[/toggle]

FibroGen (FGEN) shares rose sharply on Tuesday after the company announced that it has earned a $10 milestone payment from Astellas Pharma. The milestone payment was triggered following the dosing of the first patient in Phase 3 studies in Japan evaluating roxadustat for the treatment of anemia in patients with chronic kidney disease (CKD).

FGEN has a collaboration with Astellas for its lead product candidate in Japan, the Commonwealth of Independent States, the Middle East and South Africa. The company also has a collaboration with AstraZeneca (AZN)     in the U.S., China and other markets. As I have noted before, the potential value of these licensing deals is significantly higher than FGEN’s current market capitalization. After climbing up to $30 last year, FGEN shares have struggled this year, failing to break through $20. However, the current price levels represent an attractive entry point in my opinion. With roxadustat continuing to progress well, FGEN offers tremendous upside.

Tokai Pharma Terminates Late Stage Study of Galeterone- Tokai Pharmaceuticals (TKAI) shares plunged nearly 80% on Tuesday after the company announced that it has terminated its Phase 3 clinical trial, ARMOR3-SV, evaluating lead product candidate galeterone compared to enzalutamide (XTANDI) in treatment-naive men with metastatic castration-resistant prostate cancer (mCRPC) whose tumors express the androgen receptor splice variant AR-V7. The decision was taken following the recommendation from the independent Data Monitoring Committee that the trial was unlikely to meet its primary efficacy endpoint. Tokai intends to evaluate its ongoing ARMOR2 expansion in mCRPC patients with acquired resistance to enzalutamide and its planned study in patients who rapidly progress on either enzalutamide or abiraterone acetate (ZYTIGA).

Teva, Mylan Eyeing Pfizer’s Brazilian Generic Venture- According to a report by Reuters, Teva Pharmaceutical Industries (TEVA) and Mylan (MYL) have shown preliminary interest in a Brazilian generic venture. Pfizer (PFE) has a 40% stake in this venture. Reuters, citing people familiar with the matter, said that India’s Sun Pharmaceutical Industries Ltd. and three buyout firms have also shown interest in the Brazilian venture. Reuters noted that generic drugs sales in Brazil totaled $14 billion in 2015.

No approvals to report.

No patents to report.

Bristol-Myers Squibb (BMY) and Janssen Biotech (JNJ) will collaborate in a Phase 2 trial evaluating the combination of BMY's Opdivo (nivolumab) and Janssen's immunotherapy JNJ-64041757 in patients with non-small cell lung cancer (NSCLC). JNJ-64041757 is an antigen-presentation therapeutic based on Live Attenuated Double-Deleted Listeria monocytogenes bacteria strains engineered to induce an immune response against NSCLC tumors. It is currently in Phase 1 development for lung cancer.

AbbVie (ABBV) and privately held X-Chem enter into a multi-target drug discovery partnership with the aim of identifying novel small molecule inhibitors of promising new targets in addition to those already validated but difficult to address. AbbVie has an exclusive option to license active hits and leads generated during the collaboration and is responsible for all further development and commercialization. Financial terms of the deal have not yet been disclosed.

Cardiome Pharma (CRME) shares tumbled on Tuesday after the company announced that it has priced its public offering of 10M shares of common stock at $3.00 per share. Underwriters over-allotment is an additional 1.5M shares. Net proceeds from the offering will fund the in-licensing of dalbavancin, including milestone payments related to pricing reimbursement and launches, and general corporate purposes.

No IPOs to report.

EXACT Sciences (EXAS) reported a loss of $0.46 per share in its second quarter, beating consensus forecast by 9 cents. The company’s revenue for the quarter was $21.19 million, up 161% on a year-over-year basis. Revenue beat consensus forecast by $2.65 million.

Icon (ICLR) reported second-quarter earnings of $1.14 per share, in-line with the consensus forecast. The company’s revenue for the quarter was $410.63 million, up 5.7% on a year-over-year basis. Revenue beat consensus forecast by $0.66 million.

