TORONTO, Dec. 13, 2020 /CNW/ -
Sunday 13/12/2020
PICK-2: 0 5
PICK-3: 0 8 9
PICK-4: 4 5 5 8
ENCORE: 0016342
DAILY KENO
1, 2, 14, 15, 16, 18, 20, 22, 24, 26,
27, 34, 35, 39, 40, 41, 46, 58, 60, 70.
SOURCE OLG Winners
View original content: http://www.newswire.ca/en/releases/archive/December2020/13/c3929.html
What are the fastest-growing stocks to watch in 2021? Here's a list featuring GRWG stock, Square, Micron and five other stocks expecting up to 144% growth.
Pfizer coronavirus vaccine distribution is starting. Elon Musk said Tesla demand has a high class problem. AMD and Shopify are near buys.
Amid COVID-19, Congress enacted changes to help people tap into retirement accounts to stay afloat. Some apply to 2020 only. Others will last longer.
Seniors need to watch out for property taxes, sales taxes and taxes on Social Security.
Oracle Corporation (NYSE: ORCL) has joined the list of tech companies that haved their headquarters out of California, Bloomberg has reported.What Happened: The computer technology giant announced on Friday that it had moved its headquarters to Austin, Texas, from Silicon Valley."Oracle is implementing a more flexible employee work location policy and has changed its corporate headquarters from Redwood City, California, to Austin, Texas. We believe these moves best position Oracle for growth and provide our personnel with more flexibility about where and how they work," CNBC quoted the company's spokesperson.Oracle believes that by implementing a "more modern approach to work," the quality of employees' lives and approach to work will get better.Other offices in places including California, Massachusetts, Denver, Orlando, Seattle and Florida will continue operating, according to Oracle's official filing.Why It Matters: Tech companies, including automaker Tesla Inc (NASDAQ: TSLA) and technology pioneer HP Inc (NYSE: HPQ), have been fleeing from California amid the pandemic. "This has turned into an absolute tidal wave," Texas Governor Greg Abbott said. "They are looking for a state that gives them the independence, the autonomy and the freedom to chart their own course."He emphasized a lower cost of doing business and fewer taxes."I have been on the phone on a weekly basis with CEOs across the country, and it's not just California. We're working across the board because the times of COVID have exposed a lot. They've exposed ... that you really don't have to be in Manhattan, for example, in order to be involved in the trading business or the investment business."Price Action: Oracle shares were flat in the postmarket trading session on Friday, down by 0.017% to close at $60.60.See more from Benzinga * Click here for options trades from Benzinga * US Allows Deadline On TikTok Deal To Lapse, Talks To Continue(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The 10-year Treasury yield has been less than 1% since March as well, and income investors once again have few attractive options. First on the list is Target. Perhaps its dividend yield of 1.6% leaves something to be desired for most income investors, but rest assured, as it's the only one of the 15 picks yielding less than 2%.
Nasdaq said on Friday it will remove shares of four Chinese construction and manufacturing companies from indexes it maintains in response to a U.S. order restricting purchase of their shares. The securities, which are not traded on the Nasdaq exchange, will be removed from the indexes on Dec. 21. A White House executive order last month barred U.S. investors from buying securities of blacklisted firms, starting in November 2021.
