Sage Therapeutics (SAGE) shares were among the biggest gainers on Tuesday. The stock soared after the company announced successful results in a Phase 2 clinical trial evaluating lead product candidate SAGE-547 for the treatment of severe postpartum depression (PPD). The study met its primary endpoint of a statistically valid reduction in depression symptoms from baseline compared to placebo as measured by the total score in the Hamilton Rating Scale for Depression (HAM-D) at 60 hours (p=0.008). Despite the rally, SAGE is still down more than 21% for the year. The stock is also trading well below its 52-week high of $77.48.

BioDelivery Sciences International (BDSI) shares closed nearly 12% higher on Tuesday. The rally was sparked after the company announced that it has signed an agreement with a major U.S. managed care provider securing preferred status for BUNAVAIL (buprenorphine and naloxone) buccal film (CIII) for the maintenance treatment of opioid dependence. The agreement officially goes into effect on January 1, 2017.

Investors have been disappointed with BUNAVAIL sales. This is the main reason why BDSI shares have dropped from around $15 to their current levels. However, there were signs of sales picking up in the fourth quarter of last year. The agreement of course is expected to boost sales further when it goes into effect in 2017. I had noted earlier that at current levels, BDSI offers a very favorable risk/reward profile. I continue to believe that BUNAVAIL has the potential to capture market share but this will be a gradual process.

Jazz Announces Results of Celator Tender Offer- Jazz Pharmaceuticals (JAZZ) announced the results of its tender offer to purchase all of the outstanding shares of common stock of Celator Pharmaceuticals  (CPXX) at $30.25 per share. The tender offer is being effected by Jazz Pharmaceuticals' indirect wholly-owned subsidiary, Plex Merger Sub. A total of 36.5M shares of Celator common stock had been validly tendered, representing ~81.13% of its outstanding shares. Additionally Notices of Guaranteed Delivery have been delivered with respect to 2M additional shares, representing another 4.48%.

Asterias Completes Enrollment and Dosing in SCiSTAR Study- Asterias Biotherapeutics (AST) announced that it has completed enrollment and dosing of five subjects in the first efficacy cohort of its Phase 1/2a study, SCiSTAR, evaluating the activity of escalating doses of AST-OPC1 (oligodendrocyte progenitor cells) in newly injured patients with sensory and motor complete cervical spinal cord injury (SCI). Each patient was administered 10M AST-OPC1 cells, a dose high enough to show efficacy based on preclinical studies. Top-line six-month data are expected in January 2017. The primary endpoint is safety.

InVivo Provides Update on INSPIRE Study- InVivo Therapeutics (NVIV) announced hat the 9th and 10th subjects have been implanted in its 20-subject Phase 3 clinical trial, INSPIRE. The study is evaluating he Neuro-Spinal Scaffold in patients with acute spinal cord injury. The 10th patient died from a stroke several days post-implantation. The cause of death was determined to be unrelated to the Neuro-Spinal Scaffold. The primary endpoint is the proportion of patients who achieve an improvement of at least one AIS grade level at month 6. The study is expected to be completed in June 2017.

The Medicines Company Gets Favorable Ruling in Angiomax Patent Dispute- The Medicines Company (MDCO) announced that the .S. Court of Appeals for the Federal Circuit unanimously  affirmed an earlier district court ruling that patents covering the company’s anticoagulant Angiomax (bivalirudin) are not invalid under "on sale" bar (a concept that says that a product that is sold for at least one year before the patent application is submitted is not patentable). The original intent for enacting the rule was to prevent inventors from extending their monopoly beyond the patent period.

MyoKardia Shares Soar on Update for Lead Product Candidate- MyoKardia (MYOK) shares closed more than 30% higher on Tuesday after the company provided an update on its lead product candidate MYK-461, under development for the treatment of hypertrophic cardiomyopathy (HCM), a common heart disorder in which the muscle cells enlarge and cause the wall of the ventricles to thicken resulting in restricted blood flow. The company said that data from two recently completed Phase 1 studies showed favorable tolerability of single doses of MYK-461 in healthy volunteers and HCM patients. Repeat doses of MYK-461 were well tolerated for up to 28 days in healthy volunteers across a range of pharmacologically active doses with reductions in cardiac contractility sustained throughout. The data suggest a dose-dependent reduction in contractility consistent with the magnitude of reduction that confers a meaningful clinical benefit, according to the literature.


