24/7 Wall St. » CVTX

Gilead Wins CV Therapeutics Bid; Higher Bid Coming? (GILD, CVTX)

247wallst — Thu, 12 Mar 2009 13:10:23 +0000

Gilead Sciences, Inc. (Nasdaq: GILD) has agreed to buy CV Therapeutics, Inc. (Nasdaq: CVTX) for $20.00 per share in cash.

This deal is via a tender offer and second step merger. The board has agreed to recommend to its stockholders to tender their shares. This is interesting because CV’s board had fought off a $16.00 buyout from Astellas.

The transaction is valued at approximately $1.4 billion. Gilead believes it will be dilutive to 2009 earnings, will be neutral or accretive to 2010 earnings, and will be accretive to earnings in 2011 and beyond.

CV Therapeutics focuses on the development of small molecule drugs for the treatment of cardiovascular diseases. In 2008, its Ranexa and Lexiscan contributed to total revenue of $154.5 million. It also has a pipeline which includes multiple product candidates in evaluation stages for the treatment of atrial fibrillation, pulmonary diseases and diabetes.

The tender is subject to to a majority tender of holders and to regulatory approval. These should go through. Where this gets really interesting is that the stock is trading up at $20.40 in pre-market trading. Some are wondering if Astellas will come knocking on the door again.

JON C. OGG

Posted in Biotech, Mergers and Buy Outs Tagged: CVTX, GILD

CV Therapeutics Next In Bio-Health Merger Line (CVTX)

247wallst — Tue, 27 Jan 2009 08:41:38 +0000

CV Therapeutics, Inc. (NASDAQ: CVTX) is seeing a surge in its shares this morning. It looks like CV is the next biotech merger target now that Astellas Pharma Inc. submitted a $16.00 buyout offer to CV’s board of directors. The buyout offer is an all cash transaction offer for all of the outstanding shares of common stock. A 41% premium to yesterday’s close is also representative of a 33% gain above its 52-week high and roughly 200% from its 52-week low.

This merger offer is also not subject to financing conditions andwould value CV at $1 billion. This proposal was originallysent in a letter dated November 14 and Astellas was informed onNovember 21 that CV Therapeutics had rejected the proposal.

The company goes on to state that CV Therapeutics has subsequently declined toengage Astellas in any meaningful discussions regarding a transaction, even as recently as January 13. Astellas looks like it is taking this fight straight to CVTherapeutics’ shareholders. The company even noted, "Astellas hasbuilt a productive partnership with CV Therapeutics around Lexiscanover several years, and we have watched and helped the company growduring this time."

Back in 2007 and 2006 it looks like CV Therapeutics shares were were much higher. Andshares were even many times higher earlier this decade. But the mergerproposal represents a 69% premium to the 60-day average.

Shareholders now have some deciding to do. Analysts expect wide losses of -$0.85 EPS forall of 2009 on revenues of almost $225 million.

This is actually trading at a premium to the buyout price. Shares areup 50% at $17.05 with just under an hour until the market opens.

Jon C. Ogg
January 27, 2009

Posted in Biotech, Drug companies, Mergers and Buy Outs Tagged: CVTX

Top Pre-Market Analyst Downgrades (ACF, CLF, CVTX, PFE, SNY, THQI)

247wallst — Fri, 07 Nov 2008 08:08:13 +0000

These are some of the top analyst downgrades we have seen this Friday morning:

Americredit (ACF) Raised to Market Perform at FBR.
Cliff’s Natural resources (CLF) Cut to Market Perform at FBR.
CV Therapeutics (CVTX) Cut to Sell at Citigroup.
Pfizer Z(PFE) Started as Sell at Goldman Sachs.
Sanofi-Aventis (SNY) Cut to Sell at UBS.
THQ Inc. (THQI) Cut to Hold at Citigroup.

Jon C. Ogg
November 7, 2008

Posted in Analyst Calls Tagged: ACF, CLF, CVTX, PFE, SNY, THQI

Biotech Busine$$ Daily (ACAD, AMLN, CVTX, HALO, KOSN, MCU, NVAX, POZN, REGN, SIRT)

247wallst — Wed, 16 Apr 2008 11:18:56 +0000

If you thought biotech news was getting quiet going into earnings season, think again.

Acadia Pharmaceuticals Inc. (ACAD) presents Phase II data on pimavanserin, a treatment for Parkinson’s disease psychosis (PDP) at the 60th American Academy of Neurology Annual Meeting today. According the results from the study, pimavanserin is safe and effective at improving psychosis scores without hindering motor abilities. Shares are up $0.46 to $8.36 on a 52-week range of $7.63 to $17.33.