Eli Lilly (LLY) reported earnings of $0.86 per share in its second quarter, in-line with the consensus forecast. The company’s revenue for the quarter was $5.4 billion, up 8.4% on a year-over-year basis. Revenue beat consensus forecast by $250 million. Humalog sales for the quarter totaled $701.9 million, up 7.3% on a year-over-year basis. For 2016, LLY expects revenue to between $20.6 billion and $21.1 billion. Earnings for the full year 2016 are expected to be between $2.68 per share and $2.78 per share. On a non-GAAP basis, earnings for 2016 are expected to be between $3.50 per share and $3.60 per share.

RedHill Biopharma (RDHL) reported a loss of $0.06 per share in its second quarter. The company ended the quarter with $3.4 million in cash and cash equivalents on its balance sheet.

Dr. Reddy’s (RDY) reported earnings of $0.11 per share in its first quarter. The company reported revenue of $479 million for the quarter, down 14% on a year-over-year basis.

Alimera Sciences (ALIM) reported its preliminary second-quarter financial results. The company expects second-quarter revenue to be in the range of $9.3 million to $9.5 million. U.S. revenue is expected to be in the range of $7 million to $7.2 million.

Seattle Genetics (SGEN) reported a loss of $0.23 per share in its second quarter, beating consensus forecast by 9 cents. The company’s revenue for the quarter was $95.4 million, up 23.7% on a year-over-year basis. Revenue beat consensus forecast by $1.26 million.

Illumina (ILMN) reported second-quarter earnings of $0.86 per share in its second quarter, beating consensus forecast by 13 cents. The company’s revenue for the quarter was $600 million, up 11.2% on a year-over-year basis. Revenue beat consensus forecast by $6.88 million.

Alder Bio (ALDR) reported a loss of $0.79 per share in its second quarter, missing consensus forecast by 4 cents. The company’s revenue for the quarter was $0.1 million.

Company (Ticker) Brokerage Action Recommendation Price Target My Price Target
ACADIA Pharmaceuticals (ACAD) Needham & Company Reiterate Buy

$49

$100.40

ACADIA Pharmaceuticals (ACAD) Cowen and Company Reiterate Outperform

$42

$100.40

ACADIA Pharmaceuticals (ACAD) Piper Jaffray Cos. Reiterate Overweight

$44

$100.40

Alimera Sciences (ALIM) Cowen and Company Reiterate Hold N/A N/A
Anavex Life Sciences (AVXL) FBR & Co. Reiterate Outperform

$10

N/A
Biogen (BIIB) Jefferies Group Reiterate Buy

$319

$420

Celgene (CELG) Robert W. Baird Reiterate Outperform

$162

$140

Celgene (CELG) Jefferies Group Reiterate Buy

$138

$140

Celgene (CELG) RBC Capital Markets Reiterate Buy N/A

$140

Celgene (CELG) BMO Capital Markets Reiterate Buy N/A

$140

Eagle Pharmaceuticals (EGRX) Mizuho Price Target Raised Neutral From $37.80 to $47 N/A
Endo International Plc (ENDP) JPMorgan Chase & Co. Reiterate Overweight

$40

N/A
EXACT Sciences (EXAS) Canaccord Genuity Reiterate Buy N/A N/A
Gilead Sciences (GILD) RBC Capital Markets Price Target Cut Outperform From $120 to $105

$130

Gilead Sciences (GILD) Credit Suisse Group Reiterate Buy N/A

$130

Gilead Sciences (GILD) Royal Bank of Canada Price Target Cut Outperform From $120 to $105

$130

Gilead Sciences (GILD) Needham & Company Downgrade/Price Target Raised From Buy to Hold From $84.60 to $88.55

$130

Gilead Sciences (GILD) Robert W. Baird Price Target Cut Outperform From $135 to $122

$130

Gilead Sciences (GILD) Piper Jaffray Cos. Price Target Cut N/A

$108

$130

Gilead Sciences (GILD) Jefferies Group Reiterate Hold

$93

$130

Kite Pharma (KITE) Canaccord Genuity Reiterate Buy

$75

N/A
Ocular Therapeutix (OCUL) BTIG Research Reiterate Buy

$18

N/A
PTC Therapeutics (PTCT) Credit Suisse Group Downgrade From Outperform to Neutral N/A N/A
PTC Therapeutics (PTCT) Wedbush Price Target Cut Neutral From $12 to $10 N/A
Dr. Reddy’s Laboratories (RDY) Credit Suisse Group Reiterate From Neutral to Underweight N/A N/A
Relypsa (RLYP) Cantor Fitzgerald Downgrade From Buy to Hold N/A N/A
Sarepta Therapeutics (SRPT) Oppenheimer Holdings Reiterate Outperform