Exact Sciences Rallies on Takeover Rumors- Exact Sciences (EXAS) shares rose sharply on Tuesday amid takeover rumors. According to reports, Illumina (ILMN) is interested in acquiring EXAS.

Teva Raises Q2 Guidance- Teva Pharmaceutical Industries (TEVA) has raised its second-quarter earnings and revenue guidance to $1.19 - 1.22/$4.9B - 5.0B from $1.16 - 1.20/$4.8B - 4.9B. It expects lower cash flow from operations, though, easing its guidance to $1.0B - 1.1B from $1.2B - 1.3B. The consensus forecast is for earnings of $1.17 per share on revenue of $4.81 billion.

Juno Rallies as FDA Removes Clinical Hold on Mid-Stage Study of JCAR015- Juno Therapeutics (JUNO) shares have surged in pre-market trading today after the FDA removed its clinical hold on the company’s Phase 2 clinical trial, ROCKET, evaluating its lead CAR-T candidate JCAR015 for the treatment of adult patients with relapsed/refractory B cell acute lymphoblastic leukemia. The clinical hold was placed recently after two patients died after receiving the preconditioning regimen of cyclophosphamide + fludarabine. Going forward, the study participants will be preconditioned with cyclophosphamide only.

Shire (SHPG) announced that the FDA has approved its Xiidra (lifitegrast ophthalmic solution) 5%, a twice-daily eye drop solution indicated for the treatment of the signs and symptoms of dry eye disease in adult patients. It is the first prescription eye drop indicated for the treatment of both signs and symptoms of this condition. U.S. market launch should commence in Q3. Analysts expect Xiidra global annual sales to reach $2.50 billion by 2030.

Pfizer (PFE) announced that the FDA has approved the use of its Prevnar 13 (Pneumococcal 13-valent Conjugate Vaccine [Diphtheria CRM197 Protein]) in adult patients ages 18 through 49, extending the approved ages from the previous 50 years old and older.

No patents to report.

Bayer (BAYRY) and X-Chem have expanded their research collaboration, initiated in 2012, to discover lead structures for complex drug targets in areas of high unmet medical need. The new multiyear deal extends Bayer's access to X-Chem's DEX technology which is based on DNA-encoded libraries of small molecules. According to the terms of the new agreement, X-Chem will receive an upfront payment, R&D funding and milestones valued up to an aggregate of $528M. Bayer has an exclusive option to license any programs generated in the course of the collaboration. X-Chem will earn royalties and sales milestones for each successfully commercialized drug that results from the partnership.

Seres Therapeutics (MCRB) and Emulate, a privately held company, have announced a new collaboration. According to the terms of the agreement, Seres and Emulate will work to further advance Emulate’s Intestine-Chip platform, a micro-engineered, living-tissue-based system that models the human intestine. Seres intends to use the technology to identify novel bacteria compositions with therapeutic potential. The company expects Emulate’s technology platform will enhance its approach for drug discovery and accelerate its efforts to identify promising new microbiome therapeutic candidates for inflammatory bowel disease, other autoimmune or immunological conditions, infectious diseases, and other serious disease states, which may have a microbiome therapeutic based solution.

Adamis Pharmaceuticals (ADMP) announced that it has finalized the private placement of 1,724,137 shares of Series A-2 Convertible Preferred Stock and warrants to purchase up to 1,724,137 shares of common stock and/or Series A-2 Preferred Stock generating gross proceeds of approximately $5 million. The Preferred and warrants were sold as units at $2.90, each unit consisting of one share of Preferred and one warrant. Each share of Preferred is convertible into one share of common at any time at the investor's discretion. Each five-year warrant is exercisable at $2.90 a share.

