Horizon Therapeutics Stock Soars On Acquisition By Amgen

U.S. Wholesale Inventories Rise Less Than Expected In October

The Commerce Department released a report on Friday showing U.S. wholesale inventories increased by less than expected in the month of October.

The report said wholesale inventories rose by 0.5 percent in October after climbing by 0.6 percent in September. Economists had expected wholesale inventories to increase by 0.8 percent.

Inventories of durable goods advanced by 0.7 percent in October after jumping by 1.0 percent in September, while inventories of non-durable goods edged up by 0.2 percent after coming in unchanged in the previous month.

The Commerce Department also said wholesale sales increased by 0.4 percent in October after inching up by 0.1 percent in September.

Sales of durable goods climbed by 0.8 percent in October after rising by 0.6 percent in September, while sales of non-durable goods came in unchanged after dipping by 0.3 percent in the previous month.

With inventories and sales both increasing, the inventories/sales ratio for merchant wholesalers came in unchanged from the previous month at 1.32.

Clovis Oncology Files For Chapter 11 Protection; Agrees To Sell FAP-2286 To Novartis

Clovis Oncology, Inc. (CLVS) Monday announced that certain of its subsidiaries have initiated Chapter 11 filing in the United States Bankruptcy Court for the District of Delaware and plan to sell assets through a court-supervised sales process.

For the Chapter 11 proceeding, Clovis has received a liquidity commitment of up to $75 million in a multi-draw DIP financing facility.

Prior to the Chapter 11 filing, the Company entered into a ‘stalking horse’ purchase and assignment agreement with Novartis Innovative Therapies AG to acquire substantially all of the rights of the Company to its pipeline clinical candidate, FAP-2286. As per the agreement, the company will receive an upfront payment of $50 million and up to an additional $333.75 million, with a regulatory milestone and $297 million in later sales milestones.

Clovis said it is in discussions with a number of interested parties with respect to a potential sale of one or more of its other assets.

Pre-market Movers: APVO, ACET, COUP, AMAM, CJJD…

The following are some of the stocks making big moves in Monday’s pre-market trading (as of 07.40 A.M. ET).

In the Green

Aptevo Therapeutics Inc. (APVO) is up over 58% at $5.43
Coupa Software Incorporated (COUP) is up over 21% at $75.48
China Jo-Jo Drugstores, Inc. (CJJD) is up over 17% at $3.88
The Greenbrier Companies, Inc. (GBX) is up over 15% at $40.77
Horizon Therapeutics Public Limited Company (HZNP) is up over 14% at $111.65
Gracell Biotechnologies Inc. (GRCL) is up over 11% at $2.80
Insmed Incorporated (INSM) is up over 10% at $20.38
Turkcell Iletisim Hizmetleri A.S. (TKC) is up over 8% at $4.63
Satixfy Communications Ltd. (SATX) is up over 6% at $21.00
OppFi Inc. (OPFI) is up over 6% at $2.59
Frontline Ltd. (FRO) is up over 5% at $13.54

In the Red

Adicet Bio, Inc. (ACET) is down over 35% at $11.19
Ambrx Biopharma Inc. (AMAM) is down over 21% at $3.57
Baudax Bio, Inc. (BXRX) is down over 15% at $4.40
Pharvaris N.V. (PHVS) is down over 11% at $7.60
Eagle Bulk Shipping Inc. (EGLE) is down over 9% at $46.00
Relmada Therapeutics, Inc. (RLMD) is down over 7% at $2.49
ForgeRock, Inc. (FORG) is down over 5% at $21.91

German Residential Construction Outlook Bleak, Ifo Survey Finds

Germany’s residential construction sector outlook remained bleak amid rising cancellations and record low business expectations as high inflation, rising interest rates and less subsidies damp activity, results of a survey by the ifo institute showed Monday.

Cancellations in the German residential property construction grew further in November, with the survey showing that the share of surveyed companies affected rose to 16.7 percent from 14.5 percent in the previous month.

“Companies still have well-filled order books,” ifo researcher Felix Leiss said.

“But constantly climbing construction prices, higher interest rates, and fewer subsidy options are weighing on new business.”

The ifo survey also showed that business expectations for the next six months hit a record low in November. The corresponding index dropped to minus 60.9 points, the lowest figure since the survey began in 1991.

“The business outlook for residential construction appears bleak, with a majority of companies fearing declines in the coming six months,” Leiss said.

Meanwhile, pricing intentions eased only slightly with the relevant index dropping to 45.4 points, still very high, from 51.0 in the previous month.

Many businesses are having to opt for further property price increases to pass on high material and fuel costs to customers, despite already weakened demand, ifo said. Construction prices are still rising, Leiss added.

Horizon Therapeutics Stock Soars On Acquisition By Amgen

Horizon Therapeutics Public Ltd Co (HZNP), a company focused on rare and rheumatic diseases, said on Monday that it has inked a deal for its acquisition by Pillartree Limited., Amgen Inc.’s newly formed private firm, for $116.50 per share in cash.

The acquisition values Horizon at around $27.8 billion on a fully diluted basis with an enterprise value of around $28.3 billion.

The offer price represents a premium of around 47.9 percent to Horizon’s closing price of $78.76 per share on November 29, and a premium of approximately 19.7 percent to the closing price of $97.29 per share on December 9.

Amgen said that the acquisition of Horizon and is expected to be earnings accretive from 2024 as it will support to boost its revenue and adjusted EPS.

Robert A. Bradway, CEO of Amgen said: “The acquisition of Horizon is a compelling opportunity for Amgen and one that is consistent with our strategy of delivering long-term growth by providing innovative medicines that address the needs of patients who suffer from serious diseases. Amgen’s decades of leadership in inflammation and nephrology, combined with our global presence and world-class biologics capabilities, will enable us to reach many more patients with first-in-class medicines like TEPEZZA, KRYSTEXXA and UPLIZNA. Additionally, the potential new medicines in Horizon’s pipeline strongly complement our own R&D portfolio…”

HZNP is trading up by 14.46 percent at $111.36 per share in pre-market on the Nasdaq.