Gapping down
In reaction to disappointing earnings/guidance:
- AXDX -9.7%, NSTG -7.3%, NVTR -6.2%, CMC -6.1%, SIBN -5.6%, FOLD -5.1%, AMRN -4.9%, RTRX -4%, WMGI -3.9%, AMAG -3.7%, CSII -3.5%
M&A news:
- LLY -1% (to acquire LOXO for $8 bln)
Other news:
- SYRS -86.5% (outlines strategic priorities and expected milestones; Updated clinical data on SY-1425 in combination with Azacitidine expected in 2H19)
- HCLP -18.7% (provides Q4 operational and financial updates, Board suspends quarterly distribution)
- PCG -16.1% (Reuters report that the company is weighing a possible bankruptcy filing in the wake of the California wildfires)
- SNDX -13.8% (provides 2019 clinical and corporate outlook)
- NHTC -9% (responds to 'speculations and allegations falsely purported' against the Company in a segment that aired on January 5, 2019 on CCTV)
- VYGR -6.1% (provides update on AADC clinical program for Parkinson's disease -- Voyager to increase the size of RESTORE-1 Phase 2 trial and to conduct a similarly-sized RESTORE-2 Phase 3 trial)
- WMGI -3.9% (announces organizational changes)
- AMAG -3.7% (confirms PDUFA extension of Vyleesi)
- GTN -3.4% (to terminate the national advertising sales representation agreements that cover acquired Raycom stations)
- GME -1.4% (modestly pulling back following last week's 24% gain)
- CUE -1.2% (files for $150 mln mixed securities shelf offering )
Analyst comments:
- CRZO -6% (downgraded to Market Perform from Outperform at BMO Capital Markets)
- HAFC -2.2% (downgraded to Mkt Perform from Outperform at Raymond James)
- SNAP -0.5% (downgraded to Hold at Pivotal Research Group)
Gapping up
In reaction to strong earnings/guidance:
- EXAS +12.7%, ADMS +7.3%, TRXC +5.9%, DXCM +4.1%, NVTA +2.3%, ABMD +1.1%
M&A news:
- AXSM +154.8% (after announcing that AXS-05 met the prespecified primary endpoint and significantly improved symptoms of depression in the ASCEND Phase 2 trial in major depressive disorder)
- LXFT +82.5% (to be acquired by DXC Technology (DXC) for $59/share in cash)
- LOXO +65.3% (to be acquired by Eli Lilly (LLY) for $235/share in cash)
Other news:
- SAGE +34.9% (SAGE-217 meets primary and secondary endpoints in phase 3 clinical trial in postpartum depression)
- INSM +26.9% (provides update on ARIKAYCE U.S. launch and outlines strategic priorities for 2019)
- NEPT +23.5% (received its license to process cannabis from Health Canada)
- AKBA +6.8% (discloses that the IMDC held another meeting in December and recommended that the global Phase 3 PRO2TECT and INNO2VATE programs for vadadustat continue and did not recommend any modifications to the programs)
- LQDA +3.8% (reports positive interim safety data from its open-label, multicenter Phase 3 clinical trial (INSPIRE) evaluating LIQ861)
- GE +3.3% (reports of Apollo interest in jet lease unit)
- SSNC +2% (files prospectus supplement covering the offer and sale from time to time of up to 792,968 shares held by selling shareholder Impala )
- TSLA +1.5% (will be breaking ground on Shanghai gigafactory today; aiming to finish initial construction this summer, start Model 3 production end of year & reach high volume production next year)
- MU +1.1% (continued strength)
Analyst comments:
- EPZM +4% (upgraded to Outperform from Mkt Perform at Leerink Partners)
- FIVN +2% (upgraded to Overweight from Equal-Weight at Morgan Stanley)
- CRM +1.9% (upgraded to Buy at Pivotal Research Group)
- DG +1.9% (upgraded to Overweight from Sector Weight at KeyBanc Capital Mkts)
- AMZN +1.8% (initiated with a Buy at Pivotal Research Group; tgt $1920)
- ECA +1.1% (upgraded to Outperform from Market Perform at BMO Capital Markets)
- GM +1% (upgraded to Outperform from Market Perform at BMO Capital Markets)
Allergan announces 'positive' 3-month topline results from the second pivotal clinical trial of Bimatoprost SR for the reduction of IOP in patients with open-angle glaucoma or ocular hypertension
In this Phase 3 clinical study of 528 subjects with open-angle glaucoma or ocular hypertension, Bimatoprost SR reduced IOP by approximately 30 percent over the 12-week primary efficacy period, meeting the predefined criteria for non-inferiority to the study comparator, timolol. Results of this second Phase 3 study with an identical design as the first study, showed that the magnitude of IOP-lowering efficacy with Bimatoprost SR is similar to that observed with topical prostaglandin analogues. The study also showed the potential for the vast majority of patients to remain treatment free for at least 1 year after the last implant was inserted. Overall, Bimatoprost SR was well tolerated in the majority of patients. The 20-month masked study is ongoing, and additional data will become available as patients complete the study.