Galena Biopharma (GALE) disclosed in a regulatory filing that on July 6th it agreed o issue 3,125,000 shares of common stock to five parties to settle outstanding claims in a "certain matter.” The company also settled a securities class action lawsuit for $20M, $16.7M of which was paid by the company's insurance carriers and $2.3M in cash paid by the company on July 1. On July 6, it issued 480,053 shares of common stock pursuant to the court order.

GW Pharmaceuticals (GWPH) announced that it intends to sell $150M of American Depositary Shares (ADSs) in a U.S. public offering. Underwriters to the offering have have been allotted an additional $22.5 million of ADSs. Price and terms of the offering have not been announced yet.

No IPOs to report.

No earnings to report.

Company (Ticker) Brokerage Action Recommendation Price Target My Price Target
Abbott Laboratories (ABT) Barclays Plc Reiterate Overweight

$48

N/A
Agios Pharmaceuticals (AGIO) Credit Suisse Group Reiterate Buy N/A N/A
Akebia Therapeutics (AKBA) Credit Suisse Group Reiterate Hold N/A N/A
Alexion Pharmaceuticals (ALXN) Royal Bank of Canada Initiation Outperform

$188

N/A
Alkermes (ALKS) Barclays Plc Reiterate Buy N/A N/A
Amgen (AMGN) BMO Capital Markets Reiterate Buy N/A

$250

AstraZeneca (AZN) Argus Initiation Hold N/A N/A
BioDelivery Sciences International (BDSI) Janney Montgomery Scott Reiterate Hold N/A N/A
Bristol-Myers Squibb (BMY) Berenberg Bank Reiterate Buy N/A N/A
Celgene (CELG) Credit Suisse Group Reiterate Outperform

$140

N/A
Celsion (CLSN) HC Wainwright Reiterate Buy

$3

N/A
Cempra (CEMP) JPMorgan Chase & Co. Initiation Overweight

$31

N/A
Clovis Oncology (CLVS) Credit Suisse Group Reiterate Hold N/A N/A
CytoKinetics (CYTK) Piper Jaffray Cos. Reiterate Overweight

$24

N/A
CytRx (CYTR) FBR & Co. Price Target Cut Outperform From $8 to $3 N/A
CytRx (CYTR) S&P Equity Research Price Target Cut N/A From $1.04 to $0.75 N/A
Endocyte (ECYT) Credit Suisse Group Reiterate Buy N/A N/A
FibroGen (FGEN) Credit Suisse Group Reiterate Buy N/A

$37

Five Prime Therapeutics (FPRX) Credit Suisse Group Reiterate Buy N/A N/A
Ignyta (RXDX) Credit Suisse Group Reiterate Buy N/A N/A
Incyte (INCY) Royal Bank of Canada Initiation Outperform

$105

N/A
Juniper Pharmaceuticals (JNP) Roth Capital Reiterate Buy N/A N/A
Mast Therapeutics (MSTX) Maxim Group Reiterate Buy N/A N/A
Medivation (MDVN) Credit Suisse Group Reiterate Buy

$63

N/A
Medivation (MDVN) Wedbush Price Target Raised Outperform From $63 to $66 N/A
Mylan (MYL) Morgan Stanley Reiterate Hold N/A N/A
MyoKardia (MYOK) Credit Suisse Group Reiterate Buy N/A N/A
Novartis (NVS) Bank of America Corp. Reiterate Hold N/A N/A
OvaScience (OVAS) Credit Suisse Group Reiterate Sell N/A N/A
Prima BioMed (PBMD) Maxim Group Reiterate Buy N/A N/A
Prothena (PRTA) Credit Suisse Group Reiterate Buy N/A N/A
Puma Biotechnology (PBYI) Credit Suisse Group Reiterate Buy N/A N/A
Regeneraon Pharmaceuticals (REGN) BTIG Research Reiterate Hold N/A

