Relypsa (RLYP) shares have surged more than 58% in early trading after the company agreed to be acquired by Galencia. Galencia will acquire RLYP for $32 per share in an all cash transaction that values RLYP at $1.53 billion.

For RLYP bulls, the offer price would be a disappointment. It is significantly below my fair value for the stock of $48.20 per share. It is also well below what AstraZeneca (AZN) paid to acquire ZS Pharma last year. And remember that RLYP has an approved drug. Still, I believe that investors that entered RLYP at its recent lows should take profit.

Valeant Pharmaceuticals (VRX) shares have bounced back sharply this week, gaining more than 7%. The gains have been driven by some much needed positive news, including the approval of oral RELISTOR.  Meanwhile, Pershing Square, one of VRX’s largest shareholders, is continuing to back the company.

As I have said before, the value of VRX’s assets is higher than the current market capitalization and therefore VRX is worth a small position. With the approval of oral RELISTOR, the company has also got a much needed boost.

Aegerion to Withdraw JUXTAPID From EU- Aegerion Pharmaceuticals (AEGR) announced that it will withdraw op seller JUXTAPID (lomitapide) capsules from the European Union and certain other markets by the end of the year, unless it can ink a supply deal with suitable partners in those areas. The company expects to reduce operating expenses by $25 million to $35 million in 2017 as a result of the withdrawal. AEGR said that its efforts in establishing pricing and eimbursement in the regions have failed to bear fruit. The company believes the impact from this move would not be significant as 90% of JUXTAPID sales are generated in the U.S. AEGR will also reduce 3% of its workforce by the end of this quarter and complete its employee separation payments by the end of Q2 2017. The company will provide an updated inancial guidance after the closing of its previously announced merger with QLT, expected to occur no later than early Q4.

Janssen (JNJ) announced that Health Canada has approved its INVOKAMET for the treatment of adults with type 2 diabetes. NVOKANA® is the first sodium glucose co-transporter 2 (SGLT2) inhibitor approved in Canada that works with the kidney to promote the loss of glucose in the urine.

No patents to report.

Shire Plc (SHPG) is selling three pre-clinical programs targeting central nervous system (CNS) diseases to privately-held Chronos Therapeutics Ltd. According to the terms of the agreement, Chronos will acquire global rights to develop and commercialize programs focused on multiple sclerosis, addictive behaviors and potentially post-traumatic stress disorder. Additional indications may also be possible. Shire will receive milestone payments and royalties on net sales. It will also establish an equity stake in Chronos. Shire has the right of first negotiation for each program on commercial terms and the right to reacquire each if Chronos fails to invest a prespecified minimum amount.

Transgenomic (TBIO) announced that it has signed a deal with LabCorp. (LH) for its DNA test for Long QT syndrome, a congenital heart rhythm disorder associated with potentially life-threatening cardiac arrhythmias. Genetic testing can help identify people at risk for the disorder so doctors can institute appropriate therapy. Financial terms of the deal have not been disclosed.

Evoke Pharma (EVOK) announced that it has signed definitive agreements with institutional investors for the direct placement of 1.8 million shares of common stock at $2.49375 per share. For each share purchased, investors will also receive 3/4 of a warrant to purchase one share of common at $2.41. The warrants are immediately exercisable and will expire in 5 1/2 years. Net proceeds will fund the continues analysis of the EVK-001 Phase 3 data and its development potential, the preparations for a potential FDA meeting, working capital, general corporate purposes and the potential repayment of outstanding indebtedness under its loan and security agreement.

European Union (EU) competition regulators have approved Mylan’s (MYL) acquisition of Swedish rival Media. However, regulators have placed a condition that the merged company sell businesses in around a dozen European countries. MYL announced the acquisition of Meda for $7.2 billion.

Pulmatrix (PULM) has filed a Form S-3 with the U.S. Securities and Exchange Commission (SEC). According to the filing, the company may offer and sell from time to time, in one or more series or issuances and on terms that it will determine at the time of the offering, any combination of the securities described in the prospectus, up to an aggregate amount of $30,000,000.

No IPOs to report.

Abbott Laboratories (ABT) reported earnings of $0.55 per share, beating consensus forecast by 2 cents. The company reported revenue of $5.33 billion, up 3.1% on a year-over-year basis. Revenue beat consensus forecast by $90 million.

