Updated from 2:45 p.m. EST with new stock prices
A few health companies aired buyouts, agreements, updates and earnings on Monday, sending stocks in both directions on an overall sullen start to the week.
said it would buy fellow blood-cancer drug company
( PHRM) in a $2.9 billion
cash-and-stock deal. Celgene will pay $72 a share for Pharmion -- $25 in cash and $47 in Celgene stock. The price is a 46% premium to Pharmion's Friday closing price.
Pharmion shares rose $15.84, or 32.1%, to $65.12, and Celgene fell 90 cents cents, or 1.4%, to $64.00. Both stocks are components of the Nasdaq biotechnology index, which was down 12.55, or 1.5%, to 835.66.
Another component of the index,
( SCRX), signed an agreement with
to exclusively market diabetes drugs Prandin and PrandiMet, upon Food and Drug Administration approval, to physicians in the U.S. Sciele Pharma will have the right of first refusal to obtain marketing rights in the U.S. to other Novo Nordisk products containing repaglinide, the active pharmaceutical ingredient in both Prandin and PrandiMet.
Sciele Pharma didn't disclose financial terms of the deal, but said it may receive revenue based on certain dollar baseline targets being met and expects this agreement to be immediately accretive. As a result, it increased its full-year 2008 revenue guidance to $440 million to $455 million, up roughly $10 million over previously announced guidance. It now expects to earn $1.97 to $2.07 a share for fiscal 2008, up roughly 10 cents from its previous guidance.
Sciele Pharma added 96 cents, or 4.8%, to $21.01. Novo Nordisk fell $1.27, or 1%, to $121.21.
gave an update Monday, saying it met with the FDA following the completion of a comprehensive data review from its phase III studies of Miraxion for Huntington's disease, and the agency indicated another phase III trial with robust results may be sufficient to support a new-drug application (NDA).
The company said it's in discussions with the Huntington Study Group to determine the design of the phase III trial, and is considering whether it will conduct this study itself or seek a partner to advance Miraxion in Huntington's disease. Shares garnered 13 cents, or 45.2%, to 43 cents.
In another update,
said it has agreed to increase the amount it will pay to settle heart patients' legal claims related to Guidant Corp. defbrillators that were subject to recalls and safety warnings in 2005 and 2006, by $45 million. The expanded settlement comes closer to $245 million (the previous settlement was for $195 million) and covers 8,500 claims. Shares were trading up 11 cents, or 0.9%, to $12.21.
Wright Medical Group
said it will offer $150 million in convertible senior notes due 2014 and intends to use the net proceeds for general corporate purposes, including for acquisitions. The company granted underwriters the right to purchase an additional $22.5 million of the notes. Shares fell $2.36, or 8.3%, to $26.12.
And in earnings,
reported a net loss of $4.1 million, or 15 cents a share, for the fiscal second quarter, vs. a loss of $12.5 million, or 49 cents a share, in the year-ago quarter. Net sales were $28.9 million compared with $34.1 million in the second quarter of fiscal 2007. Analysts polled by Thomson Financial expected a loss of 22 cents a share on revenue of $30.9 million.
The company's U.S. net sales fell due to the loss of coverage from the Centers for Medicare and Medicaid Services for its VNS Therapy Systems for treatment-resistant depression earlier in the year. The company, which has since made two rounds of workforce reductions, said Monday that it expects to outline its approach to TRD reimbursement early next year.
Cyberonics shares edged up 25 cents, or 2%, to $12.70.