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Pharma Stock Roundup: Acquisitions & Deals Pick Up Pace, Aerie Up on Positive Data
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Acquisitions as well as collaborations are picking up pace with Bayer (BAYRY - Free Report) finally signing a merger agreement with Monsanto and Allergan announcing its decision to acquire Vitae. Moreover, companies like Teva (TEVA - Free Report) and Sanofi (SNY - Free Report) announced collaborations that involve the use of technology in managing diseases and treatments.
Recap of the Week’s Most Important Stories
Bayer to Buy Monsanto, Allergan to Acquire Vitae: After a lot of back and forth, Bayer and Monsanto have finally agreed on merger terms with a deal being announced for approximately $66 billion. With this deal, Bayer is looking to strengthen and grow its Crop Science business (Read more: Monsanto and Bayer Agree on $66 Billion All-Cash Deal).
Meanwhile, Allergan continues with its acquisition spree – just a week after acquiring private, clinical-stage biotech company RetroSense, Allergan announced that it will be acquiring clinical-stage biotech company, Vitae, for approximately $639 million. The acquisition, scheduled to close by year end, will see Allergan boosting its dermatology pipeline (Read more: Allergan to Buy Vitae Pharma to Boost Dermatology Suite). Vitae’s shares shot up a whopping 157.4% on the announcement.
Aerie Up on Positive Eye Drug Data: Clinical-stage pharma company Aerie’s shares soared on positive 90-day data on its experimental eye disease treatment, Roclatan, from a late-stage study. Depending on successful study completion, Aerie could file for FDA approval towards the end of next year. Roclatan is currently in another late-stage study with top-line efficacy data expected in the second quarter of 2017 (Read more: Aerie Stock Up on Positive Phase III Data on Roclatan). Aerie is also looking to raise $50 million through the issuance of shares.
Updates on Pfizer’s Chantix & Ertugliflozin: Pfizer (PFE - Free Report) and Merck’s experimental diabetes treatment, ertugliflozin, fared well in a late-stage study conducted in type II diabetes patients. Phase III data were presented at the annual meeting of the European Association for the Study of Diabetes (EASD). The companies intend to file for FDA approval by year end with other regulatory applications expected in 2017.
Meanwhile, the boxed warning on the label of Pfizer’s smoking cessation drug, Chantix, could get removed considering the company got a favorable vote at a joint FDA advisory panel meeting (Read more: FDA Panel Suggests Removing Warning from Pfizer's Chantix).
Pharma-Tech Deals Picking Up Pace: Collaborations between pharma and tech companies seem to be picking up pace with a couple of deals being announced this week.
Teva, which has a presence in the branded as well as generics market, said that it is collaborating with Intel to develop a wearable device that can be used to produce continuous objective data that will help increase the understanding of disease progression in Huntington disease patients as well as the impact of treatment on their quality of life.
Meanwhile, French drugmaker Sanofi is teaming up with Verily Life Sciences LLC, (formerly Google Life Sciences), an Alphabet company, to set up a joint venture (JV) - Onduo. The JV will develop comprehensive solutions for type II diabetics that will combine devices, software, medicine, and professional care to enable simple and intelligent disease management (Read more: Sanofi forms Diabetes Joint Venture with Alphabet).
Most of the major pharma stocks were down slightly over the last five trading days with the NYSE ARCA Pharmaceutical Index declining 0.6%. While AstraZeneca (AZN - Free Report) rose 1.9% during this period, Pfizer declined 1.7%. Over the last six months, Bristol-Myers declined 12.1% while Merck was up 19% (See the last pharma stock roundup here: Drug Pricing Remains in Focus, Merck Drops Odanacatib).
What's Next in the Pharma World?
Watch out for the usual pipeline and regulatory updates including EASD data as well as deals and collaborations.
Now See Our Private Investment Ideas
While the above ideas are being shared with the public, other trades are hidden from everyone but selected members. Would you like to peek behind the curtain and view them? Starting today, for the next month, you can follow all Zacks' private buys and sells in real time from value to momentum . . . from stocks under $10 to ETF and option moves . . . from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for Zacks' secret trades >>
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Pharma Stock Roundup: Acquisitions & Deals Pick Up Pace, Aerie Up on Positive Data
Acquisitions as well as collaborations are picking up pace with Bayer (BAYRY - Free Report) finally signing a merger agreement with Monsanto and Allergan announcing its decision to acquire Vitae. Moreover, companies like Teva (TEVA - Free Report) and Sanofi (SNY - Free Report) announced collaborations that involve the use of technology in managing diseases and treatments.
