>>> US Gapping Down

Gapping down
In reaction to disappointing earnings/guidance: XXIA -5%, FMC -1.8%.

Select EU financial related names showing weakness:NBG -3%, IRE -2.4%, RBS -1.4%, ING -1.1%, DB -0.8%.

Other news: MTOR -15.4% (reaches agreement with Eaton (ETN) to Settle Antitrust Lawsuit), BIOA -5% (secures CAD20 mln loan for Sarnia plant, light volume), KNDI -4.7% (files for $300 mln mixed securities shelf offering).

Analyst comments: ENBL -2.4% (initiated with a Market Perform at Wells Fargo), NGHC -2% (downgraded to Neutral from Buy at Guggenheim), NVDA -2% (downgraded to Underperform from Sector Perform at Pacific Crest), PER -1.5% (downgraded to Mkt Perform from Outperform at Raymond James), TDC -1.3% (downgraded to Mkt Perform from Mkt Outperform at JMP Securities), SPWR-1.2% (downgraded to Hold from Buy at Brean Capital), COH -1.2% (downgraded to Underperform from Neutral at Wedbush)

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance: NEO +6.9%, ABBV +1.8%.

M&A news: TEG +13.8% (Wisconsin Energy (WEC) to acquire TEG for $9.1 bln in cash; total consideration is valued at $71.47 per Integrys share), CENT +11.7% (Harbinger Group (HRG) offers to acquire Central Garden & Pet Company for $10.00 per share in cash), PLXT +12% (to be acquired by Avago Technologies (AVGO) for $6.50 in cash), MCRS +2.2% (acquired by ORCL for $68/share in cash.

Select metals/mining stocks trading higher: BHP +1.9%, CLF +1.5%, RIO +1.1%, MT +0.9%.

Other news: COCO +33.3% (U.S. Department of Education agree in principle on transition plan; co will immediately receive $16 mln in federal student aid funds earned through enrollment), TOPS +9.6% (announces delivery of first newbuild vessel), RMTI +7.8% (receives FDA approval for Calcitriol), AZC +7.4% (and Hudbay (HBM) agree to friendly acquisition), ASTI +6.5% (reaches significant milestone for its proposed joint venture with the city of Suqian of Jiangsu Province), LULU +5.6% (founder has hired Goldman Sachs (GS) to shake up Board, according to reports), RBY +5.3% (infill drilling program continues to increase confidence in the f2 deposit at the phoenix gold project), TGD +5.1% (announces four new independent nominees for board), TC +4.9% (announces pricing terms for exchange offer of common stock for its 6.50% tangible equity units), SPPI +4.3% (still checking), NSPH +2.2% (signs molecular diagnostic supply agreement with HealthTrust), GNCA +2% (announces positive Top-Line Phase 1 results for novel universal pneumococcus vaccine candidate GEN-004), PIR +2% (strength following last week's decline), NAT +1.8% (Co's spin-off Nordic American Offshore (NAO) orders two more vessels), CBST +1.6% (SIVEXTRO approved in U.S. to treat serious skin infections—including those caused by MRSA), MU +1.4% (trading higher ahead of earnings), MY +1.1% (higher on strong China PMI data), INO +1% (initiates cervical cancer clinical trial), CBI +0.8% (awarded five-year contract by Exelon Generation valued at $800 mln for plant services).

Analyst comments: SQNM +5.8% (upgraded to Outperform from Mkt Perform at William Blair), BURL +4.4% (upgraded to Buy from Neutral at Goldman), WHX +3.6% (upgraded to Outperform from Mkt Perform at Raymond James), DISH +1.3% (upgraded to Buy from Neutral at Citigroup), EXPR +1% (upgraded to Buy from Neutral at Janney), BBRY +0.9% (upgraded to Equal Weight from Underweight at Evercore).

>>> Valeant Pharma Posts Answers To Refute Allergan's (AGN) Misleading Statement

Valeant Pharma Posts Answers To Refute Allergan's (AGN) Misleading Statements

US IMS data will cover less than 30% of Valeant's business and, for that portion of Valeant's business IMS covers, the IMS data will not properly collect sales through a numbers of channels (e.g., specialty pharmacy, physician dispensed sales, corporate accounts, and alternative fulfillment).