$475

Relypsa (RLYP) Brean Capital Reiterate Buy

$26

$48.20

Relypsa (RLYP) Morgan Stanley Reiterate Underweight

$9

$48.20

Relypsa (RLYP) Wedbush Reiterate Outperform

$51

$48.20

Sage Therapeutics (SAGE) BMO Capital Markets Reiterate Buy N/A N/A
Sage Therapeutics (SAGE) Chardan Capital Reiterate Sell N/A N/A
Sage Therapeutics (SAGE) Cowen and Company Reiterate Buy N/A N/A
Sage Therapeutics (SAGE) JPMorgan Chase & Co. Reiterate Buy N/A N/A
Sage Therapeutics (SAGE) Leerink Swann Reiterate Outperform

$66

N/A
Sagent Pharmaceuticals (SGNT) Raymond James Financial Downgrade From Buy to Market Perform N/A N/A
Seattle Genetics (SGEN) Credit Suisse Group Reiterate Buy N/A N/A
Shire Plc (SHPG) BTIG Research Reiterate Positive N/A N/A
Shire Plc (SHPG) Leerink Swann Reiterate Buy N/A N/A
Spark Therapeutics (ONCE) Royal Bank of Canada Initiation Outperform

$70

N/A
Sucampo Pharmaceuticals (SCMP) Roth Capital Reiterate Buy N/A N/A
Synergy Pharmaceuticals (SGYP) Rodman & Renshaw Reiterate Buy

$15

$13.50

Teva Pharmaceutical Industries (TEVA) Royal Bank of Canada Price Target Cut Outperform From $75 to $71 N/A
The Medicines Company (MDCO) Bank of America Corp. Reiterate Buy N/A

$50

The Medicines Company (MDCO) Royal Bank of Canada Reiterate Buy N/A

$50

Ultragenyx Pharmaceuticals (RARE) Credit Suisse Group Reiterate Buy N/A N/A

Flex Pharma (FLKS)- John Sculley, Director, bought 4,709 shares in two separate transactions. Sculley bought 709 shares at $11.13; and 4,000 shares at $12.06. Sculley now owns 4,709 shares of FLKS.

Illumina (ILMN)- Christian O Henry, EVP & Chief Commercial Officer, sold 716 shares at $141.89. The total value of the transaction was $101,593. Henry still owns 18,976 shares of ILMN.

ImmuCell (ICCC)- Joseph H. Crabb, VP & Chief Scientific Officer, sold 1,935 shares at $6.55. The total value of the transaction was $12,669. Crabb still owns 105,111 shares of ICCC.

No management changes and additions to report.

NYSE- Axovant Sciences (AXON) shares were among the major movers on the NYSE. The stock closed 1.32% lower.

NASDAQ- Sage Therapeutics (SAGE) shares were among the major gainers on the NASDAQ. The stock closed 37.33% higher. MyoKardia (MYOK) ended the day 31.89% higher. Xenon Pharmaceuticals (XENE) ended the day 11.07% higher. Oncobiologics (ONS) shares were among the major losers on the NASDAQ. The stock closed 7.67% lower. XBiotech (XBIT) ended the day 5.74% lower. T2 Biosystems (TTOO) ended the day 4.98% lower.

NYSEMKT- Asterias Biotherapeutics (AST) shares were among the major movers on the NYSEMKT. The stock closed 3.14% higher.

OTC- Amarantus Bioscience Holdings (AMBS) shares were among the major movers on the OTC market. The stock closed 2.59% higher.

Company (Ticker) Short Interest as a % of Float % Change Days to Cover
bluebird bio (BLUE)

25%

19.8%

7

Blueprint Medicines (BPMC)

10.5%

36.6%

8

Bristol-Myers Squibb (BMY)

1%

-8.5%

2

Caladrius Biosciences (CLBS)

1.1%

0.9%

3

Calithera Biosciences (CALA)

13.2%

-22.3%

7

Cancer Genetics (CGIX)

2.4%

-14.4%

4

Capricor Therapeutics (CAPR)

1.1%

43%

1

Cara Therapeutics (CARA)

9.9%

39.3%

3

Carbylan Therapeutics (CBYL)

4%

-59.6%

1

Cardiome Pharma (CRME)

1.5%

-4.4%

12