Amylin Pharmaceuticals Inc. (NASDAQ: AMLN) up almost 3% in mid-morning trading. They announced that the earnings call is schedule for March 21. Trading at $30.42 on a 52-week range of $23.75 to $53.25.

CV Therapeutics, Inc. (NASDAQ: CVTX) soaring today after they announced Tuesday that they will receive $185 milliion from TPG-Axon Capital for rights to the sales of Lexiscan, a drug for patients that are unable to exercise during heart tests and was granted FDA approval last Thursday. Shares are up over 15% to $8.63 on a 52-week range of $5.41 to $13.74.

Halozyme Therapeutics, Inc. (NASDAQ: HALO) announced pre-clinical findings in combinations of bisphosphonates and rHuPH20 at the American Association for Cancer Reseacrch conference today. The study showed that a combination of these molecules could reduce local irritation from chemotherapy by allowing a subcutaneous route of administration. Shares are up over 10% to $5.99 on a 52-week range of $4.19 to $11.00.

Kosan Biosciences Inc. (NASDAQ: KOSN) is still steadily rising after Monday announcement that Phase II testing for Epothilone KOS-1584 initiated. The drug targets patients with non-small cell lung cancer. Shares are up over 11% to $2.00 today. Monday, shares opened at $1.50. The 52-week range is $1.28 to $6.53.

Medicure Inc. (AMEX: MCU) up by 40% with the announcement that Phase II results for MC-1 and lisinpril for patients with type-II diabetes and hypertension will be presented at Arteriosclerosis, Thrombosis and Vascular Biology (ATVB) Annual Conference today. The data from the study was previously released. Shares are up 40% to $0.09 on a 52-week range of $0.05 to $1.64.

Novavax, Inc. (NASDAQ: NVAX) reported positive results in preclinical studies of Trivalent, a seasonal influenza vaccine. Phase II testing is hoped to begin in the third-quarter this year. Shares are up over 5% to $2.51. The 52-week range is $2.24 to $4.38.

Pozen, Inc. (NASDAQ: POZN) skyrocketing today on news that migraine drug Treximet has received FDA approval. They partnered with GlaxoSmithKline (GSK) for development of the drug. It is a follow up for Glaxo’s similar drug, Imitrex, which is set to lose patent protection in 2009. Pozen up 34% to $14.19 on a 52-week range of $8.29 to $19.75. Glaxo is up marginally to $42.57.

Regeneron Pharmaceuticals Inc. (NASDAQ: REGN) moving higher than the rest today on no new developments. Shares are up $1.37 to $19.60 on a 52-week range of $13.55 to $28.74.

Sirtris Pharmaceuticals, Inc. (NASDAQ: SIRT) published a report by Scientific Advisory Board Co-Chairs that showed first in-vivo data demonstrating that SIRT1 enzymes suppress tumor development in colon cancer cells. Shares are up almost 5% to $12.56 on a 52-week range of $9.50 to $21.99.

Rachel Lopez
April 16, 2008

CV Therapeutics Soars on TPG-Axon Financing (CVTX)

247wallst — Tue, 15 Apr 2008 16:46:37 +0000

CV Therapeutics, Inc. (NASDAQ: CVTX) has secured a deal with TPG-Axon Capital, where it will receive up to $185 million in exchange for the rights to 50% of CV Therapeutics’ royalty on North American sales of Lexiscan injection. As part of the deal, CV Therapeutics received $175 million on closing of the transaction and is eligible to receive a potential future milestone payment of $10 million.

TPG-Axon Capital is a private equity and public equity investment firm that was spun out of buyout firm Texas Pacific Group, and it is led by the former head of Goldman Sachs’ Principal Strategies Department, Dinakar Singh. Just on April 10, The FDA approved Lexiscan injection for use as a pharmacologic stress agent in radionuclide myocardial perfusion imaging in patients unable to undergo adequate exercise stress.

"CV" will retain the other 50% of royalty revenue rights from North American product sales and also may receive a royalty on another collaborations with Astellas Pharma US, Inc. The company is also calling this "non-dilutive financing" and noted that it has multiple product-related revenue streams.

