Notable movers of interest -- Bristol-Myers' (BMY) acquisition of Celgene (CELG) makes waves in the healthcare sector
The following are some of today's most notable movers of interest, categorized by market capitalization (large cap over $10 billion and mid cap between $2-10 billion) and ranked by % change (all stocks over 100K average daily volume).
Large Cap Gainers
- CELG (81.91 +22.91%): To be acquired by Bristol-Myers Squibb (BMY) for approx. $74 bln; the cash and stock consideration to be received by co's shareholders is valued at $102.43/share, a premium of approx. +51% to shares' 30-day volume-weighted average; each share will receive one tradeable CVR; co's shareholders are expected to own approx. 31% of the company post-acquisition; co's shares had hit a multi-year low in late December.
- INCY (68.36 +7.55%): Upgraded to Buy from Neutral at Guggenheim; appointed Christiana Stamoulis, a 20-year veteran of the biotechnology industry and former CFO of Unum Therapeutics (UMRX), as EVP and CFO, effective February 11, replacing David Gryska upon his planned retirement.
- TEVA (16.52 +4.23%): Resolved ongoing dispute with Amgen (AMGN) over co's generic cinacalcet HCI product; co has agreed to stop selling its generic until at latest its license date in mid-2021 and to pay Amgen an undisclosed sum; upgraded to Buy from Underperform at BofA/Merrill Lynch, which eyes upside potential from pipeline catalysts.
Large Cap Losers
- BMY (44.78 -13.93%): Acquiring biopharmaceutical peer Celgene (CELG) in a cash and stock transaction that has an equity value of approx. $74 bln, amounting to approx. a +54% premium to Celgene shareholders based on the closing price of Celgene shares yesterday; co notes that the among the portfolio of the combined companies will be nine products representing diverse core areas of medical need with more than $1 bln in annual sales and "significant potential for growth" and sees near-term launch opportunities that represent more than $15 bln in potential revenue, with six expected near-term product launches; expects to realize run-rate cost synergies of approx. $2.5 bln by 2022; combination is expected to be more than +40% accretive to EPS in the first full year following the transaction's close; expects to execute an accelerated share repurchase program of up to approx. $5 bln.
- STM (12.08 -12.08%): Semiconductor stocks pressured, leading the tech sector lower, as Apple (AAPL) suppliers and other chip stocks feel the weight of Apple's lowered first quarter guidance and the fresh visibility it provides on macroeconomic risks, particularly in connection with slowdown in activity in Greater China. (Related: OLED, SWKS, AMD, QRVO...)
- DAL (45.57 -9.02%): Reported December operating performance and pre-announced Q4 results, raising EPS guidance to $1.25-1.30 from $1.10-1.30; noted total unit revenue excluding refinery sales of +3% vs prior guidance for +3.5% and original guidance of +3-5%; reported that "the pace of improvement in late December was more modest than anticipated"; shares reach lowest level since September 2017.
Mid Cap Gainers
- SBS (9.68 +7.08%): At highest levels since April as a number of Brazilian stocks, including peer utilities name Centrais Eletricas Brasileiras (EBR), see continued strength.
- GFI (3.71 +5.7%): Gold stocks trend higher; co's shares reach highest levels since the beginning of August. (Related: EGO, AUY, AU...)
- SBRA (16.73 +4.08%): REIT names outperform. (Related: MPW, BDN, HCP...)
Mid Cap Losers
- BGNE (121.32 -10.82%): Co's strategic collaboration with Celgene (CELG) to develop and commercialize co's BGB-A317 (tislelizumab) for patients with solid tumor cancers in the U.S., Europe, Japan, and the rest of the world outside Asia could be impacted by Celgene's merger with Bristol-Myers Squibb (BMY); included among features of the partnership between co and Celgene, as established in July 2017, were co's acquisition of Celgene's commercial operations in China and Celgene's purchase of an equity stake in co, among various licensing rights and related fees.
- BILI (12.92 -9.56%): Moves lower alongside a number of Chinese tech/Internet peers. (Related: WUBA, GDS, WB, BIDU, TME...)
- XLRN (40.1 -9.05%): Rival oncology names move generally lower upon Bristol-Myers Squibb's (BMY) blockbuster acquisition of Celgene (CELG), which shifts acquisition and pipeline opportunities for other companies in the space. (Related: NKTR, CLVS...)