Shares of Celgene (CELG) dropped sharply in trading after hours on Thursday after announcing that they will not initiate a phase 3 trial for a Crohn’s disease drug. The company stated in a press release that they will not pursue a the trial because they had evaluated the dataset from the phase 2 trial and determined that it was not likely that the drug would achieve the desired phase 3 endpoints. CELG shares closed down 6.37% in after hours trading to settle at 127.30.
Shares of Plantronics Inc. (PLT) rose sharply in trading on Wednesday after a Federal District Court ruled in favor of the company in a lawsuit brought by GN Audio. The lawsuit alleged PLT had monopolized the distributors market in the United States. PLT shares finished at 46.43, up +3.89%.
Shares of Juno Therapeutics (JUNO) were volatile in trading on Tuesday after rumors circulated of potential takeover interest. This has been a recurring theme recently and it remains probable that the company will become a takeover target in the near future. However, no details have yet emerged. JUNO shares closed up 0.37% to settle at 43.04 for the session. Keep an eye on the stock for further rumors.
Shares of Allergan (AGN) sank in trading on Monday after a judge invalidated some of the company’s patents. The patents in question were related to AGN’s dry-eye medicine Restasis, meaning that AGN may potentially face competitors. AGN shares initially dropped as much as -5% on the news, but recovered some of its losses thereafter to close at 198.41, down -3.46%.
Shares of Monsanto (MON) rose sharply in trading on Friday after it was reported that Bayer will sell some of its units to BASF. Bayer is in the process of purchasing Monsanto in a buyout deal valuing MON at $128 per share, or $56B. By selling off assets, Bayer hopes to make the merger between the companies more acceptable to regulators. MON shares closed the session up +1.99% to settle at 122.30.
Shares of Helios and Matheson (HMNY) were volatile in trading on Wednesday after short selling company Citron Research warned investors that the company’s stock was about to lose nearly half its value soon due to poor financial strength. The stock was up nearly 20% at the time of Citron’s statement, and promptly dropped about $5 in value afterwards. HMNY shares closed at 32.90 for the session, but are down -11% in after hours trading. Keep an eye on the stock for further volatility.
Shares of Procter and Gamble (PG) sank today after activist investor Nelson Peltz of Trian Management failed to be elected to the company’s board of directors. Peltz had been pushing to win a board seat against substantial objections. After failing to obtain a seat on the board, PG’s ceo stated that he and Peltz will interact respectfully. Trian however will contest the vote results. PG stock finished down -0.54% to settle at 91.58, but traded as low as 89.86 after the vote results were announce. Keep an eye on PG for further developments.
Shares of pharmacy stocks such as Walgreens (WBA) and CVS (CVS) continued to decline on Monday as it now seems clear that Amazon (AMZN) will make a move into the drug distribution business. This will potentially put AMZN in the position to leverage its e-commerce platform to allow people to shop for prescription drugs with greater ease than ever before. I expect that this might also push pharmacies to seek an arrangement with AMZN to list their products on its website, but either way it should be a big win for AMZN if successful. Keep an eye on this situation as it continues to develop. WBA was down -3.18%, CVS down -3.41%, and AMZN up 0.14% for the session.
Shares of Herbalife Corporation (HLF) rose sharply in trading on Friday after the company announced that it will buy back roughly seven percent of its stock. The buyback is designed to improve shareholder value. The move comes as yet another blow to activist investor Bill Ackman, who has maintained a short position in HLF since 2012. Shares of HLF closed at 75.25, up +11.28% for the session. Keep an eye on HLF for further developments.
Shares of MannKind (MNKD) rose dramatically in trading on Thursday after the FDA made drug label changes for the company’s Afrezza drug. These changes will make it easier for the company to sell Afrezza by making it easier to market the drug. Shares of MNKD rose over +40.11% on the news and settled at 4.96 for the session. Keep an eye on the stock for further developments.