After (MDT) announced that the company has reached a deal with Blue Cross and Blue Shield of Minnesota on an outcomes-based program for the company’s Guardian Connect Continuous Glucose Monitoring system, Stephens analyst Chris Cooley said the program could potentially represent an incremental headwind to Dexcom’s (DXCM) revenue growth if applied across a larger setting. However, Cooley is maintaining his calendar 2019 and 2020 estimates for Dexcom and keeps an Overweight rating on shares with a $170 price target.
Tuesday, April 9, 2019
Concert Pharmaceuticals price target lowered to $20 from $26 at JMP Securities
JMP Securities analyst Liisa Bayko lowered her price target on Concert Pharmaceuticals (CNCE) shares to $20 from $26 after USPTO ruled in favor of Incyte (INCY) that claims in Concert’s ‘149 patent are not patentable. Concert said it will appeal the decision, but Bayko thinks a reversal of the PTAB decision is unlikely. She now assumes only 5.5 years of exclusivity for CTP-543, continues to recommend Concert, stating that she sees a $1B opportunity in alopecia areata given the size, unmet need, and competitive landscape. Bayko keeps an Outperform rating on Concert shares.
https://thefly.com/landingPageNews.php?id=2890233
https://thefly.com/landingPageNews.php?id=2890233
Nightstar Therapeutics makes document available for Biogen acquisition
On March 4, the board of Nightstar Therapeutics (NITE) and Biogen Switzerland Holdings, a subsidiary of Biogen (BIIB), announced that they had reached agreement on the terms of a recommended acquisition whereby the entire issued and to be issued share capital of Nightstar will be acquired by Tungsten Bidco, a subsidiary of Biogen Switzerland. The acquisition is to be effected by means of a court-sanctioned scheme of arrangement under Part 26 of the Companies Act 2006 and is subject to the terms and conditions set out in the scheme document relating to the acquisition. Nightstar announced that the scheme document is being sent, or made available, to Nightstar Shareholders immediately. The scheme document contains, amongst other things, a letter from the chairman of Nightstar, the full terms and conditions of the scheme and the acquisition, an explanatory statement pursuant to section 897 of the Companies Act 2006, an expected timetable of principal events and details of the actions to be taken by Nightstar shareholders, together with the forms of proxy for the court meeting and the general meeting. Completion of the acquisition also remains conditional on the satisfaction or waiver of the other conditions set out in the scheme document and the approval of the court. The acquisition is expected to become effective during the middle of the year.
What Livongo and Change Healthcare’s IPOs means for digital health competitors
Digital healthcare investors have been opening their wallets, with the hopes that devices, algorithms and patients’ desire to control their personal health data will equal big business. Now these same investors are ready to see the payouts as these companies file for initial public offerings, according to CNBC.
Livongo, a provider of services and tools for patients to monitor chronic medical conditions, is leading the digital health IPO pack. The company has reportedly hired bankers for its IPO. It is expected to take time for public market investors to determine if the company’s business model can generate predictable revenue.
“There hasn’t [been] a true digital health IPO,” Marc Albanese, senior director of research at CB Insights, told CNBC. “So, there is a bit of pressure on Livongo.”
Change Healthcare is also leading the digital IPO trail. The company, which provides technology to reduce the costs of healthcare, filed its prospectus in March.
“To have a well-funded digital health company performing well and going public, it validates the digital health thesis,” Blake Wu, a health investor at venture capital firm New Enterprise Associates told CNBC.
Many of the digital health companies that have filed for IPOs have been familiar to Wall Street. Veeva Systems and AthenaHealth sell cloud-based software and Fitbit sells devices. Both business models were common knowledge on Wall Street.
The digital health companies making a push for IPOs now are a little different as they emphasize the combination of technology and services, according to CNBC. This might include app-based behavioral coaching or nudges to promote healthy behavior.
“Livongo is truly a cross between health and tech,” Mr. Albanese said. “Its performance will set the tone for how similar companies are received, which makes it so important.”
China online plastic surgery marketplace So-Young Intl files for $150M US IPO
So-Young International, a China-based online marketplace for plastic surgery services, filed on Monday with the SEC to raise up to $150 million in an initial public offering.
The Beijing, China-based company was founded in 2013 and booked $92 million in revenue for the 12 months ended December 31, 2018. It plans to list on the Nasdaq under the symbol SY. So-Young International filed confidentially on December 26, 2018. Deutsche Bank and CICC are the joint bookrunners on the deal. No pricing terms were disclosed.
Cancer biotech Turning Point Therapeutics sets terms for $125M IPO
Turning Point Therapeutics, an early stage biotech developing tyrosine kinase inhibitors for treating cancer, announced terms for its IPO on Monday.
The San Diego, CA-based company plans to raise $125 million by offering 7.4 million shares at a price range of $16 to $18. Insiders intend to purchase $50 million worth of shares in the offering (40% of the deal). At the midpoint of the proposed range, it would command a fully diluted market value of $524 million.
Turning Point Therapeutics was founded in 2013 and plans to list on the Nasdaq under the symbol TPTX. Goldman Sachs, SVB Leerink and Wells Fargo Securities are the joint bookrunners on the deal. It is expected to price during the week of April 15, 2019.
Immuno-oncology biotech Hookipa Pharma sets terms for $100 million IPO
Hookipa Pharma, a Phase 2 biotech developing T cell immunotherapies for various cancers, announced terms for its IPO on Monday.
The New York, NY-based company plans to raise $100 million by offering 6.7 million shares at a price range of $14 to $16. Insiders intend to purchase $40 million worth of shares in the offering (40% of the deal). At the midpoint of the proposed range, Hookipa Pharma would command a fully diluted market value of $412 million.
Hookipa Pharma was founded in 2011 and plans to list on the Nasdaq under the symbol HOOK. BofA Merrill Lynch, SVB Leerink and RBC Capital Markets are the joint bookrunners on the deal. It is expected to price during the week of April 15, 2019.
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