Elon Musk is calling on his company to step on the gas to get production moving faster.What Happened: In an email obtained by EV news site Electrek, the Tesla Inc (NASDAQ: TSLA) CEO says that the current demand for its products exceeds production capacities, calling it a "high-class problem.""To ensure that we have the best possible outcome and earn the trust of the customers and investors who have placed their faith and hard-earned money with us, we need to increase production for the remainder of this quarter as much as possible," says the email to employees.He further adds that he would only send this kind of email "if it really mattered."Why It Matters: This is the second time Musk has addressed the company's employees this month. On Dec. 1, he talked in an email about the importance of spending carefully, despite the stock reaching new highs.The Tesla founder said that investors have faith in the company's future profits, adding that if "at any point, they conclude that's not going to happen, our stock will immediately get crushed like a souffle under a sledgehammer!"He noted that profitability is "very low" at around 1% for the past year.Tesla aims to deliver a record 500,000 vehicles as part of its end-of-year goals.Price Action: Tesla shares closed at $609.99, down 2.72%, on Friday. It traded 0.39% lower, at $607.64, in the post-market session.Image: Photo shared on Elon Musk's Twitter pageSee more from Benzinga * Click here for options trades from Benzinga * As Oracle Becomes Latest Company To Move To Texas, Governor Says He's Been Talking With 'CEOs Across Country' * Buyers Of Tesla Shorts Still Waiting For Delivery After 5 Months: Financial Times(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The Chinese electric-vehicle makers’ American depositary receipts have soared this year on hopes for the growth of China’s electric-vehicle market. All three companies are now priced for perfection, and taking profits seems prudent.
Each week Trifecta Stocks identifies names that look bearish and may present interesting investing opportunities on the short side. Using technical analysis of the charts of those stocks, and, when appropriate, recent actions and grades from TheStreet's Quant Ratings, we zero in on five names. While we will not be weighing in with fundamental analysis, we hope this piece will give investors interested in stocks on the way down a good starting point to do further homework on the names.
* This weekend's Barron's cover story makes a case for taking profits on Chinese electric vehicle makers. * Other featured articles examine who is hurt if Chinese companies are delisted, an outlook for the markets and money management trends, and lessons from a crazy week in IPOs. * Also, the prospects for an auto insurer, two old-school stocks still offering growth and a semiconductor company abandoned by the iPhone maker."NIO, XPeng, and Li Aren't the Next Tesla. Time to Unplug From Their Shares" by Al Root makes a case that shares of Chinese electric vehicle makers Li Auto Inc. (NASDAQ: LI), Nio Inc (NYSE: NIO) and Xpeng Inc (NYSE: XPEV) are now priced for perfection and taking profits seems prudent.Reshma Kapadia's "Delisting Chinese Companies Could Be Bad for Investors. But It's the Right Thing to Do" suggests that Chinese companies that do not adhere to U.S. audit and accounting standards could be kicked off U.S. exchanges. Does that include Alibaba Group Holding Ltd (NYSE: BABA)?In "Mercury General's Hefty 5.4% Yield Is Just One of the Auto Insurer's Many Charms," Andrew Bary points out that auto insurer Mercury General Corporation (NYSE: MCY) gives investors ample income as they await a potential sale of the company after the death of its 99-year-old founder.BlackRock, Inc. (NYSE: BLK) President Rob Kapito shares his outlook for the markets and his thoughts on the big trends in money management in "BlackRock's President on the Outlook for Stocks" by Leslie P. Norton. See where the world's largest money management firm is headed next.In Jack Hough's "Starbucks and Disney Can Still Offer Investors Growth," see how two old leaders, Starbucks Corporation (NASDAQ: SBUX) and Walt Disney Co (NYSE: DIS), set ambitious goals at their investor days last week. Find out how each stock stalwart still can offer investors growth."9 Lessons After a Crazy Week for IPOs" by Eric J. Savitz indicates that, even after AirBnB Inc (NASDAQ: ABNB), DoorDash Inc (NYSE: DASH) and others exploded into the market recently, there are still another 500 unicorns (that is, private companies with $1 billion-plus values) waiting in the wings.See also: Benzinga's Bulls And Bears Of The Week: Boeing, Netflix, Nike, Starbucks And MoreWith trillions of dollars in index funds tracking