>>> Croda is trading higher (+3%) on potential interest from a suitor

- I have flagged the stock on Monday because was trading on strong support level (50dMA)

- Rumor around today that Evonik could be interested by Croda - Evonik is doing a road show today...
- see note attached of HSBC from yesterday, they are pushing teh stock on few points
* Raw material re-inflation an upside risk for Croda…
* … and a negative for richly valued flavours & fragrance
players while customers start to see more demand tailwinds

--> See note attached

(HedgeFundWisdom) HF 13F Filing Reports

HF Consensus New Positions
* Kraft Foods (KRFT)
* Actavis (ACT)
* Micron Technology (MU)
* Precision Castparts (PCP)
* Summit Materials (SUM)

HF Consensus Increased Positions
* Actavis (ACT)
* Delta Air Lines (DAL)
* JD.com (JD)
* Charter Communications (CHTR)
* Micron Technology (MU)

HF Consensus Sold Positions
* Alibaba Group (BABA)
* Shire (SHPG)

HF Consensus Decreased Positions
* HCA (HCA)
* Valeant Pharmaceuticals (VRX)
* eBay (EBAY)
* Dollar General (DG)
* Charter Communications (CHTR)

>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance
: XNET -14%, NTAP -12.6%, (Also - disclosed it committed to a realignment designed to drive efficiency, eliminate cost and redirect resources; expects to reduce headcount by ~500 employees RXN -11.5%, BRS -5.9%, SMRT -5.8%, SCVL -4.9%, DLTR -4.3%, AAP -4.1%, SNPS -3.5%, BONT -3.2%, MNRO -2.8%, BKE -2.6%,OTEX -2.4%, ( announces Mark Barrenechea, President and CEO resumed full involvement in day-to-day operations; sees Q4 EPS and revs below consensus)

Other news: LL -17.4% (CEO resigns), BRKR -10% (CFO Charles Wagner has submitted his resignation), FATE -8% (prices 6,000,000 shares of its common stock at $5.00 per share), OXGN -5.8% (filed for $75 mln mixed securities shelf offering), DRNA -5.3% (prices 2,750,000 shares of its common stock at $17.75 per share), AETI -5.2% filed for $25 mln offering of common stock, warrants, and units), AGEN -4.2% (intends to offer shares of its common stock in an underwritten public offering ), OCUL -2% (filed for $125 mln common stock offering by selling shareholders), SABR -1.8% (prices 24,000,000 shares of common stock by existing stockholders at a price of $26.00 per share), ARCI -1.7% (announced the return of Edward Cameron as President and CEO), SYT -1.2% (cont vol surrounding M&A spec), TRUE -1.1% (following late move lower on reports of California Dealers lawsuit), ARMK -1% (announces a 25 mln share secondary offering of common stock by selling stockholders)

Analyst comments: WBAI -5.6% (downgraded to Sell at Deutsche Bank ), SRPT -3.7% (downgraded to Neutral from Buy at BofA/Merrill), SFUN -1.8% (downgraded to Hold at Brean Capital), DDD -0.9% (downgraded to Perform from Outperform at Oppenheimer)

>>> US Gapping up

Gapping up
In reaction to earnings/guidance
: BBY +8.4%, QSII +8.1%, KZ +7.8%, TSL +6.4%, CRM +5.3%, NM +4.2%, WSM +4%, YOKU +3%, KIRK +3%, ACXM +2.9%, (also plans to sell IT Infrastructure Management Business), NGG +1.4%, EGHT +1.2%, .

M&A news: CTP +45.6% (agreed to exclusive negotiations to be acquired by DHR International; pricing and other terms not disclosed, but indicated preliminary price below the $7 per share DHR previously proposed), OCR +1.5% (to be acquired by CVS Health (CVS) for $98.00/share), .

Select pharma/biotech related names showing strength: AVEO +8.7%, ONCY +6.5%, CYCC +3.6%, CTIC +2.8%, GSK +1.8%, TKMR +1.8%, OSUR +1.7%, AZN +1.5%, SHPG +1.3%

Select oil/gas related names showing early strength: SDRL +2.1%, SDRL +2.1%, BP +1.4%, RDS.A +1.3%, STO +1.2%

