>>> Achillion Pharma (ACHN) : Color on JNJ partnership -->-7.86%

Achillion Pharma: Color on JNJ partnership
  • Maxim thinks the JNJ partnership is a good deal for both parties. The focus now is on both the value of the NS5A (which they believe is best in class) and the potential upside with ACHN-3422. With JNJ, multiple combinations may now come into play, all with the goal of developing a QD-STR (single-tablet regimen) that would be competitive with Gilead's (GILD - $110.56 - Buy) Harvoni and Sovaldi. They may even see an Achillion PI come into the mix. They believe the probability that Achillion will realize milestones and eventually royalties is quite high—high enough to justify their valuation arguments, which remain unchanged ($19 tgt). Investors should also note that the co now has a cash balance approaching $550-600M.
  • UBS downgraded the stock to Neutral.
  • JMP downgraded the stock to Mkt Perform.
  • ACHN is down ~9% premarket as the JNJ partnership has likely disappointed many who thought ACHN would get acquired.

(BFW) Pfizer Bid for Glaxo Would Draw More Scrutiny vs Astra: Citi

Pfizer Bid for Glaxo Would Draw More Scrutiny vs Astra: Citi
2015-05-20 11:49:17.222 GMT


By Allison Connolly
(Bloomberg) -- U.K. government resistance to a Pfizer bid
for Glaxo would be “materially higher” than it was for Astra
given the much larger U.K. infrastructure, Citi’s Andrew Baum
says in a note.
* Says Glaxo (resumed neutral) seeking to buy minority stakes
in its OTC JV from Novartis and ViiV from PFE is more
credible
* Maintenance of the current div. creates material limitations
on Glaxo’s ability to pursue material M&A: Citi
* NOTE: Earlier, Pfizer Bid for Glaxo Would Unlock Balance
Sheet: Deutsche Bank

For Related News and Information:
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To contact the reporter on this story:
Allison Connolly in London at +44-20-3525-7043 or
aconnolly4@bloomberg.net
To contact the editors responsible for this story:
James Ludden at +44-20-3525-2645 or
jludden@bloomberg.net
Gaurav Panchal

>>> US Early premarket gappers

Early premarket gappers
Gapping up: SRPT +48%, PBY +16.4%, DY +15.3%, CSC +6.2%, FCX +4.8%, YGE +4.3%, UBS +2.9%, ALV +2.8%, ENZN +2.4%, CS +2.2%, YHOO +2.2%, NQ +1.9%, FRO +1.5%, NBG +1.4%, QIHU +1.1%, VOD +1%, RIO +0.9%, BG +0.8%, UTX +0.8%, RIG +0.8%

Gapping down: ETSY -16.6%, ACHN -6.9%, CISG -5.8%, KEYS -5.7%, LOW -5.6%, XEC -4.4%, DL -4.4%, SPLS -3.2%, NCLH -3.1%, SD -1.8%, ADSK -1.8%, STI -1.4%, GFI -1.4%, EPE -1.3%, NDSN -1.3%, SDRL -0.9%, TEDU -0.9%, MGM -0.8%, MNTA -0.7%, VSAT -0.5%

Reuters - Deal talks between Altice and Time Warner Cable are ongoing: source


Altice's acquisition of U.S. cable group Suddenlink has not dampened its interest in buying much larger Time Warner Cable, a source familiar with the matter said.
"Altice is very keen on Time Warner Cable," the person said after Altice's announcement of the $9.1 billion Suddenlink buy from private equity group BC Partners on Wednesday.
Talks between Altice and Time Warner Cable are continuing, the person said, but the European company faces competition for the second-largest cable group in the U.S. from John Malone's Charter Communications.
With a market value of $44.5 billion, TWC would also be big bite for Altice, which has a market value of about $30 billion.
Despite the size of a potential deal, Altice's offer for TWC is expected to be mainly in cash and not largely in shares, the person added.

>>> Emerson discloses 3-month orders growth data; Apr -15% --> ReadX for SU

Emerson discloses 3-month orders growth data; Apr -15%

"Trailing three-month orders decreased 15 percent as monthly orders continue to reflect the drop in oil prices, a global slowdown in capital spending, most notably in energy-related markets, and significant strength in the U.S. dollar, which deducted 7 percentage points through currency translation. In line with the Company's comments on its May 5th conference call, underlying orders were down high single digits reflecting slow market conditions in all segments. Based upon these trends, the Company expects third quarter underlying sales to be slightly negative compared to the prior year, excluding unfavorable currency of approximately 6 percent and an impact from divestitures of approximately 2 percent. Reported sales for the third quarter are expected to decrease up to approximately 10 percent."