the S&P 500, and trillions in actively managed funds benchmarked against the index, a whole lot of investors could be forced to buy Tesla Inc (NASDAQ: TSLA) stock at inflated values, according to Evie Liu's "Tesla Is Joining the S&P 500. Why This Could Be a Problem for Many Investors."In "Dominion Energy's Dividend Cut Shows the Danger of High Debt," Lawrence C. Strauss examines how Dominion Energy Inc (NYSE: D) became "overextended," according to one portfolio manager and analyst. Also find out why an analyst has turned bullish on the Dividend Aristocrats (companies hiking their dividends for 25 consecutive years).Eric J. Savitz's "Qualcomm Stock Tumbles on Report Apple Will Build Its Own Modem Chips" says that the threat of Apple Inc (NASDAQ: AAPL) modem development really is a risk for QUALCOMM, Inc. (NYSE: QCOM) investors, but it is not a new risk: Apple recently chose to produce its own microprocessors for Mac laptops, too.Also in this week's Barron's: * Investment advice from a poker star and behavior specialist * Common behavioral mistakes that derail retirement * Why to be wary of celebrity-backed SPACs * How to invest in a market that keeps bouncing back * Why it is good that soaring IPOs cannot lift the market * Saudi Arabia as another pipeline for IPOs * Whether natural gas prices will continue to rise * Book recommendations from business leaders and cultural influencers * The five types of retirement savers * What to know now that Brexit is almost here * Why iconic rock songs are suddenly hot commoditiesAt the time of this writing, the author had no position in the mentioned equities.Keep up with all the latest breaking news and trading ideas by following Benzinga on Twitter.Photo courtesy: Jengtingchen via WikimediaSee more from Benzinga * Click here for options trades from Benzinga * Notable Insider Buys Of the Past Week: Avis Budget, Biotech IPOs And More * Benzinga's Bulls And Bears Of The Week: Boeing, Netflix, Nike, Starbucks And More(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Buying a stock is easy, but buying the right stock without a time-tested strategy is incredibly hard. So what are the best stocks to buy now or put on a watchlist?
The dot-com stocks were money-losing, cash-burning, crazily priced internet plays. Today’s crop of hot stocks are substantial, innovative companies. What the two have in common: stratospheric market valuations.
SolarEdge, Twilio, Innovative Industrial Properties, EXP World and AMD are five top stocks to watch heading into the end of a wild 2020.
In 2020, biotechs have taken center stage. There are several biotech stocks that could generate stellar returns over the near future, according to Wall Street analysts. However, one should be aware that many of these stocks are risky as they are largely impacted by any news related to the development of their key drugs and regulatory approvals.Bearing this in mind, we will use TipRanks’ Stock Comparison tool to place BioXcel Therapeutics and TG Therapeutics alongside each other and select the biotech stock offering higher returns. We are talking about over 100% upside potential here.BioXcel Therapeutics (BTAI)BioXcel is a clinical-stage biopharma company that uses artificial intelligence to develop drugs across the neuroscience and immuno-oncology spaces. Currently, the company is not generating any revenue as it does not have any approved drugs on the market. That said, analysts are keeping an eye on the company’s two lead candidates, BXCL501 and BXCL701.BXCL501 is an orally dissolving thin film formulation of a popular sedative called Dexmedetomidine in late-stage development for the treatment of agitation resulting from neuropsychiatric disorders like schizophrenia and bipolar disorder. Meanwhile, BXCL701 is being developed for the treatment of a rare form of prostate cancer and pancreatic cancer in combination with other immuno-oncology agents.On Dec. 7, BioXcel announced that it was awarded a grant by the U.S. Department of Defense to evaluate BXCL501 in patients suffering from post-traumatic stress disorder related to alcohol and substance abuse disorder. This will be the first time that BioXcel is investigating BXCL501 as a potential chronic treatment. (See BTAI stock analysis on TipRanks)Weighing in on this recent update, H.C. Wainwright’s Ram Selvaraju stated, “Dex [Dexmedetomidine] is a full agonist with higher CNS [Central Nervous System] penetration and higher intrinsic activity at the receptor compared to the other alpha-2 receptor agonists, including clonidine and guanfacine, which are only partial agonists. BXCL501 could therefore be a valuable therapeutic option to reduce the hypersympathetic response in patients with PTSD and may have the potential to