Over the past week, a few biotech companies made absolutely massive runs, either up and down. In the past year, the health care sector was on fire from positive trials, U.S. Food and Drug Administration (FDA) approvals and mergers and acquisitions, but results are becoming more mixed as the valuation of these companies comes into question. Not to mention we might be in a bear market as well. These companies 24/7 Wall St. has picked stood out from the rest with big moves over the course of last week. We have included information about each company, as well as recent trading activity and the consensus price target.
Affymetrix and Thermo Fisher Scientific
Word that it will be acquired had Affymetrix Inc. (NASDAQ: AFFX) absolutely soaring early on Monday. Thermo Fisher Scientific Inc. (NYSE: TMO) is making the acquisition, to the tune of roughly $1.3 billion, or $14.00 per share. Both boards of directors unanimously approved the transaction, but it is still subject to the approval of Affymetrix shareholders and regulators.
Thermo Fisher expects to realize total synergies of approximately $70 million by year three following the close, consisting of approximately $55 million of cost synergies and approximately $15 million of adjusted operating income benefit from revenue-related synergies. Also Affymetrix shareholders are getting a premium of 52% from last Friday’s close of $9.21.
Over the course of the past week, Affymetrix shares rose 50%, and they are up 37.5% year to date. The stock traded at $13.91 per share on Friday’s close. It has a consensus analyst price target of $11.93 and a 52-week trading range of $8.28 to $14.00.
Thermo Fisher shares closed at $132.76, with a consensus price target of $158.19 and a 52-week range of $117.10 to $143.65.
Anavex Life Sciences
Anavex Life Sciences Corp. (NASDAQ: AVXL) was one of the stocks helping to prop up the market in Monday’s session. It reported a positive dose-response relationship has been observed in a pre-planned interim analysis of data from the ongoing Phase 2a trial of Anavex 2-73 for treatment of mild to moderate Alzheimer’s disease. On Monday the stock was up about 10%; however, this gain was short-lived as the broad markets pulled the stock down over the course of the week.
Last week, shares fell 13.7%, and they are down nearly 28.7% year to date. Anavex was trading at $4.01 on Friday’s close. The stock has a consensus price target of $10.16 and a 52-week range of $3.16 to $14.84.
In Monday’s session, Halozyme Therapeutics Inc. (NASDAQ: HALO) hit a new 52-week low, and it continued to push lower over the course of the week. This followed the release of a business update at JPMorgan’s 34th Annual Healthcare Conference. Needless to say, this business update did not meet investor expectations. The company provided financial guidance for the 2016 full year, saying it expects revenue in the range of $110 million to $125 million. Cash flow is expected to be between $35 million and $55 million, and the year-end cash balance is expected to be between $140 million and $160 million. Consensus estimates from Thomson Reuters call for a net loss of $0.45 per share on $130.92 million in revenue for the 2016 full year.
However, shares fell 32% last week and are down 41.8% year to date. Halozyme ended the week at $10.10 per share. The stock has a 52-week trading range of $8.75 to $25.25.