Apr 25, 2016

Posted by in Biotech Stocks | 0 Comments

Momentum Stocks: Novavax Inc (NASDAQ:NVAX), Neothetics Inc (NASDAQ:NEOT), Baxalta Inc (NYSE:BXLT)

Momentum Stocks: Novavax Inc (NASDAQ:NVAX), Neothetics Inc (NASDAQ:NEOT), Baxalta Inc (NYSE:BXLT)

Novavax Inc (NASDAQ:NVAX) surged +1.82% and ended at $5.60. The total traded volume was 4.62 million shares and market capitalization arrived at $1.54 billion. The stock has a 52-week high price of $15.01 and its 52-week low was recorded at $4.07, while during last trade its minimum price was $5.33 and it gained the highest price of $5.60.

Novavax Inc (NASDAQ:NVAX) on April 4, 2016 announced that Iksung Cho has been named Vice President, Biostatistics.

Mr. Cho joined Novavax in December 2015 as Executive Director, Biostatistics with responsibility for coordinating statistical and statistical programming activities for vaccine candidates in various stages of clinical development. Prior to joining Novavax he was Senior Statistician at PATH, an international nonprofit organization that aims to accelerate innovation across vaccines, drugs, diagnostics, devices and system and service innovations.

Mr. Cho’s experience includes positions of increasing responsibility in biostatistics and data management at Aviron, Merck and MedImmune, where he was Vice President of Global Biostatistics. He earned Master’s degrees in both statistics and applied mathematics from Virginia Polytechnic and State University and completed graduate studies in mathematics.

Neothetics Inc (NASDAQ:NEOT) reported the increase of +40.54% to close at $1.04 with the overall traded volume of 4.10 million shares. Its market capitalization on last close reached to $20.10 million. The company has the total of 13.75 million outstanding shares. Its intraday-low price was $0.77 and its hit its day’s highest price at $1.22.

Neothetics Inc (NASDAQ:NEOT) on March 29, 2016 reported financial results and business progress for the fourth quarter 2015.

Fourth Quarter Ended December 31, 2015 Financial Results

Research and development expenses for the fourth quarter of 2015 were $7.0 million, compared to $1.9 million for the same quarter in 2014. R&D expenses for full year 2015 were $34.4 million, compared to $5.2 million in full year 2014. The increase in R&D expenses in year over year primarily reflects expenses related to conducting the Phase 3 LIPO-202 AbCONTOUR1 and AbCONTOUR2 clinical trials, as well as the planning and initiation of supplemental clinical studies.

General and administrative expenses for the fourth quarter of 2015 were $2.2 million, compared to $1.3 million for the same quarter in 2014. Total general and administrative expenses for full year 2015 were $7.6 million, compared to $4.4 million in full year 2014. The increase in general and administrative expenses year over year  is primarily attributable to general legal fees, insurance, and investor and public relations activities increasing as a result of becoming a public company, as well as the hiring of additional personnel.

Net loss for the fourth quarter of 2015 was $9.5 million, or $0.69 basic and diluted net loss per share, compared to a net loss of $2.9 million, or $0.45 basic and diluted net loss per share, for the same period in 2014. For the full year, net loss was $43.2 million, or $3.15 basic and diluted net loss per share, compared to a net loss of $10.8 million, or $5.36 basic and diluted net loss per share for the full year ended December 31, 2014.

Cash and cash equivalents were $37.7 million as of December 31, 2015 compared to $75.9 million as of December 31, 2014.

Baxalta Inc (NYSE:BXLT) moved up +0.73% to settle at $41.38. Its total traded volume during last trading session was 3.91 million shares. The overall market worth of this company is about $28.40 billion. The 52 week range of the stock remained $29.83 – $42.38, while its day’s lowest price was $40.89 and its hit its day’s highest price at $41.41.

Baxter International Inc. (BAX) and Baxalta Inc (NYSE:BXLT) announced on April 21, 2016, that Baxter has commenced an offer to exchange up to 12,800,000 shares of Baxalta common stock that are currently owned by Baxter, which represents approximately 1.9% of the outstanding common stock of Baxalta, for shares of Baxter common stock that are validly tendered and not validly withdrawn in the exchange offer.

Following the completion of the exchange offer, if Baxter disposes of all of the remaining shares of Baxalta common stock held by it in the exchange offer, Baxalta will be wholly independent from Baxter, except that certain agreements between Baxter and Baxalta will remain in place.

Key elements of the exchange offer:

  • Baxter stockholders have the option to exchange all, some or none of their shares of Baxter common stock for shares of Baxalta common stock, subject to proration.
  • Tendering Baxter stockholders are expected to receive approximately $107.52 of Baxalta common stock for every $100 of Baxter common stock tendered and accepted in the exchange offer, subject to the upper limit.
  • Baxter will determine the ratio at which shares of Baxter common stock and Baxalta common stock will be exchanged by reference to the simple arithmetic average of the daily volume-weighted average prices of shares of Baxter common stock and Baxalta common stock on the New York Stock Exchange over a three consecutive trading day averaging period ending on and including the second trading day preceding the expiration date of the exchange offer.
  • The number of shares of Baxter common stock that will be accepted in the exchange offer will depend on the final exchange ratio and the number of shares of Baxter common stock tendered.
  • The exchange offer and withdrawal rights are scheduled to expire at 11:59 p.m., New York City time, on May 18, 2016, unless the exchange offer is extended or terminated.
  • Baxter currently holds 30,506,097 shares of Baxalta common stock, which represents approximately 4.5% of the outstanding common stock of Baxalta. If Baxter does not exchange all of the shares of Baxalta common stock owned by it in the exchange offer, Baxter intends to, prior to or following the completion of the exchange offer, make a contribution to Baxter’s U.S. pension fund or distribute as a special dividend to all Baxter stockholders, on a pro rata basis, some or all of its remaining shares of Baxalta common stock.
  • If Baxalta’s proposed merger with Shire plc (“Shire”) is consummated, each share of Baxalta common stock will be converted into the right to receive both (i) $18.00 in cash and (ii) 0.1482 of an American Depositary Share of Shire. Although Shire has agreed to permit a Baxalta stockholder to elect to receive 0.4446 of a Shire ordinary share in lieu of such fraction of an American Depositary Share of Shire, the deadline for such election is expected to have passed before the exchange offer is completed. The merger transaction with Shire, which will result in a taxable gain or loss for each Baxalta stockholder, has been approved by the boards of directors of both Shire and Baxalta. Closing of the transaction is subject to approval by Baxalta and Shire shareholders, certain regulatory approvals, receipt of certain tax opinions and other customary closing conditions. The transaction is expected to close in early June 2016

 

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