In Q1 2014, quarter over comparable quarter in Q1 2013 o 13 of the top 15 Valeant products are growing : Wellb utrin XL, Renu, Solodyn, Xenazine, Ocuvite, Preservision, Lotemax Gel, Elidel, BioTrue Solution, Artelac, CeraVe, Syprine, and Acanya o 9 of the 15 are growing by volume : Renu, Xenazine, Ocuvite, Preservision, Lotemax Gel, Elidel, BioTrue Solutions , Artelac , CeraVe o Two products that are not growing are Zovirax (impacted by generic competition) and Boston Solution

See attached fot full dertails

World 3D printing technology expo opens in China

--> could move DDD & SSYS

World 3D printing technology expo opens in China

3D printing technology has been around for nearly three decades, but industry professionals estimate that its worldwide market accounts for just 20 billion yuan, less than what a global Internet company such as Google makes in a year.

Industry professionals from 11 countries are in Qingdao now to discuss 3D printing and what’s hindering its market growth.

3D printing technology has been around for nearly three decades, but industry professionals estimate that its worldwide market accounts for just 20 billion yuan.

With no concrete and no steel, one Qingdao company is making a bold move: using 3D technology to print an actual house. It will take six months for the world’s largest 3D printer to complete the project.

Even for smaller items, such as toys, it usually takes hours or days for the objects to emerge from a 3D printer, and the cost of material is usually calculated per gram.

There is no doubt that the 3D technology can print a variety of items but if some can be produced much cheaper and more quickly in a traditional factory, why bother use 3D printing?

3D printing technology has been around for nearly three decades, but industry professionals estimate that its worldwide market accounts for just 20 billion yuan.

"Although 3D technology can produce anything traditional manufacturing makes, many products we produce are not functional. Traditional manufacturing’s economy of scale is clearly not the strength of 3D printing," Luo Jun, Secretary General of China 3D Printing Technology Industry Alliance, said.

While most 3D printing businesses in China are profiting from making and selling 3D printers, some are already spotting the real strength of 3D printing technology.

"Nowadays young people like individualized things, so we think this is going to provide us with huge business opportunities," Cheng Yongli, Manager of Hechuang Manufacturing, said.

"What we need to do is to make things traditional manufacturing can’t make or doesn’t make economically," Zhang Liuyang, Planning Manager of Magic said.

Industry insiders say that determining exactly how 3D printing technology can be applied and turned into profit is key to expanding the market. They estimate that the Chinese market will reach 4 billion yuan by the end of 2014.

>>> AbbVie raises FY14 EPS guidance

AbbVie raises FY14 EPS guidance
Co issues in-line guidance for FY14 (Dec), sees EPS of $3.06-3.16 vs. $3.11 Capital IQ Consensus Estimate.
  • AbbVie's 2014 outlook continues to exclude any potential revenue from the expected 2014 U.S. launch of its hepatitis C (HCV) therapy which has been granted accelerated review by the U.S. Food and Drug Administration (FDA).
  • The co is raising its outlook, reflecting strong underlying business performance year to date and the expected continued positive trends over the remainder of the year, including the second quarter.

>>> Shire plc updates progress in presentation; sees product sales targets of $6

Shire plc updates progress in presentation; sees product sales targets of $6.5 bln by 2016 and $10 bln by 2020

  • Shire is delivering a presentation today setting out the continued progress in executing its strategy, which centers on delivering innovative therapies for significant unmet need in Rare Diseases and other high-value specialty indications.
  • The Company is providing new, long-term, financial targets which highlight the significant potential for shareholder value creation.
  • From 2013 to 2020 Shire is targeting sustainable product sales growth leading to annual product sales (excluding the impact of any additional M&A, licensing and certain recent acquisitions) of US$10 bln by 2020, comprising US$7 bln from in-line product sales and US$3 bln in sales from existing pipeline products. In the medium term Shire is also targeting annual product sales of US$6.5 bln by 2016.
  • The Board believes that Shire's focused growth strategy and efficient cost base will continue to deliver significant shareholder value and patient benefits.day's presentation includes the following additional information in relation to Shire's risk adjusted financial targets and non-risk adjusted sales forecasts for selected key pipeline products:
    • Product sales targets of $6.5 bln by 2016 and $10 bln by 2020
    • Double-digit compound annual product sales growth from the current portfolio through 2020 (excluding the impact of M&A, in-licensing and pipeline development from certain recent transactions).
    • Rare Diseases business unit sales of over US$3 bln by 2020; Neuroscience business unit sales of over US$3 bln by 2020.
    • GI business unit sales of over US$1.3 bln by 2020; Lifitegrast product sales in 2020 of in excess of US$1 bln.
    • SHP465 product sales in 2020 of approximately US$500 mln (unrisked[6]); SHP607 (PREMIPLEX®) product sales in 2020 of in excess of US$500 mln (unrisked[6]); LDX product sales (as a treatment of Binge Eating Disorder) in 2020 of approximately US$300 mln (unrisked[6])
    • Pipeline intrathecal programs product sales in 2020 of approximately $400 mln
    • Peak sales potential (unrisked) for LUM001 and LUM002 of in excess of US$3 bln in total; and Peak sales potential (unrisked) for the innovative pipeline of over $7 bln.