Recap of the Week’s Most Important Stories
Bayer to Buy Monsanto, Allergan to Acquire Vitae: After a lot of back and forth, Bayer and Monsanto have finally agreed on merger terms with a deal being announced for approximately $66 billion. With this deal, Bayer is looking to strengthen and grow its Crop Science business (Read more: Monsanto and Bayer Agree on $66 Billion All-Cash Deal).
Meanwhile, Allergan continues with its acquisition spree – just a week after acquiring private, clinical-stage biotech company RetroSense, Allergan announced that it will be acquiring clinical-stage biotech company, Vitae, for approximately $639 million. The acquisition, scheduled to close by year end, will see Allergan boosting its dermatology pipeline (Read more: Allergan to Buy Vitae Pharma to Boost Dermatology Suite). Vitae’s shares shot up a whopping 157.4% on the announcement.
Aerie Up on Positive Eye Drug Data: Clinical-stage pharma company Aerie’s shares soared on positive 90-day data on its experimental eye disease treatment, Roclatan, from a late-stage study. Depending on successful study completion, Aerie could file for FDA approval towards the end of next year. Roclatan is currently in another late-stage study with top-line efficacy data expected in the second quarter of 2017 (Read more: Aerie Stock Up on Positive Phase III Data on Roclatan). Aerie is also looking to raise $50 million through the issuance of shares.
Updates on Pfizer’s Chantix & Ertugliflozin: Pfizer (PFE - Free Report) and Merck’s experimental diabetes treatment, ertugliflozin, fared well in a late-stage study conducted in type II diabetes patients. Phase III data were presented at the annual meeting of the European Association for the Study of Diabetes (EASD). The companies intend to file for FDA approval by year end with other regulatory applications expected in 2017.
Meanwhile, the boxed warning on the label of Pfizer’s smoking cessation drug, Chantix, could get removed considering the company got a favorable vote at a joint FDA advisory panel meeting (Read more: FDA Panel Suggests Removing Warning from Pfizer's Chantix).
Pfizer is a Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Pharma-Tech Deals Picking Up Pace: Collaborations between pharma and tech companies seem to be picking up pace with a couple of deals being announced this week.
Teva, which has a presence in the branded as well as generics market, said that it is collaborating with Intel to develop a wearable device that can be used to produce continuous objective data that will help increase the understanding of disease progression in Huntington disease patients as well as the impact of treatment on their quality of life.
Meanwhile, French drugmaker Sanofi is teaming up with Verily Life Sciences LLC, (formerly Google Life Sciences), an Alphabet company, to set up a joint venture (JV) - Onduo. The JV will develop comprehensive solutions for type II diabetics that will combine devices, software, medicine, and professional care to enable simple and intelligent disease management (Read more: Sanofi forms Diabetes Joint Venture with Alphabet).
Performance
LARGE CAP PHARMA Industry Price Index
LARGE CAP PHARMA Industry Price Index
Most of the major pharma stocks were down slightly over the last five trading days with the NYSE ARCA Pharmaceutical Index declining 0.6%. While AstraZeneca (AZN - Free Report) rose 1.9% during this period, Pfizer declined 1.7%. Over the last six months, Bristol-Myers declined 12.1% while Merck was up 19% (See the last pharma stock roundup here: Drug Pricing Remains in Focus, Merck Drops Odanacatib).
What's Next in the Pharma World?
Watch out for the usual pipeline and regulatory updates including EASD data as well as deals and collaborations.
Now See Our Private Investment Ideas
While the above ideas are being shared with the public, other trades are hidden from everyone but selected members. Would you like to peek behind the curtain and view them? Starting today, for the next month, you can follow all Zacks' private buys and sells in real time from value to momentum . . . from stocks under $10 to ETF and option moves . . . from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for Zacks' secret trades >>