become a front-line chronic treatment option for PTSD patients.”BXCL501 has been granted fast track designation by the FDA for the acute treatment of agitation in patients with schizophrenia, bipolar disorders and dementia. Following favorable results from the Phase 3 Serenity trials, the company completed a successful pre-NDA (New Drug Application) meeting with the FDA for BXCL501 for the acute treatment of agitation in patients with schizophrenia and bipolar disorders. What’s more, the FDA agreed to a rolling review of the NDA, with the company already submitting part of the NDA. BTAI plans to submit the complete application in 1Q21.Selvaraju believes that BXCL501 could be approved in the U.S. by the end of 2021 or early 2022, assuming an on-time NDA submission. The 5-star analyst drew investors’ attention to the fact that BXCL501 is also being developed to treat acute delirium in hospitalized patients, including COVID-19 patients. Given multiple additional applications for BXCL501, Selvaraju sees a rich pipeline in a single drug candidate, and hence, reiterated a Buy rating with a price target of $175 (upside potential of 306%).Currently, the Street's average price target of $115 hangs below Selvaraju’s estimate but still indicates an attractive upside potential of about 167% in the months ahead. Shares have already risen by a whopping 195% year-to-date. Overall, BioXcel scores a Strong Buy analyst consensus based on 3 unanimous Buys. TG Therapeutics (TGTX)TG Therapeutics is a biopharma company focused on the development of novel treatments for B-cell malignancies and autoimmune diseases. TGTX shares have exploded over 280% so far this year in reaction to many favorable pipeline updates.Currently, the company’s two investigational compounds, ublituximab and umbralisib (the combination of which is referred to as U2) are in Phase 3 clinical development for patients suffering from hematologic malignancies, with ublituximab also in Phase 3 clinical development for multiple sclerosis.Shares spiked 41% on Dec. 10 as the company announced positive results from its Ultimate I and II Phase 3 studies evaluating Ublituximab monotherapy for multiple sclerosis treatment. TG Therapeutics disclosed that both studies met their primary endpoints, with ublituximab demonstrating a statistically significant reduction in annualized relapse rate over a 96-week period. The company stated that further analyses of the Ultimate I and II studies, including safety and secondary endpoints, will be conducted and detailed data will be presented at an upcoming medical congress in the first half of 2021. Additionally, it expects data from these studies to support a Biologics License Application (BLA) submission for ublituximab in multiple sclerosis, targeted in mid-year 2021.The favorable update prompted H.C. Wainwright analyst Edward White to significantly raise his price target to $61 from $38. The five-star analyst reiterated a Buy rating on TG Therapeutics as he sees an increased probability of success for ublituximab in multiple sclerosis.In a research note to investors, White stated, “That the trials are being conducted under an SPA [Special Protocol Agreement] gives us more confidence that the BLA will be successful. We do not expect any issues regarding CMC as the company is already submitting that section to the FDA with the submission for CLL. Importantly, TG plans to strategically price ublituximab to enhance patient access.”“TG is currently in the early stages of talking with payors. We continue to expect ublituximab to take market share due to its more convenient infusion time. For ublituximab in MS, we estimate sales of $36M in 2022 and $601M in 2028,” White added. (See TGTX stock analysis on TipRanks)The Street mirrors White’s optimism, with a Strong Buy analyst consensus backed by 5 unanimous Buys. Given the meteoric rise in the stock, the price target of $54.20 implies an upside potential of 28.2% over the coming year.ConclusionClearly, the Street’s outlook on BioXcel and TG Therapeutics is very bullish based on optimism surrounding their lead candidates. However, the triple-digit upside potential in BioXcel stock makes it a more compelling pick than TG Therapeutics. A word of caution for investors would be to consider all risks associated with investing in emerging biotech stocks, including the failure of obtaining regulatory approvals for promising drugs, funding requirements and competition from pharma giants. To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment
After a recent spike to the upside over the past seven days, both gold and silver have turned negative again and could be headed back to their recent low points reached early in the day on Monday, November 30th.