>>> US Early premarket gappers

Early premarket gappers
Gapping up: PLXT +8.2%, ASTI +6.5%, LULU +5.2%, AZC +4.7%, CBST +4.5%, SPPI +3.2%, MCRS +2.5%, BHP +2%, CLF +1.8%, RIO +1.5%, XRX +1.5%, MY +1.1%, INO +1%, MT +0.9%, MU +0.8%, GE +0.3%

Gapping down: XXIA -5.6%, ETRM -5.5%, KNDI -4.7%, ZQK -3.5%, NBG -2.8%, IRE -2.4%, ASML -2.4%, NVDA -1.7%, AMD -1.7%, COH -1.6%, BUD -1.2%, ING -0.9%, EGO -0.8%, DB -0.6%

(BN) *SHIRE DECLINES TO COMMENT ON WHETHER OTHER COS HAVE APPROACHED

 BN 06/23 11:29 *SHIRE CEO SAYS HIS ONLY DEFENSE IS TRACK RECORD, STRATEGIC PLAN
 BN 06/23 11:28 *SHIRE GROWTH SHOULD COMMAND PREMIUM OF `SOME SIGNIFICANCE'
 BN 06/23 11:27 *SHIRE HOLDERS SHOULD BE COMPENSATED FOR GIVING THAT UP
 BN 06/23 11:27 *SHIRE HAS STRONG INDEPENDENT FUTURE, ORNSKOV SAYS
 BN 06/23 11:27 *SHIRE CEO ORNSKOV COMMENTS IN INTERVIEW IN LONDON
 BN 06/23 11:01 *SHIRE GROWTH STRATEGY TO DELIVER SIGNIFICANT SHRHOLDER VALUE
*SHIRE DECLINES TO COMMENT ON WHETHER OTHER COS HAVE APPROACHED
2014-06-23 11:30:22.70 GMT

--PHIL SERAFINO

-0- Jun/23/2014 11:30 GMT

>>> FMC Corp guides Q2 EPS below consensus; lowers FY14 guidance

FMC Corp guides Q2 EPS below consensus; lowers FY14 guidance; provides segment guidance (weather was a factor)

Co issues downside guidance for Q2 (Jun), sees EPS of $0.95-1.05 vs. $1.11 Capital IQ Consensus Estimate.

Co issues downside guidance for FY14 (Dec), lowers EPS to $4.10-4.30 from $4.35-4.55 vs. $4.44 Capital IQ Consensus.
  • The co previously reported that the prolonged cold weather in North America had delayed first quarter sales. When providing previous guidance, the co expected these weather conditions to abate and for a recovery of these sales to occur in the remaining quarters of 2014. However, the weather conditions persisted later into Q2 than expected leading to reduced application of pre-emergent products. Although sales of Authority brand soybean pre-emergent herbicides increased as expected, the increase was not enough to offset lower than expected sales of other products, particularly Capture LFR corn insecticide.
  • In addition, the co reported that drought conditions in the Sao Paulo state of Brazil were delaying sales into the sugarcane segment. The co did not expect this drought to continue through Q2. These extended poor growing conditions have resulted in growers reducing their use of crop protection products. Furthermore, growers have significantly reduced the rate at which they are replanting, which has reduced the use of herbicides and insecticides in the sugarcane segment. The co does not expect conditions to improve in sugarcane during the remainder of 2014.
  • As a result of these factors, the co expects second quarter segment earnings for Agricultural Solutions to be up mid-single digits percent compared to the second quarter of 2013.
  • For the full year 2014, revenues and operating earnings for the Agricultural Solutions segment are expected to increase by a mid-single digits percentage over 2013.
  • The co reaffirms its previous guidance for the Health and Nutrition and the Minerals segments for both the second quarter and the full year 2014. Second quarter segment earnings for Health and Nutrition are expected to be up low-teens percent primarily due to higher volumes driven by end market demand. Full-year segment revenue is expected to be up mid- to high-teens percent driven by higher volumes in texture and stability solutions, natural colors and binder product lines and contributions from the omega-3 product line. Full-year segment earnings are expected to be up mid-teens percent due to strong demand for functional ingredients and benefits from new omega-3 sales.
  • Second quarter segment earnings for the Minerals segment are expected to be up low-teens percent resulting from operating improvements in both the Soda Ash and Lithium businesses. Full-year segment revenue is expected to be up mid- to high-single digits percent driven primarily by increased volumes in lithium and soda ash and short- and long-term contracted price increases in soda ash. Full-year segment earnings are expected to be up high-teens percent, reflecting lithium margin improvements and more favorable contractual soda ash pricing versus 2013.

