Piper Jaffray analyst Sarah James raised her price target for Molina Healthcare to $165 and keeps an Overweight rating on the shares. Puerto Rico finalized the auto assignment process for the $2.2B contract starting November 1, and while Molina is is not confirming the impact, the analyst believes it could be a $150M revenue headwind for the company. Nonetheless, James feels confident in the company’s Q3 results. She believes much of the turnaround success demonstrated in Q2 “will continue to have lasting impacts such as network design and contracting and admin. efficiency.”
Wednesday, September 26, 2018
Alexion to acquire Syntimmune for upfront payment of $400M
Alexion Pharmaceuticals and Syntimmune announced that they have entered into a definitive agreement for Alexion to acquire Syntimmune, a clinical-stage biotechnology company developing antibody therapeutics targeting the neonatal Fc receptor. SYNT001 – a humanized monoclonal antibody that inhibits the interaction of FcRn with Immunoglobulin G and IgG immune complexes – has the potential to improve treatment in a number of rare IgG-mediated diseases. SYNT001 is currently being evaluated in Phase 1b/2a studies in patients with warm autoimmune hemolytic anemia and in patients with pemphigus vulgaris or pemphigus foliaceus and has demonstrated proof of mechanism showing rapid IgG reduction. Under the terms of the agreement, Alexion will acquire Syntimmune for an upfront payment of $400M, with the potential for additional milestone-dependent payments of up to $800M, for a total value of up to $1.2B. Alexion’s acquisition of Syntimmune is subject to the satisfaction of customary closing conditions, including approval from relevant regulatory agencies. Pending these approvals, the transaction is expected to close in the fourth quarter of 2018. Alexion intends to finance the acquisition through cash on hand.
Seattle Genetics price target raised to $85 from $77 at JPMorgan
JPMorgan analyst Cory Kasimov raised his price target for Seattle Genetics to $85 saying he’s bullish on the potential success of ECHELON-2, which is expected to readout in Q4. The analyst, however, thinks expectations from investors are “relatively high.” Nevertheless, another successful readout and material line extension for Adcetris could help maintain the stock’s “impressive recent momentum,” Kasimov tells investors in a research note. He keeps an Overweight rating on Seattle Genetics.
Merck board rescinds mandatory CEO retirement policy
Merck announced that its Board of Directors has rescinded its policy subjecting the company’s CEO to mandatory retirement at age 65. Merck also announced that its current CEO, Kenneth Frazier, has agreed to remain in his position beyond December 2019, when he turns 65.
Concert amends protocol of Phase 2a trial to evaluate alopecia med
Concert Pharmaceuticals announced that it will include an additional cohort of patients in the Phase 2a trial evaluating CTP-543. The protocol amendment provides for additional patients to be enrolled in the trial in order to evaluate a 12 mg dose of CTP-543 or placebo twice daily for 24 weeks. In 3Q18, an independent Data Monitoring Committee conducted a planned interim safety data review after patients in the trial had been dosed with an 8 mg dose of CTP-543 or placebo twice daily for at least 12 weeks. Based on this review, the DMC provided its recommendation to continue with the current 8 mg cohort to completion and also provided support for an additional cohort to evaluate the 12 mg dose twice daily. The company has initiated enrollment in the 12 mg cohort. The company also expects to report topline data from the 4 mg and 8 mg cohorts of the Phase 2a trial in 4Q18. The Phase 2a trial is a double-blind, randomized, placebo-controlled, sequential dose trial to evaluate the safety and efficacy of CTP-543 in adult patients with moderate-to-severe alopecia areata. With the protocol amendment, patients are randomized to receive one of three doses of CTP-543 or placebo twice daily. Enrollment in the 4 mg and 8 mg cohorts is complete and enrollment in the 12 mg cohort is ongoing. The primary outcome measure will utilize the severity of alopecia tool after 24 weeks of dosing.
Evofem initiated at Cantor Fitzgerald
Evofem initiated with an Overweight at Cantor Fitzgerald. Cantor Fitzgerald analyst William Tanner started Evofem Biosciences with an Overweight rating and $9 price target. The analyst believes the company’s multi-purpose vaginal pH regulator technology will aid in the creation of novel products for women.
Cantor says concerns over Amarin IP ‘making a mountain out of a molehill’
After speaking with the company and reviewing the public record of its patents and abbreviated new drug application-related matter, Cantor Fitzgerald analyst Louise Chen believes concerns over Amarin’s intellectual property are “making a mountain out of a molehill.” Vascepa’s intellectual property will keep out generics until August 2029, Chen tells investors in a research note. She sees peak sales potential of “billions of dollars” and reiterates an Overweight rating on Amarin with a $15 price target.
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