Almost half of all Americans who have yet to retire are anxious that they won’t have enough savings to live comfortably in retirement, and that fear is most common among “uncertain strugglers,” one of five types of retirement savers identified in a new research paper.
Biotech stocks advanced for a third straight week, defying the broader market weakness. The space got solid support from positive stock reactions to presentations made at hematology and breast cancer conferences.Positive vaccine news continued to flow. Pfizer Inc. (NYSE: PFE) and BioNTech SE - ADR (NASDAQ: BNTX) received the first regulatory nod for their mRNA vaccine, BNT162b2, in the U.K. On Friday, the U.S. followed suit and granted emergency use authorization for the investigational vaccine.Four IPOs from biopharma and medical device makers garnered combined gross proceeds of $1 billion.Here are the events to watch for in the coming week:Conferences: 13th International Conference on Cachexia, Sarcopenia and Wasting Disease, or ICCSWD (virtual event): Dec. 11-13 Revolutionizing Atopic Dermatitis, or RAD, Virtual Conference: Dec. 13-14 19th International Symposium on Pediatric Neuro-Oncology, or ISPNO: Dec. 13-16PDUFA Dates The U.S. Food and Drug Administration is scheduled to rule on MacroGenics Inc's (NASDAQ: MGNX) biologics license application for margetuximab, which is being evaluated in combination with chemotherapy for treating patients with metastatic HER2-positive breast cancer. The PDUFA goal date is Dec. 18.MacroGenics has partnered with Zai Lab Ltd - ADR (NASDAQ: ZLAB) in China, Hong Kong, Macau and Taiwan for the investigational treatment of breast cancer.The regulator will also decide on Amgen, Inc.'s (NASDAQ: AMGN) BLA for ABP 798, a candidate to compete against Roche Holdings AG's Basel ADR Common Stock (OTC: RHHBY) Rituxan. The decision date is Dec. 19.Adcom Review The FDA's Cardiovascular and Renal Drugs Advisory Committee is scheduled to discuss Novartis AG's (NYSE: NVS) supplemental new drug application for Entresto (sacubitril and valsartan) tablets, for the proposed indication of heart failure with preserved ejection fraction.Moderna (NASDAQ: MRNA) will face the FDA's Center for Biologics Evaluation and Research's Vaccines and Related Biological Products Advisory Committee on Dec. 17 regarding the EUA application it has filed for its coronavirus vaccine candidate mRNA-1273. This is the same committee that gave the go-ahead for the vaccine from Pfizer and BioNTech last week.View more earnings on IBBRelated Link: Moderna Says U.S. Has Committed To Another 100M Doses of COVID-19 Vaccine Clinical Readouts/Presentations: Stealth BioTherapeutics Corp (NASDAQ: MITO) will present at the ICCSWD, results of the MMPOWER-3 Phase 3 study of elamipretide in individuals with mtDNA replisome disorders. (Sunday, 10:30 a.m. -11:40 a.m.)Cellectar Biosciences Inc (NASDAQ: CLRB) is scheduled to present at the ISPNO, Phase 1 data on CLR 131 in solid tumors.Arvinas Inc (NASDAQ: ARVN) on Monday will provide clinical program updates for its Protac protein degraders ARV-471 and ARV-110. The presentation will include updates from the Phase 1 dose escalation studies of ARV-471 in patients with locally advanced or metastatic ER positive/HER2 negative breast cancer and ARV-110 in men with metastatic castrate-resistant prostate cancer.Arena Pharmaceuticals, Inc. (NASDAQ: ARNA) is scheduled to present at the RAD 2020 virtual conference data from the Phase 2b ADVISE trial of etrasimod in participants with moderate-to-severe atopic dermatitis. The presentation is fixed for Monday between 8:50 a.m. and 8:57 a.m.Tcr2 Therapeutics Inc (NASDAQ: TCRR) will release on Monday, ahead of the market open, interim data from the Phase 1 portion of the TC-210 Phase 1/2 clinical trial for patients with mesothelin-expressing solid tumors.Gossamer Bio Inc (NASDAQ: GOSS) will release initial results from the ongoing two-week Phase 1b clinical trial of GB002, its inhaled PDGFR inhibitor, for the treatment of pulmonary arterial hypertension. The release is scheduled for Tuesday, 11 a.m.Earnings