Search This Blog

Wednesday, May 1, 2019

Charles River Labs Hit by Hackers, Some Client Data Compromised

Charles River Laboratories is the latest company to be hit by hackers.
The company disclosed the data breach in a filing with the U.S. Securities and Exchange Commission on Tuesday. The hacking occurred in March and the company said the data of about 1 percent of its total number of clients was compromised.
“While the investigation is ongoing, the Company has recently determined that some client data was copied by a highly sophisticated, well-resourced intruder,” the company said in its filing.
In its filing, Charles River said the percentage of clients who were affected by the data breach “does not necessarily equate to the potential revenue or financial impact related to this incident, which the company has yet to determine.” Charles River said as of this time, there is no indication that any of the client data that was determined to have been accessed was deleted, corrupted or altered. Charles River said it has notified all clients whose data was known to have been copied and compromised.
The hacking was first discovered in mid-March, Charles River disclosed. Upon discovery, the company coordinated an investigation with U.S. authorities and cybersecurity experts. Charles River Labs notified clients on April 30, the company said in its filing.
Charles River said it will aggressively move to further secure its information systems. The company will add enhanced security features and monitoring procedures to further protect its client data.

While Charles River has taken substantial steps to minimize unauthorized access into its information systems, the company said that until the ongoing remediation process is complete, it will be unable to determine whether or not the hacking incident has been entirely remediated.
“However, Charles River believes it has closed the point of entry employed by the intruder in connection with this incident. The company has not observed any further indications of continued unauthorized activity in its information systems,” Charles River said in its filing.
Last year, the federal National Counterintelligence and Security Center (NCSC) pegged biotechnology as a rich target for foreign hackers. According to the report, “biomaterials, biopharmaceuticals and new vaccines and drugs as of particular interest” to foreign hackers. Additionally, the government report said hackers are interested in garnering information on advanced medical devices, infectious disease treatment and genetically modified organisms.
“The United States remains a global center for research, development, and innovation across multiple high-technology sectors. Federal research institutions, universities, and corporations are regularly targeted by online actors seeking all manner of proprietary information and the overall long-term trend remains worrisome,” the NCSC report said.
In 2017, pharma giant Merck was the target of an attack. Merck & Co., among other companies, was targeted by a malware attack that was believed to have originated in Ukraine. The malware strain, known as NotPetya, is a type of ransomware, and it shut down computer systems and sought to extort funds from companies in order to release those compromised systems. When Merck was hit by the malware, the company said the event forced it to halt production, which hurt profits. It was enough to prompt federal lawmakers to take action after they feared drug shortages.

Pacira jumps 14% after Heron receives Complete Response Letter from FDA

Shares of Pacira (PCRX) after jumping after Heron Therapeutics (HRTX) received a Complete Response Letter from the FDA regarding its new drug application for HTX-011 for the management of postoperative pain. HTX-011 is a potential competitor to Pacira’s pain treatment Exparel. The CRL to Heron stated that the FDA is unable to approve the new drug application in its present form based on the need for additional manufacturing and non-clinical information, Heron said this morning in statement. “Based on the complete review of the NDA, the FDA did not identify any clinical safety or efficacy issues, and there is no requirement for further clinical studies or data analyses,” the company added. In premarket trading, Pacira shares are up 14% to $45.39 while Heron shares are down 24% to $16.55.

Exact Sciences price target raised to $115 from $95 at Craig-Hallum

Craig-Hallum analyst Per Ostlund raised his price target for Exact Sciences to $115 from $95 saying that while Q1 is typically thought of as a seasonally challenged quarter sequentially, the company blew past Cologuard volume guidance and raised its 2019 outlook. The analyst reiterates a Buy rating on the shares.

Teladoc price target lowered to $70 from $80 at Craig-Hallum

Craig-Hallum analyst Matt Hewitt lowered his price target for Teladoc to $70 from $80, while reiterating a Buy rating on the shares. The analyst views Q1 as a “solid” quarter that highlights the diversification of Teladoc’s revenue model, noting that despite flu volumes being down 32% year over year revenue grew by 23% organically, which enabled essentially in-line results.

Medidata downgraded earlier to Neutral from Buy at Dougherty

https://thefly.com/landingPageNews.php?id=2901109

Alnylam shares reacting to increased expense guidance, says Piper Jaffray

Piper Jaffray analyst Edward Tenthoff noted that Alnylam reported Q1 Onpattro sales of $26M, which beat his $14M estimate and the consensus forecast of $19M. Despite the Onpattro sales beat and trends that he said underscore the drug’s “best-in-class profile,” Tenthoff said the stock is reacting negatively to management having increased their 2019 expense guidance. The analyst, who raised his 2019 Onpattro sales forecast to $127M from $82M, keeps an Overweight rating and $142 price target on Alnylam. Near 11 am ET, Alnylam shares are down 4% to $85.49.

Allergan CEO Saunders wins vote to keep chairman role

Allergan Plc shareholders have voted down a nonbinding proposal that sought an immediate split of the roles of chairman and chief executive, with 61.3 percent of shareholders backing Chairman and CEO Brent Saunders.
Billionaire investor David Tepper’s hedge fund Appaloosa LP made the proposal, arguing that drugmaker Allergan currently has a questionable business strategy and excessive pay for executives.
Proxy advisory firms backed keeping the current structure. However, Appaloosa’s success in attracting the votes of a substantial minority highlights the displeasure of many investors.
The voting results represent 85.9 percent of shares eligible to vote, Allergan said in a statement on Wednesday.
Allergan, under pressure to rescue the company’s falling stock price, launched a review of its strategy last year. But that review is only likely to result in the sale of its relatively small infectious disease unit.
Appaloosa has voiced its discontent with the results of the review, and has called for a breakup or sale of the company, citing recent clinical failures such as that of its depression treatment rapastinel.
In an effort to fend off Appaloosa, Allergan agreed in March to split the chairman and CEO roles, but only at its next leadership change. Saunders, 49, has no plans to step down, a source close to the company told Reuters then.
The company has also replaced more than half of its board since 2017.
Saunders put together the current version of Allergan through a series of deals to roll up several pharmaceutical companies in 2014, and has run the company since then.
He built his reputation as a dealmaker, but he has struggled since Pfizer Inc walked away from a $160 billion deal to buy Allergan in 2016. Allergan’s shares have lost nearly half their value since then.
The company’s shares closed at $147 on the New York Stock Exchange on Tuesday.
Reuters on Tuesday had reported that enough votes had been cast for Allergan to prevail against Appaloosa.