Monday, January 7, 2019
Molina Healthcare upgraded to Overweight from Neutral at MUFG
https://thefly.com/landingPageNews.php?id=2845065
Danaher Q4 EPS seen at or near high end, revenue growth above prior guidance
Danaher Corporation announced that its president and Chief Executive Officer, Thomas P. Joyce, Jr., will comment tomorrow on the company’s fourth quarter 2018 performance in a presentation at the J.P. Morgan Healthcare Conference in San Francisco, California at 8:00 a.m. PT. Mr. Joyce will communicate that fourth quarter 2018 core revenue growth is expected to be above the company’s previously announced guidance and adjusted diluted net earnings per share is expected to be at or near the high-end of the previously announced guidance.
https://thefly.com/landingPageNews.php?id=2845067
MediciNova receives notice of allowance for new MN-001/002 patent in Japan
MediciNova announced that it has received a Notice of Allowance from the Japan Patent Office for a pending patent application which covers MN-001, or tipelukast, and MN-002 for the treatment of “fibrosis” which includes a broad range of fibrosis / fibrotic disease in different organs due to different causes. Once issued, the patent maturing from this allowed patent application is expected to expire no earlier than June 2035. The allowed claims cover a composition for inhibiting or treating fibrosis using MN-001 or MN-002. The allowed claims cover oral administration including liquid and solid dosage forms.
https://thefly.com/landingPageNews.php?id=2845049
Takeda unlikely to sell OTC unit to pay Shire merger debts
Takeda’s $59 billion takeover of Shire is due to close tomorrow (Tuesday) and the company’s CEO Christophe Weber has already given some strong clues about the company’s strategy once the deal completes.
Last week Takeda announced three new research collaborations in immuno-oncology, and Weber gave more details about the company’s strategy after the deal closes.
According to Reuters, one thing Takeda will not be doing is selling its over-the-counter (OTC) business as a quick fix way of paying back some of the $32 billion bank loans it took out to finance the merger.
Reuters said that Takeda plans to sell up to $10 billion worth of unwanted assets – but Weber reportedly told a news conference that selling off the OTC unit will not be the company’s first priority.
Without elaborating further, he said: “We have some businesses outside of Japan where we are not really performing.”
Takeda’s shares rose nearly 10% in morning trading after the company announced it would issue around 770 million shares worth 5.85 trillion yen ($54.11 billion), outperforming the benchmark index, which was up around 2.7%.
The Japan Times reported that Weber said that the merged company’s annual consolidated sales are forecast to nearly double to $31.3 billion.
And Bloomberg reported that Weber believes that pharma mega-mergers have come back into vogue after years where smaller “bolt-on” acquisitions became the norm.
He cited Bristol-Myers Squibb’s $74 billion acquisition of Celgene as evidence that large mergers were becoming necessary to fund the risky R&D process to develop new drugs.
A key reason behind the Shire acquisition is to boost Takeda’s cash flow, in order to support its R&D efforts.
These R&D efforts will be vital as revenues from a new generation of medicines will be essential to pay off the huge debt needed to finance the merger.
“If you look at the top 10 pharmaceutical companies today, not a single one didn’t come from an M&A,” he said.
“M&A is always a key part of the industry. Why? Because we are in an industry which invests enormously in R&D, at risk.”
Piper Jaffray reiterates Overweight rating on Apyx after Q4 revenue beat
Piper Jaffray analyst Matt O’Brien reiterated an Overweight rating on Apyx Medical, formerly Bovie Medical, after the company reported preliminary Q4 revenues for continuing operations of $5.9M-$6.1M, better than the consensus estimate of $5.2M. O’Brien sees the “refocused salesforce firing on all cylinders” and a number of encouraging catalysts expected in 2019, including dermal resurfacing indication, and international and salesforce expansion, and encourages risk tolerant investors to look at this “rapidly growing technology leader.”
https://thefly.com/landingPageNews.php?id=2845029
Tactile Systems ‘confident’ about ‘20% plus revenue growth’ in 2019
Tactile Systems CEO Gerald Mattys states: “Looking ahead to 2019, we remain confident in our ability to deliver 20% plus revenue growth and improving profitability as we continue to expand our share of the $4+ billion U.S. market in lymphedema and chronic venous insufficiency.”
https://thefly.com/landingPageNews.php?id=2845045
Cannabis REIT to Acquire MedMen Real Estate
Treehouse Real Estate Investment Trust raises $133 million, will use funds to acquire properties from MedMen Enterprises Inc. along with other cannabis real estate
MedMen Enterprises Inc. (“MedMen” or the “Company”) (CSE: MMEN) (OTCQX: MMNFF) (FSE: A2JM6N) today announced that Treehouse Real Estate Investment Trust (“Treehouse”) has completed its first round of capital raise at $133 million and will partially use the funds to purchase properties from the Company.
The newly formed real estate investment vehicle looks to capitalize on the fast-growing cannabis industry in the U.S. that is projected to grow to $75 billion in gross sales by 2030, according to Wall Street research firm Cowen & Co.
“This capital raise further proves the U.S. cannabis industry today is more investable than ever,” said MedMen CEO and Co-founder Adam Bierman. “MedMen’s relationship with Treehouse will allow us to unlock significant value for MedMen shareholders by spinning out our real estate holdings and deploying the proceeds into accretive growth opportunities for the Company.”
Treehouse is a collaboration between MedMen and Stable Road Capital, a Venice, California-based investment firm with successful track records in real estate and cannabis. Treehouse is governed by an independent board. Treehouse has a management contract with MedMen to oversee day-to-day operations until Treehouse goes public, at which point management will be internalized.
It is expected that Treehouse’s initial sale-leaseback transactions will occur with MedMen. These potential transactions include real estate related to retail stores, and cultivation and production facilities. The Company intends to use the proceeds from the prospective transactions to assist in funding the buildout of its national footprint that includes 76 retail licenses and 16 cultivation and manufacturing licenses in 12 states. The Company currently operates 16 stores and 3 cultivation and manufacturing facilities.
Subsequent to the initial transaction, Treehouse will have a three-year right of first offer on additional MedMen-owned facilities and development projects. With the launch of Treehouse, MedMen has the opportunity to significantly reduce future capital expenditures related to its retail and cultivation licenses.
To provide further details regarding the transaction and strategy behind Treehouse, MedMen will host an analyst call with Treehouse and Company officials on Tuesday, January 8, 2019 at 8:00 a.m. Eastern.
Webcast Information:
A live audio webcast of the call will be available on the Events and Presentations section of MedMen’s website at: https://investors.medmen.com/events-and-presentations/default.aspx and will be archived for replay.
A live audio webcast of the call will be available on the Events and Presentations section of MedMen’s website at: https://investors.medmen.com/events-and-presentations/default.aspx and will be archived for replay.
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