>>> Integrys Energy Group To be acquired by Wisconsin Energy for equivalent of $


Integrys Energy Group To be acquired by Wisconsin Energy for equivalent of $71.47/shr in all-stock deal valued around $9.1B

Wisconsin Energy Corp. (NYSE: WEC) and Integrys Energy Group Inc. (NYSE: TEG) today announced that they have entered into a definitive agreement under which Wisconsin Energy will acquire Integrys in a transaction valued at $9.1 billion. Upon completion of the transaction, the combined company will be named WEC Energy Group, Inc. 

The combination of Wisconsin Energy and Integrys brings together two strong and well-regarded utility operators with complementary geographic footprints to create a larger, more diverse Midwest electric and natural gas delivery company with the operational expertise, scale and financial resources to meet the region's future energy needs. 

The combined entity is projected to have a regulated rate base of $16.8 billion in 2015, serve more than 4.3 million total gas and electric customers across Wisconsin, Illinois, Michigan and Minnesota, and operate nearly 71,000 miles of electric distribution lines and more than 44,000 miles of gas transmission and distribution lines. The combination brings together Wisconsin Energy's top-performing electric and gas utility We Energies and Integrys' strong electric and gas utilities Wisconsin Public Service, Peoples Gas, North Shore Gas, Minnesota Energy Resources and Michigan Gas Utilities. 

In addition to expanding and diversifying Wisconsin Energy's regulated holdings into other large Midwestern states, the combined company will hold a 60 percent stake in American Transmission Co. 

Gale Klappa, chairman and CEO of Wisconsin Energy said, "We believe this combination provides a unique opportunity to create the premier regulated utility system in the Midwest, with superior service and competitive pricing for years to come. The operational and financial benefits to all of our stakeholders from the customers and communities we serve, to the people we employ, to the shareholders who count on us to create value are clear, achievable and compelling." 

He continued, "We have been consistent in our commitment to undertake acquisitions or combinations only if we believe they will be accretive to earnings per share in the first calendar year after closing, be largely credit neutral and produce a growth rate at least equal to Wisconsin Energy's stand-alone growth rate. This combination meets or exceeds those criteria on all counts." 

Under the terms of the transaction, which has been unanimously approved by the boards of directors of both companies, Integrys shareholders will receive common stock at a fixed exchange ratio of 1.128 Wisconsin Energy shares plus $18.58 in cash per Integrys share. 

Total consideration is valued at $71.47 per Integrys share, with a consideration mix of 74 percent stock and 26 percent cash. This represents a 17.3 percent premium to Integrys' closing price on June 20, 2014 and a 22.8 percent premium to the volume-weighted average share price over the past 30 trading days ending June 20, 2014. Upon closing of the transaction, Integrys shareholders will own approximately 28 percent of the combined company. 

The proposed dividend policy of the combined company will be designed to initially keep Integrys' shareholders neutral after taking into consideration both the stock and cash they received. In the period before closing, Wisconsin Energy plans to continue its current dividend policy, which calls for a 7-8 percent annual increase in the dividend. "At closing, we would expect a further dividend increase for the Wisconsin Energy shareholders to reflect the dividend policy of the combined company," Klappa said. "In future years, the projected payout target for the combined company will be 65-70 percent of earnings," he added. The dividend policy of the combined company is expected to be accretive to all shareholders in future years. Also, Integrys announced that it is in the late stages of a competitive process to divest Integrys Energy Services, its non-regulated marketing subsidiary. In January 2014, it also announced an agreement to sell Upper Peninsula Power Company to Balfour Beatty Infrastructure Partners. 

"As part of our ongoing assessment of Integrys' portfolio of businesses, we previously determined it was appropriate to divest Integrys Energy Services' retail electric and natural gas business and began that process earlier this year," said Schrock. "The process is moving forward as we expected and we anticipate completing it soon." Approvals and timing The transaction is subject to approvals from the shareholders of both companies, the Federal Energy Regulatory Commission, Federal Communications Commission, Public Service Commission of Wisconsin, Illinois Commerce Commission, Michigan Public Service Commission and the Minnesota Public Utilities Commission. The transaction also is subject to the notification and clearance and reporting requirements under the Hart-Scott-Rodino Act and other customary closing conditions