FT : Hedge fund Northlander generates windfall return on carbon bet
London-based hedge fund Northlander Commodity Advisors returned 52.7 per cent to investors in 2018, excluding commission and fees, as its major bet on rising European carbon prices paid off.
Ulf Ek, founder and chief investment officer of the $484m fund, told his investors in an end of year note seen by the Financial Times that Northlander had benefited from “an unusually high conviction on the carbon trade” that saw carbon allowances under the EU Emissions Trading System increase by 230 per cent in the year.
The Financial Times reported in September that Northlander was one of an elite group of specialist traders cashing in on the carbon rally, which followed changes to regulations designed to tighten the supply of allowances and incentivise the switch away from fuels like coal towards gas and renewables.
Mr Ek said in his note to investors that he saw additional opportunities in carbon in the future.
“Rarely, if ever, have we seen an opportunity like the EU ETS [Emissions Trading System] where a regulatory change results in a dramatic repricing of a commodity and the market simply didn’t spot the change for 6 months, giving us time to establish a leveraged position using options to reduce drawdown risk,” Mr Ek said.
“The current market price of around €25 is still far from a fundamental equilibrium price, which we see around €35-40. We can also picture a scenario where prices go even higher once coal to gas fuel switching starts taking place.”
The performance of Northlander contrast with other traditional commodity funds, which struggled due to oil’s late-year collapse in 2018, as prices reached a four-year high of $86 a barrel in October before dropping by roughly a third in the fourth quarter.
Andurand Capital Management, one of the biggest specialist oil hedge funds, was left nursing bruising double-digit losses in late December according to numbers provided to investors and published by HSBC, while the Dorset Energy fund lost 38 per cent last year to December 28, including a 23 per cent drop last month.
Mr Ek at Northlander said other commodities aside from carbon had proven challenging in 2018, including coal and oil in which his fund had smaller investments.
Investor appetite for commodities is also under question given the recent volatility. Despite Northlander’s bumper returns its assets under management remained relatively flat at $484m, with Mr Ek pointing to “profit-taking, particularly from our fund of fund investors”.
Mr Ek said in the note that he is looking for additional investors, believing “we can comfortably manage up to $1bn in the space we are currently trading”.
Early premarket gappersGapping up:
- AXSM +79.5%, LOXO +64.4%, NEPT +22.8%, AXON +14.8%, EXAS +11.2%, BPMC +6.8%, GE +4.7%, DAL +4.6%, EPZM +4%, X +3.8%, MU +2.4%, XNET +2.3%, PEP +2.1%, MAT +2%, FEYE +1.8%, ARRY +1.7%, TSLA +1.6%, FIVN +1.5%, STM +1.3%, CCL +1.2%, PHM +1.1%, CUK +1%, AMZN +0.8%
Gapping down:
- PCG -19.1%, AMRN -6.9%, ARCW -6%, CMC -3.2%, LLY -2.9%, CSIQ -2.3%, URBN -1.8%, NVS -1.7%, GME -1.6%, HSBC -1.6%, RDY -1.6%, BUD -1.6%, CSX -1.4%, AMAT -1.4%, ADSK -1.3%, MO -1.3%, ABB -1.2%, TTM -1.1%, RH -1.1%, SNY -1%, RDS.A -0.9%, BP -0.9%, AZN -0.8%, FB -0.7%
BT ramps up takeover defence with help from Goldman Sachs, Robey Warshaw - report
06 JAN 2019
BT Group [LON:BT.A] has been working with advisers from Goldman Sachs and Robey Warshaw to help fend off a possible takeover attempt by Deutsche Telekom [ETR:DTE], The Mail on Sunday reported. City sources cited in the report said BT started working with Goldman Sachs, Simon Warshaw and Simon Robey at the end of last year in the hope of bolstering its takeover defences.
A three-year standstill agreement which prevents Deutsche Telekom from increasing its stake in BT to more than 15% will expire on 29 January, which could leave the British telecoms company vulnerable to takeover, the report said. Deutsche Telekom is BT’s biggest shareholder, having built up a 12% stake by February 2015, the item noted.
BT declined to discuss any involvement with Goldman Sachs and Robey Warshaw, which is well known for advising on takeover defences against overseas buyers, the report said.
BT may also be sounding out the advisers regarding potential options for a break-up of the group prior to the installation of new Chief Executive Philip Jansen on 1 February, the report said.
Sources cited in the article said JPMorgan and Perella Weinberg Partners are also likely to have been approached by BT regarding defence strategies and strategic options as they previously advised the company on its acquisition of EE.
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