The Zacks Analyst Blog Highlights: Amylin Pharmaceutical, Bristol-Myers Squibb, Eli Lilly, Express Scripts and Medco Health Solutions - Press Releases

By
A A A
Share |

For Immediate Release

Chicago, IL - March 30, 2012 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Amylin Pharmaceutical ( AMLN ), Bristol-Myers Squibb ( BMY ), Eli Lilly ( LLY ), Express Scripts Inc. ( ESRX ) and Medco Health Solutions, Inc. ( MHS ).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Thursday's Analyst Blog:

Amylin Shoots Up on Takeover Rumors

Amylin Pharmaceutical ( AMLN ) shares shot up 54.45% on rumors regarding a take-over bid by Bristol-Myers Squibb ( BMY ). According to Bloomberg, which cited unnamed sources, Bristol-Myers had made an offer of $22 per share ($3.5 billion). However, the offer was rejected by Amylin's board of directors last month.

Why Amylin?

Following the termination of Amylin's exenatide agreement with Eli Lilly ( LLY ) in November 2011, Amylin has been considered to be a potential takeover candidate for companies with a focus on diabetes. Amylin's exenatide franchise consists of Byetta and Bydureon (once-weekly exenatide). While Byetta sales have been lagging expectations, Bydureon, which was launched earlier this year in the US, could very well be a blockbuster. 

Amylin is currently looking for ex-US partners for the exenatide franchise, which should help maximize the value of the product.

Meanwhile, Bristol-Myers has been pretty active on the acquisition front over the past few quarters. Earlier this year, the company acquired Inhibitex. Other acquisitions in the recent past include Medarex, Inc., ZymoGenetics, Inc., and Amira Pharmaceuticals, Inc.

With Bristol-Myers already having a presence in the diabetes market (Onglyza and Kombiglyze), the Amylin acquisition would make sense.  Bristol-Myers is facing a major patent cliff with its lead product, Plavix, slated to lose US exclusivity in May 2012.

Our Take

Amylin could be an attractive takeover target for companies with a focus on the diabetes market. Chances remain that other companies could express an interest in acquiring Amylin and a deal could be sealed in the late 20s.

We currently have a Neutral recommendation on Amylin, which carries a Zacks #3 Rank (short-term "Hold" rating).

Express Scripts, Medco to Merge Next Week

The wait for investors is finally over as Express Scripts Inc. ( ESRX ) recently announced that its merger with Medco Health Solutions, Inc. ( MHS ) might close in the week starting April 2, 2012. The merger is subject to satisfaction or waiver of the remaining closing conditions.

In mid-March, Express Scripts and Medco Health had agreed to extend their merger-closing date. According to the Hart-Scott-Rodino Act, the waiting period for the merger expired on March 12, 2012. However, the companies decided to work with the US Federal Trade Commission ( FTC ) and planned to close the merger by early second quarter 2012.

Express Scripts had agreed to acquire Medco Health in July last year, for $29.1 billion ($71.36 per share) in cash and stock. At the time of announcing the deal, Express Scripts said that Medco Health shareholders will receive $28.80 in cash and 0.81 shares of Express Scripts for each share of Medco Health that they own.

Following the closure of the acquisition, Express Scripts' shareholders will own approximately 59% of the merged entity, with Medco Health's shareholders holding the remaining.

Express Scripts expects to generate $4 billion annually in cash from operations, following the integration of the two companies.

Our View

Currently, we have a Neutral recommendation on Express Scripts. The stock carries a Zacks #3 Rank (Hold rating) in the short-run. We note the acquisition of Medco Health will generate more synergies for the two Pharmacy Benefit Management ( PBM ) companies, in the form of lower cost of prescription drugs and improved quality of healthcare.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515 .

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518 .

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com

http://www.zacks.com


 
AMYLIN PHARMA ( AMLN ): Free Stock Analysis Report
 
BRISTOL-MYERS ( BMY ): Free Stock Analysis Report
 
EXPRESS SCRIPTS ( ESRX ): Free Stock Analysis Report
 
LILLY ELI & CO (LLY): Free Stock Analysis Report
 
MEDCO HLTH SOL (MHS): Free Stock Analysis Report
 
To read this article on Zacks.com click here.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Stocks

Referenced Stocks: AMLN , BMY , ESRX , FTC , PBM

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Stocks

Referenced

Most Active by Volume

89,970,926
  • $16.15 ▲ 0.12%
77,131,582
  • $58.94 ▼ 1.31%
67,336,935
  • $26.56 ▲ 1.68%
48,814,124
  • $86.20 ▲ 0.02%
47,526,126
  • $23.21 ▲ 0.78%
44,660,424
  • $23.91 ▲ 6.36%
38,799,699
  • $4.289 ▲ 4.36%
36,199,890
  • $40.01 ▼ 0.97%
As of 4/17/2014, 04:07 PM