It also now has the funds to become cash flow positive and meet its putable debt obligation coming in 2010 without additional financing. It is also pursuing a partner to help commercialize Ranexa and it noted this gives it more independence to be in a position of strength in negotiations. CV Therapeutics owns the rights for regadenoson outside of North America and expects to submit a marketing application to the European Medicines Agency by the end of this year.

This will likely cause some reduced revenue projections ahead as the company is signing away half of the North American rights. According to First Call, its revenue estimates for 2008 are $almost $143 million and 2009 revenues are expected to be almost $217 million. The company had about $179 million in cash and short term securities as of December 31, 2007, but its long-term debt is also listed as $399.5 million.

You can join our open email distribution list to hear about key calls, buybacks, IPO’s, special financings, restructurings and more.

Shares of CVTX closed down almost 4% at $7.45 today, but shares rose 19% to $8.90 in after-hours on this news. The 52-week trading range is $5.41 to $13.74 and the market cap prior to the pop was listed as $452 million.

Jon C. Ogg
April 15, 2008

Jon Ogg produces the Special Situation Investing Newsletter. He can be reached at jonogg@247wallst.com and he does not own securities in the companies he covers.

Biotech Busine$$ Daily (ALKS, CADX, CVTX, MNKD, GNBT, PPHM)

247wallst — Mon, 14 Apr 2008 12:16:42 +0000

Alkermes (NASDAQ: ALKS) and Johnson & Johnson Pharmaceutical Research and Developed today submitted paperwork seeking approval of their partnership drug, RISPERDAL CONSTA, to be allowed for treatment of bipolar disorder chronic relapse. The drug was already approved for treatment of schizophrenia in 2003. Shares of Alkermes are down to by $0.17 to $10.94 in mid-day trading on a 52-week range of $10.32 to $18.78.

Cadence Pharmaceuticals Inc. (NASDAQ: CADX) up over 8% today on no new developments to $6.74 off a 52-week range of $4.84 to $20.67. Cadence Pharmaceuticals is a development stage biopharmaceutical company with two products in Phase III testing, Acetavance and Omigard.

CV Therapeutics (NASDAQ: CVTX) down today despite FDA approval for its coronary artery treatment, Lexiscan, granted last Friday. The drug is injected into patients during heart tests that cannot exercise to increase blood flow in their arteries. The drug will be marketed by OTC company Astellas Pharma US Inc. and will pay CV Therapeutics $12 million now that drug has been approved. CV Therapeutics is down over 5% to $7.57 on a 52-week range of $5.41 to $13.74.

Mannkind Corp. (NASDSQ: MNKD) still slipping today on Pfizer’s insulin scare earlier this month. Pfizer markets an inhaled insulin product, Exubera, that recently studies showed it be connected with lung cancer in its users. Despite the failings of Pfizer’s inhaled insulin product and other developers of similar treatments (including Alkermes above), Mannkind intends to continue developing its similar product, Technosphere. Shares are down almost 7% to $2.33 today on a 52-week range of $2.15 to $15.65. Pfizer (NYSE: PFE) up marginally today to $20.53 on a 52-week range of $20.19 to $27.73.

Generex Biotechnology Corp. (NASDAQ: GNBT) could benefit from Pfizer’s and Mannkind’s struggles with inhaled insulin treatments. Generex’s product Oral-lyn is viewed as a competing oral insulin product that is safe and effective. Shares are up over 2% to $1.18 today on a 52-week range of $0.81 to $2.14.

Peregrine Pharmaceuticals Inc. (NASDAQ: PPHM) down almost 11% today after they announced that the pre-clinical study of their anti-PS Vascular Targeting Antibodies showed a broad range of potential for cancer treatment at the American Association of Cancer Research annual meeting. Shares are down to $0.44 on a 52-week range of $0.35 to $1.40.

Rachel Lopez
April 14, 2008

The 52-Week Low Club (NT)(DY)(GCI)(ADSK)(CVTX)

247wallst — Wed, 27 Feb 2008 16:03:17 +0000

Dycom Industries (DY) Posts loss on lawsuit settlement. Falls to $11.88 from 52-week high of $34.13.

Nortel (NT) Big loss and lay-offs. Down to $9.67 from 52-week high of $30.27.

Journal Register (JRC) Sells off to $1.19 to more bad news from newspaper Industry. Has 52-week high of $7.46.

Gannett (GCI) More newspaper industry woes. Drops down to $31.50 from 52-week high of $62.70.

CV Therapeutics (CVTX) Misses Q4 numbers and sells down to $6.13 from 52-week high of $13.74.