Other news: AMPE +37.4% (announced positive results of its OptimEyes trial for DME), CALA +19.8% (reports positive initial Phase I safety data for CB-839, used to treat Acute Leukemias), PRAN +17.4% (announces the publication of minutes from the EMA regarding the previously announced Orphan Drug Designation for PBT2), ISR +17% (following ~100% move higher yesterday), ATNM +10.4% (following late move higher yesterday), MNGA +9.4% (announces that a major producer of painting systems viewed a MagneGas2 demo and has requested an immediate supply of the fuel for metal cutting), BLUE +8% (released abstract highlights including updated data for its Phase 1/2 HGB-205 study of LentiGlobin BB305), IPCI +7% (intends to accelerate its Rexista Oxycodone XR development program on the basis of positive feedback from the FDA), ACXM +2.9% (entered into an agreement to sell its IT Infrastructure Management business to Charlesbank Capital Partners and M/C Partners for total cash consideration of up to $190 mln; co also reported preliminary Q4 results), NBG +2.9% (cont vol surrounding Greece negotiations), QCOM +1.5% (announces an accelerated share repurchase agreement for $5 bln of its common stock, or ~57.7 mln shares), TTWO +1.3% (favorable commentary on Wednesday's Mad Money), REGN +0.9% (Regeneron Pharms and Sanofi (SNY) reports results from Phase 3 studies with Sarilumab in patients with Rheumatoid Arthritis met its co-primary efficacy endpoints)

Analyst comments: TNAV +3.8% ( initiated with a Outperform at Northland Capital; tgt $15), SSYS +3.3% (upgraded to Outperform at Oppenheimer), VOD +1.7% (upgraded to at ), ICPT +1.2% (initiated with an Overweight at Barclays; $425 tgt), BABA +1.1% (initiated with a Outperform at Bernstein)

WWD : Luxury Seen Growing 2-4% in 2015: Study

Luxury Seen Growing 2-4% in 2015: Study

MILAN — Luxury is seen growing in 2015, although the fluctuations in exchange rates continue to be a significant determining factor, according to the Worldwide Luxury Markets Monitor 2015 Spring Update by Bain & Co. and Fondazione Altagamma presented in Milan on Thursday.

The luxury market is expected to grow between 2 and 4 percent at constant exchange in 2015.

The devaluation of the euro supported luxury’s performance at the end of 2014 and has been even more relevant since the beginning of 2015. Last year is expected to close with industry revenues of 224 billion euros, or $249 billion at current exchange rates. That represents 3 percent gain at current exchange rate and a 4 percent rise at constant exchange rate.

In the first quarter of 2015, sales are seen growing 2 to 3 percent at constant exchange and 12 to 13 percent at current rates.

Armando Branchini, vice chairman of Altagamma and author of the luxury association’s Consensus study, also presented on Thursday, noted reported numbers are “most likely sparkly, but to have a correct indication of the growth of real consumer spending, it’s best to present forecasts at constant exchange.”

Using this parameter, the study forecasts 5 percent growth in Europe and Japan; a 4 percent gain in the Middle East and in the rest of the world; a 3 percent rise in the America; and a 2 percent uptick in Asia. In terms of categories, shoes and bags are seen up 4 percent as well as jewelry and watches, while clothing, perfumes and cosmetics are seen gaining 3 percent.

Claudia D’Arpizio, partner at Bain in Milan, underscored how the luxury consumer “is increasingly more global and aware of the pricing dynamics. The big differences in price between the markets, such as the over distribution in certain countries and cities, appear unsustainable and require an immediate rethinking of some key industry dynamics.”

Currency fluctuations are seen as a real challenge, impacting price differentials and tourist flows.

Last year, mature markets and the Middle East showed a positive performance, while Asia presented a mixed scenario as Greater China stagnated and South Korea grew briskly.

The Asia Pacific region registered a 3 percent rise at constant exchange and a 2 percent gain at current exchange. Europe was up 2 percent as the weakening euro boosted tourist flows in the second half. The Americas grew 3 percent thanks to sound local and touristic consumption and the currency effect offset a slight slowdown in the second half. Japan showed a 9 percent growth in real terms, although a VAT increase softened local spending in the second half. At current exchange, sales rose 1 percent in the country.

The rest of the world was up 5 percent at constant and 4 percent at current exchange. A slowdown in the Middle East in the second half was driven by a decline in Russian spending and the oil price drop impacting locally.

According to the study, accessories remained a leading category, rising 4 percent and accounting for 29 percent of business. In particular, shoes stood out. The men’s segment outperformed across the board. Apparel was up 2 percent, accounting for 25 percent of total. Women’s wear was more dynamic while men’s wear was dented by the negative impact of Mainland China. Hard luxury was up 2 percent with watches showing stability.

The euro’s devaluation in the second half versus the Swiss Franc partially offset the worsening situation in Asia. Jewelry outperformed on solid fundamentals. Hard luxury represented 22 percent of total sales, versus a 23 percent in the previous year. Beauty was flat, accounting for 20 percent of total, with cosmetics outperforming fragrances. The U.S. and emerging markets were the main growth drivers in the beauty category.

