. This diode laser system offers higher laser power than most diode lasers in dentistry. It is also the first commercially available laser system as the result of the company's strategic development agreement with IPG Medical Corporation.
• Becton Dickinson and Co. ($BDX) announced that its PleurX catheter system has received 510(K) clearance from the FDA. The system is now authorized to be used for specific non-malignant recurrent pleural effusions etiologies, including congestive heart failure. The system lets the patient to drain pleural fluid in a home setting.

 
• Edwards Lifesciences ($EW) announced finalizing its $340M cash-and-stock acquisition of Valtech Cardio. The deal was announced in November 2016. Valtech is based out of Israel and develops Cardioband System for transcatheter repair of the mitral and tricuspid valves.
Under the terms of the merger agreement, Edwards paid $340 million in stock and cash for Valtech at closing, subject to some adjustments. In addition, there is also the potential for up to $350 million in pre-specified milestone-driven payments over the next 10 years.
• Leap Therapeutics (LPTX) announced the completion of merger with Macrocure ($MCUR). Leap Therapeutics, Inc. is a biotechnology company developing targeted and immuno-oncology therapeutics. Post-merger, Macrocure became a wholly-owned subsidiary of Leap.
Leap will be listed on The Nasdaq Global Market under the symbol “LPTX”. The stock is expected to begin trading on Tuesday, January 24, 2017. Leah has two major drug candidates in the pipeline

 
• ResMed Inc. ($RMD) reported fiscal second-quarter profit of $76.7 million. The company’s per share net income stood at $0.54. Its adjusted earnings per share were reported at $0.73. ResMed also posted revenue of $530.4 million in the period, up 17 percent on quarter over quarter basis. Its revenue in the Americas was $326.8 million, a 21 percent increase over the same period of the prior year.
The company reported its gross margin in the second quarter was 58.3 percent, higher than the prior year's quarter gross margin of 58.1 percent, excluding the prior year release of $2.4 million in accrued expenses. Income from operations for the quarter was $96.9 million, a 10 percent decline compared with the quarter ended December 31, 2015.

• Globus Medical ($GMED) received Hold rating from Canaccord Genuity. The price target for the stock has been set at $27 apiece.
• Zeltiq Aesthetics ($ZLTQ) received Buy rating from Canaccord Genuity. The price target for the stock has been set at $45 apiece.

Gainers (% price change) Last Trade Change Mkt Cap
Cynosure, Inc.
CYNO (NASDAQ)
46.75 +2.90 (6.61%) 1.11B
Pacific Biosciences of
PACB (NASDAQ)
4.75 +0.19 (4.17%) 441.04M
Infinity Pharmaceuticals
INFI (NASDAQ)
2.08 +0.08 (4.00%) 133.47M
Depomed Inc
DEPO (NASDAQ)
18.50 +0.71 (3.99%) 1.12B
China Biologic Products
CBPO (NASDAQ)
111.21 +3.89 (3.62%) 3.03B
Losers (% price change)
CyberOptics Corporation
CYBE (NASDAQ)
36.85 -3.30 (-8.22%) 260.76M
Neurocrine Biosciences
NBIX (NASDAQ)
38.84 -2.43 (-5.89%) 3.35B
HealthStream, Inc.
HSTM (NASDAQ)
21.45 -1.30 (-5.71%) 667.90M
Zogenix, Inc.
ZGNX (NASDAQ)
8.50 -0.45 (-5.03%) 202.79M
Valeant Pharmaceuticals
VRX (NYSE)
13.99 -0.74 (-5.02%) 4.72B
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Humana Inc
HUM (NYSE)
205.02 +4.49 (2.24%) 29.76B
Bristol-Myers Squibb Co
BMY (NYSE)
50.00 +0.77 (1.56%) 74.13B
Johnson & Johnson
JNJ (NYSE)
113.91 -0.24 (-0.21%) 309.76B
Pfizer Inc.
PFE (NYSE)
31.46 -0.31 (-0.98%) 191.33B
Gilead Sciences, Inc.
GILD (NASDAQ)
70.69 -0.32 (-0.45%) 92.40B