Autodesk (ADSK) Bad quarter pushes share to $32.36 from 52-week high of $51.32.

EnerNoc (ENOC) Fourth quarter loss drops shares to $16.25 from 52-week high of $50.50.

Douglas A. McIntyre

CV Therapeutics Earnings Overshadows Takeover Spec

247wallst — Tue, 31 Jul 2007 13:45:19 +0000

Posted by Thomas Catino

Ant&Sons

Shares of CV Therapeutics Inc. (CVTX) are slumping, down $.60, or 5.52%, to $10.26 on moderate volume. It’s been a volatile ride for the stock that is continuing this morning after the company posted…continued

Pre-Market Stock News (July 10, 2007)

247wallst — Tue, 10 Jul 2007 07:08:07 +0000

(AA) Alcoa $0.81 EPS vs $0.81e; will likely have to sweeten Alcan bid before getting any approval from Alcan.
(BOT) CBOT holders approve the CME merger offer.
(CACS) Carrier Access lowered guidance.
(CAKE) Cheesecake Factory put revenues at $373.2 million vs $371 million consensus estimate.
(CVTX) CV Therapeutics identified possible anti-diabetic characteristics in Ranexa.
(DELL) Dell has new smaller business initiative being released today.
(ENCY) Encysive announced its CFO is resigning.
(FORM) Form Factor in strategic pact with Elpida for test cost reductions.
(GMST) Gemstar TV-Guide hired UBS to explore strategic alternatives.
(HD) Home Depot issued earnings warning, but stock called flat to marginally higher.
(LXK) Lexmark issued earnings warning.
(SHLD) Sears lowered guidance to %0.98-1.24 EPS (vs. $2.12 est.) because of home appliances and other sales being weaker; increased share buyback plan.
(THRX) Theravance announced positive results from phase II clinical study that met primary endpoints fot staph and other skin based infections.
(UNCA) Unica lowered guidance.
(WDFC) WD-40 $0.44 EPS vs $0.47e; lowered annual EPS guidance.

Jon C. Ogg
July 10, 2007

Pre-Market Stock News (June 18, 2007)

247wallst — Mon, 18 Jun 2007 06:53:58 +0000

(AA) An ALCOA bid from BHP may be kindled according to numerous M&A reports.
(ADVNA) Advanta trades ex-split to reflect a 3-2 stock split.
(AGU) Agrium said earnings will be at or above the upper end of its $1.45 to $1.55 range.
(BBI) Blockbuster is going to favor the Blu-Ray HD discs.
(BNHNA) Benihana $0.35 EPS vs $0.30e.
(BWLD) Buffalo Wild Wings trades ex-split to reflect a 2-1 stock split.
(CEPH) Cephalon received FDA Marketing approval of Nuvigil for excessive sleepiness.
(CVTX) CV Therapeutics traded up on Cramer recommendation.
(DJ) Dow Jones may get a rival bid from Pearson and General Electric.
(ECIL) ECI Telecom in discussions for potential takeovers at $10.00 per share.
(ENCY) Encysive Pharma trading down 50%; announced third ‘approvable’letter from FDA for Thelin for treating pulmonary arterial hypertension, but it did not demonstrate the evidence of effectiveness needed for approval and may have to drastically cut costs.
(ESC) Emeritus Corp announces a 10.5 million share common stock offering; 9 million shares were from the company and 1.5 million from selling shareholders.
(FRN) Friendly Ice Cream going private at $15.50.
(FTEK) Fuel-Tech gets two orders totaling $2 million.
(GCO) Genesco gets $54.50 per share offer and buyout from Finish Line.
(KERX) Keryx Bio announced its CFO is resigning.
(LXRX) Lexicon Pharma secured a major investment in the company as a two part investment: $205 million and $60 million.
(MSFT) Microsoft making investment in Chinese television and media makers to change IPTV to Mediaroom.
(NVDA) NVIDIA noted as speculative chip play by Cramer.
(OBAS) Optibase won encoder pact from Huawei for IPTV.
(PAY) Verifone announced a $275 million senior convertible note offering.
(THRM) Thermage says FDA clears indication for Thermacool system.
(VICL) Vical licensee AnGes MG announces positive results of Phase 3 angiogenesis trial in Japan.
(VRAZ) Veraz platform chosen by Golden Telecom for an upgrade of its TDM network to a next-generation network.
(XFML) Xinhua Finance Media wins contract to re-brand Hebei Movie & Drama TV channel.

Jon C. Ogg
June 18, 2007