$60

N/A
Teva Pharmaceutical Industries (TEVA) JPMorgan Chase & Co. Reiterate Overweight

$75

N/A
Tokai Pharmaceuticals (TKAI) Stifel Nicolaus Downgrade From Buy to Hold N/A N/A
Tokai Pharmaceuticals (TKAI) William Blair Downgrade From Outperform to Market Perform N/A N/A
Tokai Pharmaceuticals (TKAI) BMO Capital Markets Downgrade From Outperform to Market Perform N/A N/A
Tokai Pharmaceuticals (TKAI) Wells Fargo & Co. Downgrade From Outperform to Market Perform N/A N/A
Tokai Pharmaceuticals (TKAI) Janney Montgonery Scott Downgrade From Buy to Neutral N/A N/A
VBI Vaccines (VBIV) Laddenburg Thalmann Initiation Buy N/A N/A
Valeant Pharmaceuticals Industries (VRX) Mizuho Reiterate Underperform

$11

N/A
Valeant Pharmaceuticals Industries (VRX) Scotiabank Price Target Cut Sector Perform From $35 to $32 N/A
Zynerba Pharmaceuticals (ZYNE) Piper Jaffray Cos. Reiterate Overweight

$42

N/A

No insider buys to report.

Kite Pharma (KITE)- Cynthia M. Butitta, COO, sold 10,000 shares at $50.94. The total value of the transaction was $509,359, Butitta still owns 95,401 shares of KITE.

BioMarin Pharmaceutical (BMRN)- Bryan V Lawlis, Director, sold 6,400 shares at $95.01. The total value of the transaction was $608,064. Lawlis still owns 13,860 shares of BMRN.

Relypsa (RLYP)- Orbimed Advisors, a 10% owner, sold 4,043,600 shares in two separate transactions. Orbimed sold 3,700,000 shares at $32; and 343,600 shares at $31.98. Obimed Advisors still owns 3,356,400 shares of RLYP.

No management changes and additions to report.

NYSE- Puma Biotechnology (PBYI) shares were among the major gainers on the NYSE. The stock closed 9.94% higher. Dr. Reddy’s Laboratories (RDY) shares were among the worst performers on the NYSE. The stock closed 15.34% lower. Taro Pharmaceutical Industries (TARO) ended the day 4.63% lower.

NASDAQ- Eleven Biotherapeutics (EBIO) shares were among the major gainers on the NASDAQ. The stock closed 12.99% higher. pSivida (PSDV) ended the day 12.50% higher. Ultragenyx Pharmaceuticals (RARE) ended the day 5.48% higher. Tokai Pharmaceuticals (TKAI) shares were among the major losers on the NASDAQ. The stock closed 78.85% lower. PTC Therapeutics (PTCT) ended the day 13.02% lower. KemPharm (KMPH) ended the day 10.81% lower.

NYSEMKT- Asterias Biotherapeutics (AST) shares were among the major movers on the NYSEMKT. The stock closed 1.57% higher.

OTC- Amarantus Bioscience Holdings (AMBS) shares were among the major movers on the OTC market. The stock closed 1.96% higher.

Company (Ticker) Short Interest as a % of Float % Change Days to Cover
Horizon Pharma (HZNP)

14.6%

0.4%

6

Hemispherx Biopharma (HEB)

0.3%

-11.4%

1

iBio Inc. (IBIO)

0.9%

-5.9%

4

Immunocellular Therapeutics (IMUC)

2.7%

-2%

18

Idera Pharmaceuticals (IDRA)

11.7%

-0.9%

36

Ignyta (RXDX)

2.9%

-5.7%

5

Illumina (ILMN)

4.8%

-6.5%

6

ImmuCell (ICCC)

0.1%

-44.6%

1

Immune Design (IMDZ)

8.5%

-3.3%

15

Immune Pharmaceuticals (IMNP)

1.5%

43.9%

0