Appaloosa issued a statement in response to Allergan’s March 6 announcement that its drug, Rapastinel, failed a late stage study for treatment of major depressive disorder: “Yesterday’s announcement that Allergan’s marquee pipeline drug, Rapastinel, had spectacularly failed its Phase III trials should make apparent to all that the company’s “Open Science” business model is broken. With this latest fiasco, we again call on the company to install an independent chairman with suitable experience to bring new leadership to the board and rein in management’s predilection for value-destruction. We view this action as only one in a long list of difficult decisions the board will need to confront, which may include a change in senior management, separation of business units, merger or sale of the entire company. The board’s misplaced fear of “disrupting” Allergan is wearing thin as an excuse for inaction and can only perpetuate further erosion in the shareholders’ investment. In fact, disruptive action is entirely warranted under these circumstances.”
Thursday, March 7, 2019
Juul to market e-cigs as anti-smoking tool to employers, insurers, CNBC says
E-cigarette company Juul is attempting to pitch its product to companies and insurers who want to help their employees quite smoking tobacco as the company continues to fend off criticism that its e-cigarettes have caused an epidemic in teen smoking, CNBC’s Angelica LaVito and Christina Farr report. The company has tapped former Cardinal Health (CAH) executive Douglas Roberts to head its new “enterprise markets team,” which is centered on reaching deals with health plans, providers, self-insured employers and the public sector, LaVito and Farr report. That team currently includes 17 employees, Roberts told CNBC in an interview. The former Cardinal exec told CNBC that he opted to take the position with Juul because it was clear to him that large hospitals nationwide were seeking ways to make a major impact across their patient population and the role felt like a “natural opportunity” to do that. Publicly traded companies in the tobacco space include Altria Group (MO), British American Tobacco (BTI) and Philip Morris (PM).
J&J says rilpivirine/cabotegravir met primary endpoints in two Phase 3 studies
The Janssen Pharmaceutical Companies of Johnson & Johnson confirmed that the long-acting two-drug injectable regimen of rilpivirine and cabotegravir met its primary endpoints in two Phase 3 studies – the Antiretroviral Therapy as Long-Acting Suppression, or ATLAS, trial and the First Long-Acting Injectable Regimen, or FLAIR, trial. The 48-week results from both studies showed that Janssen’s rilpivirine and ViiV Healthcare’s cabotegravir, injected every four weeks, had similar efficacy in maintaining viral suppression in adults living with HIV-1 when compared to a standard of care, daily, oral three-drug regimen. These data were presented at the 2019 Conference on Retroviruses and Opportunistic Infections, or CROI. “The Phase 3 results from these studies show that a two-drug injectable treatment regimen may provide people living with HIV the option of managing their virus with just 12 injection regimens a year. If approved by regulators, this will be the first monthly dosing solution for people living with HIV and represents a major step for HIV treatment,” said Brian Woodfall, Global Head, Development, Infectious Diseases, Janssen Pharmaceutica NV.
Allergan shares to rebound after ‘widely expected’ failure, says Mizuho
Mizuho analyst Irina Koffler expects shares of Allergan to rebound following the “disappointing” results for its Phase III antidepressant, Rapastinel. The analyst previously attributed $3 per share in value to the program, with a 5% stock move in either direction, and notes that expectations were already low after management downplayed the product on its recent earnings call. She believes the failure was “widely expected” and reiterates a Buy rating on Allergan with a $200 price target.
https://thefly.com/landingPageNews.php?id=2875585
https://thefly.com/landingPageNews.php?id=2875585
Teva reinstated with a Buy at UBS
UBS analyst Navin Jacob reinstated coverage of Teva Pharmaceutical with a Buy rating and $22 price target. The U.S. generic industry is on a path to recovery, Jacob tells investors in a research note, citing his firm’s generic price erosion tracker data. The analyst sees 30% potential upside and views Teva’s 2019 guidance as a “hiccup.”
Philips to acquire healthcare IT systems from Carestream Health
Carestream Health has signed an agreement with Royal Philips to sell its healthcare information systems business to Philips. Carestream’s HCIS business unit provides imaging IT solutions to multi-site hospitals, radiology services providers, imaging centers and specialty medical clinics around the world. The business has developed strong customer relationships in attractive, high-growth healthcare segments and is positioned for continued growth and success. Additional terms of the transaction were not disclosed.
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