The study also took the 2012-2015 period into consideration and gave some insight into the full-year 2015.

At constant exchange rates, Europe is seen to grow between 3 and 5 percent; the Americas between 1 and 3 percent; Japan 5 to 7 percent; Asia Pacific excluding Mainland China, from a 1 percent drop to a 1 percent gain; Mainland China between 2 and 4 percent; and the rest of the world 1 percent.

The weak euro is supporting inbound tourism in the euro zone, especially from China and the U.S. Italy is starting to recover, with a timid rebound of the multi-brand channel and Milan is the number one shopping destination, also lifted by initiatives associated with the Expo running until the end of October. Spain has rebounded above expectations, while the Swiss Franc’s appreciation is redirecting touristic and local flows from Switzerland to Italy and France. Eastern Europe is still suffering, with Russia still on a negative trend in 2015.

The U.S. so far is below expectations in 2015 with exceptional cold weather impacting the first quarter and a slow rebound of spending by the upper middle class. Also, a decrease in tourist shopping and the strong dollar was only partially offset by selected price adjustments. A drop in the number of Chinese travelers impacted the West Coast and Hawaii, Las Vegas and New York, while less tourists from Latin America and Russia impacted Miami. E-commerce outperformed across formats.

Japan is the fastest growing market in real terms, becoming the top tourist destination for the Chinese (up 160 percent year-on-year in February 2015). In Asia Pacific, D’Arpizio sees the year 2015 as a transitional one for Mainland China with Hong Kong and Macao the worst performers, Taiwan gaining traction, and a very dynamic South Korea thanks to Chinese flows redirected from Hong Kong.

“This is China’s moment of truth: all key market actors are struggling to revamp the market,” D’Arpizio said, highlighting the still negative impact of clampdown on lavish spending and increasing overseas purchase driven by price differentials and currency fluctuations. “Brands are testing price differentials reduction; real estate developers are turning malls into entertainment spots, and consumers are looking for bargains . While Chinese consumer spending continues to grow, it’s more skewed towards foreign and cheaper shopping.”

(Jefferies) Global Pharma : PFE to top picks, M&A on its way...

Page 4 PFE / M&A


>>> Key Takeaway
We have promoted PFE to our "Top Global Pick", mostly on the strength of the recent rebound in ABBV shares, which have been moved to 3rd positionafter AZN (our Top European Pick, 2nd globally). We also remain very positive on Roche (ASCO), LLY (CETP) and ZTS (M&A/ Bayer spin-version). We remain cautious on ABT, GSK and BMY, though we note that we would likely be supportive of a bid for PRGO by either ABT or PFE.


Global Pharma QM: This month's edition focuses on key upcoming medical meetings
(ASCO [full preview], ADA, EULAR), other data read outs (ABT-199, solanezumab
EXPEDITION-EXT, semaglutide), Q1'15 earnings wrap-up, some key observations on script
data, as well as the latest updates to our "Order of Preference".

PFE moved to Top Global Pick; Still very bullish on ABBV: We have moved Pfizer
to our Top Global Pick based on the strong positive asymmetry around the base business
(Ibrance/ Prevnar-13), upside to GEP (EM growth/ valuation) and optionality with regards to
M&A and restructuring. AstraZeneca, our Top European Pick (2nd globally) has the best risk/
reward with regard to pipeline in our view, with the IO and RIA franchises under-appreciated
by the market and with significant catalysts over the next 6-18 months. We remain very
positive on AbbVie (3rd globally) based on the durability of Humira, pipeline and further
optionality with regard to M&A and cash deployment.

ASCO mostly known based on abstracts; BMY on the defensive: ASCO abstracts
again contained more information than expected this year, with the most notable being for
Roche with regards to PD-L1 chemo combo data in NSCLC as well as very positive data from
POPLAR in PD-L1 positive NSCLC patients. We also view the PD-L1/ treme combo in NSCLC
abstract from AstraZeneca as positive, especially given the strength of the data in PD-L1
negative patients, with further updates to this study expected at the congress. Whilst it is still
too early to be sure, ASCO 2015 looks like the meeting when investors will finally question
the durability of Bristol-Myers' "lead" over its competitors, which we do not believe exists in
combination immunotherapy. We expect the company to be on the defensive during Q&A
at the meeting, which never bodes well for a high multiple stock.

ADA looks benign; Focus on Merck & Co.: ADA is unlikely to contain any major surprises
for large cap pharma, given that Merck & Co. now appears to be able to reassure the market
with regard to the TECOS study on Januvia. Potentially the ADA meeting could serve as a
strong relaunch platform for Januvia, reigniting the growth of the brand, which has stalled
under competitive pressure in recent years