Company (Ticker) Brokerage Action Recommendation Price Target My Price Target
Arbutus Biopharma (ABUS) Wedbush Reiterate Outperform

$20

N/A
Arbutus Biopharma (ABUS) Leerink Swann Reiterate Buy N/A N/A
Adamas Pharmaceuticals (ADMS) Needham & Company Reiterate Buy

$38

N/A
AstraZeneca (AZN) Shore Capital Reiterate Hold N/A N/A
Cytori Therapeutics (CYTX) Maxim Group Reiterate Buy

$5

N/A
MyoKardia (MYOK) BMO Capital Markets Initiation Outperform

$28

N/A
Pacira Pharmaceuticals (PCRX) Wedbush Reiterate Outperform

$105

N/A
Pacira Pharmaceuticals (PCRX) Mizuho Reiterate Buy

$64

N/A
Progenics Pharmaceuticals (PGNX) BTIG Research Reiterate Buy

$9

$31.50

PTC Therapeutics (PTCT) Wedbush Reiterate Neutral

$12

N/A
Teva Pharmaceutical Industries (TEVA) RBC Capital Markets Reiterate Outperform

$71

N/A
T2 Biosystems (TTOO) WBB Securities Upgrade/Price Target Raised From Buy to Strong Buy From $11 to $12 N/A
Valeant Pharmaceuticals International (VRX) BMO Capital Markets Reiterate Market Perform

$26

N/A
Zagfen (ZFGN) Leerink Swann Reiterate Market Perform

$6

N/A
Zafgen (ZFGN) FBR & Co. Downgrade/Price Target Cut From Outperform to Market Perform From $20 to $5 N/A
Zafgen (ZFGN) Cowen and Company Downgrade From Outperform to Market Perform N/A N/A

Ardelyx (ARDX)- Several insiders in ARDX recently bought shares in the company’s secondary offering. The purchases were made at $8.73 per share.

Illumina (ILMN)- Robert S. Epstein, Director, sold 1200 shares at $150 in two separate transactions. Epstein still holds 7,524 shares of ILMN. Jay T. Flatley, Director, sold 10,000 shares at $150. Flatley still owns 488,061 shares of ILMN.

BioMarin Pharmaceutical (BMRN)- Jean Jacques Beinaime, CEO, sold 41,666 shares at $92.72. The total value of the transaction was approximately $3.86 million. Beinaime still owns 378,584 shares of BMRN.

Juniper Pharmaceuticals (JNP) announced the appointment of Alicia Secor as its President & CEO, effective August 1st. Secor joins Juniper Pharmaceuticals from Zafgen (ZFGN), where she served as Chief Commercial Officer.

NYSE- Mallinckrodt (MNK) shares were among the major gainers on the NYSE. The stock closed 7.50% higher. Intrexon (XON) ended the day 6.37% higher. Puma Biotechnology (PBYI) ended the day 6.13% higher.

NASDAQ- Progenics (PGNX) shares were among the major gainers on the NASDAQ. The stock closed 24.29% higher. aTyr Pharma (LIFE) ended the day 16.79% higher. Affimed (AFMD) ended the day 13.18% higher. Zafgen (ZFGN) shares were among the major losers on the NASDAQ. The stock closed 52% lower. Pulmatrix (PULM) ended the day 6.73% lower. Reata Pharmaceuticals (RETA) ended the day 6.52% lower.

NYSEMKT- Actinium Pharmaceuticals (ATNM) shares were among the major movers on the NYSEMKT. The stock closed 4.91% higher.

OTC- Amarantus Bioscience Holdings (AMBS) shares were among the major movers on the OTC market. The stock closed 5.65% lower.

Company (Tikcer) Short Interest as a % of Float % Change Days to Cover
CytomX Therapeutics (CTMX)

6.9%

64%

5

Cytori Therapeutics (CYTR)

4.9%

-19.6%

3

Cytosorbents (CTSO)

2.9%

-2.4%

13

CytRx (CYTR)

24.5%

0.7%

20

Can-Fite Biopharma (CANF) -

-15.2%

4

CEL-SCI (CVM)

3.7%

1.7%

20

CorMedix (CRMD)

10.7%

-25%

6

Depomed (DEPO)

21.4%

-0.3%

11

Derma Sciences (DSCI)

0.9%

6.9%

4

Dermira (DERM)

7.4%

36.9%

4