Champions Oncology Inc (NASDAQ: CSBR) (Monday, after the close) Centogene NV (NASDAQ: CNTG) (Wednesday, before the market open) Applied DNA Sciences Inc (NASDAQ: APDN) (Thursday, after the close)IPOs San Diego, California-based BioAtla, Inc., a clinical-stage biopharma developing highly specific and selective antibody-based therapeutics for the treatment of solid tumor cancer, is planning to offer 9.4 million shares in an initial public offering at an estimated price range of $15-$17. The company has applied for listing its shares on the Nasdaq under the ticker symbol BCAB.Qilian International Holding Group Limited, a pharmaceutical and chemical company based in China, has filed to offer 5 million ordinary shares in an IPO, which is expected to be priced between $4 and $7 per share. The company has received approval from the Nasdaq for listing its shares on the exchange under the ticker symbol QLI.IPO Quiet Period Expiry Olema Pharmaceuticals Inc (NASDAQ: OLMA) Maravai Lifesciences Holdings Inc (NASDAQ: MRVI) Sotera Health Co (NASDAQ: SHC)Related Link: Attention Biotech Investors: Mark Your Calendar For December PDUFA Dates See more from Benzinga * Click here for options trades from Benzinga * The Daily Biotech Pulse: Pfizer-BioNTech Receive FDA Panel Backing, Sanofi-GSK Disclose Delay In Vaccine Program, 4 Biotechs To Debut On Wall Street * The Daily Biotech Pulse: Key Vaccine Adcom Review For Pfizer-BioNTech, Puma, Immutep, G1 Rally On Breast Cancer Conference Presentations(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Chinese companies that don’t adhere to U.S. audit and accounting standards may soon be kicked off U.S. exchanges. Institutional investors have several options, but individual investors could be hurt.
(Bloomberg) -- AstraZeneca Plc, one of the drugmakers leading the fight against Covid-19, highlighted where its growth will come from after the pandemic with a $39 billion deal for rare-disease specialist Alexion Pharmaceuticals Inc.The proposed cash-and-stock acquisition will add treatments for uncommon blood and immunological disorders to the portfolio of Cambridge, U.K.-based AstraZeneca, which had spent years paring away older and less profitable products to focus on cancer.While the pandemic smothered economies and AstraZeneca entered a relatively low-return project to develop a Covid-19 vaccine with the University of Oxford, Chief Executive Officer Pascal Soriot kept his eyes downfield. After months of patients avoiding hospitals and clinics for fear of viral exposure, immunizations are coming online that promise to return society, and the drug industry, to some semblance of normal.The purchase is “an important step in the history of the company,” Soriot said on a call with reporters. “It’s a tremendous opportunity for us to accelerate our development of immunological” therapies.High-priced medicines for rare diseases can generate billions in sales from relatively few patients. Snapping up drugmakers that focus on them has been a popular way for larger pharmaceutical companies to stimulate sales growth in recent years.The offer values Alexion at $175 a share, a 45% premium to the closing price on Friday. It’s the largest deal for AstraZeneca since it was founded in a 1999 combination of British and Swedish companies, and would entrench its position among the world’s 10 biggest drugmakers. It’s also the biggest pharmaceutical and biotechnology takeover this year, as well as the fourth-largest transaction globally across all sectors, according to data compiled by Bloomberg.Covid VaccineThe news gives Soriot a chance to focus on something other than the company’s experimental coronavirus vaccine. AstraZeneca has been wrestling with questions surrounding the efficacy of the potential shot and the way the late-stage trials were handled.Before the pandemic, AstraZeneca was one of the hottest pharmaceutical companies, with some 70% growth in value over the past three years as it churned out cancer drugs like Lynparza, Imfinzi and Tagrisso, its biggest seller. It’s divested rights to older brands like Seroquel for schizophrenia while halting costly development programs that looked unlikely to pan out.But a takeover attempt from Pfizer Inc. that Soriot fended off six years ago taught the importance of scale. AstraZeneca made a preliminary approach to Gilead Sciences Inc., Bloomberg reported in June.While those talks went no further, adding Alexion could put the U.K. drugmaker out of an acquirer’s reach. Relatively cash-poor for the past few years, AstraZeneca will also see benefits from gaining Alexion’s lucrative business.‘Bigger Base’That will help AstraZeneca pay its dividend and “gives them a much bigger base from which to invest in R&D,” said Sam Fazeli, a Bloomberg Intelligence analyst. Chief Financial Officer Marc Dunoyer said this would be the last of AstraZeneca’s big deals for a while.The new products will also allow Soriot to indulge more in one of his priorities: the China market, which now accounts for roughly a fifth of the company’s revenue. Alexion doesn’t have a footprint in the country, making it the most important market for expanding that company’s reach, he said.Alexion has specialized in developing drugs that selectively inhibit immune factors to fight diseases that involve the body’s protective system. Soliris, the company’s biggest product with almost $4 billion in 2019 sales, is a monoclonal antibody used to treat rare conditions such as paroxysmal nocturnal hemoglobinuria.Monoclonal antibodies have garnered attention because two such drugs made by Eli Lilly & Co. and Regeneron Pharmaceuticals Inc. have been given emergency authorization in the U.S. for the treatment of Covid. Alexion announced plans in April to conduct late-stage tests of another monoclonal antibody, Ultomiris, in severely ill patients with the disease.Alexion has been pressured in the past to put itself on the block. Activist investor Elliott Management Corp. opposed the company’s deal earlier this year to acquire Portola Pharmaceuticals, saying the transaction didn’t make strategic sense and didn’t fit with Alexion’s focus on rare diseases.Deal FinancingIn the sale to AstraZeneca, holders of each Alexion share will receive $60 in cash and 2.1243 AstraZeneca American depositary shares, the U.K. company said in a press release Saturday. The drugmaker will fund the acquisition with a $17.5 billion financing facility from Morgan Stanley, JPMorgan Chase & Co. and Goldman Sachs Group Inc.Despite the premium, the price is attractive for AstraZeneca, and its agreement with Alexion could draw out other offers, SVB Leerink analyst Geoffrey Porges said in a note. Alexion shareholders could hold out for $200 per share or seek a higher cash portion, he said.“We believe that in the coming days and weeks the debate about this transaction will center on whether this is enough, and whether other bidders might emerge, rather than whether this was too much,” Porges wrote.The current deal includes a fee of $1.2 billion if Alexion agrees to sell itself to another bidder, while AstraZeneca faces a $1.4 billion breakup penalty. The acquisition is expected to close in the third quarter of 2021 and Alexion shareholders would own 15% of the combined companies.Alexion had $5.9 billion in sales for the 12 months ending with the third quarter of 2020, with a 24% growth rate, AstraZeneca said.Rare-Disease HeadquartersThe U.K. company said it intends to establish its headquarters for rare diseases in Boston. There are no plans for a major reduction in employment, Soriot said. The combined companies should have a dozen blockbuster drugs -- those with more than $1 billion in sales -- by 2023, up from nine as of 2019, CFO Dunoyer said on a call.The deal will add to earnings, with annual synergies of about $500 million projected three years after completion, the company said.Evercore Partners International LLP and Centerview Partners UK LLP are AstraZeneca’s lead financial advisers, while Ondra LLP also gave advice. Bank of America Corp. worked with Alexion.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
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