New User:

-or-
Username:
Password:
Forgot your password?

Stock Market & Financial Investment News

News Breaks
January 17, 2014
05:23 EDTSHPGShire executes agreements to divest Dermagraft
Shire announced that it has entered into a definitive agreement pursuant to which it has sold its Dermagraft assets to Organogenesis. Dermagraft is a living skin substitute indicated for use in the treatment of full-thickness diabetic foot ulcers and is approved for use in the US and Canada. Going forward Organogenesis will assume all financial and management responsibility for Dermagraft. The Dermagraft assets that have been sold to Organogenesis comprise the key operating assets relating to the development, manufacture and sale of the Dermagraft product. These assets include intellectual property relating to Dermagraft including patents, trademarks and know-how; regulatory filings and registrations relating to Dermagraft; certain manufacturing plant, equipment and materials; Dermagraft product inventory and accounts receivable. These assets had a value of $683M in Shire's September 30, 2013 balance sheet. Shire is generally retaining legacy liabilities relating to the Dermagraft business, including the previously announced Department of Justice investigation relating to the sales and marketing practices of Advanced Biohealing. Shire will receive no upfront payment from Organogenesis but is entitled to receive up to $300M cash in total milestone payments should Organogenesis meet certain annual net sales targets between now and 2018. Shire will record a loss on disposal and associated impairment charges of approximately $650M in Q4, which will be excluded from Non GAAP earnings.
News For SHPG From The Last 14 Days
Sign up for a free trial to see the rest of the stories you've been missing.
1 | 2 | 3 | all recent SHPG news | >>
October 16, 2014
05:21 EDTSHPGAbbVie recommends holders vote against Shire transaction
Following Shire's (SHPG) waiver of the three-day notice period, AbbVie (ABBV) announces its board withdraws its recommendation made on July 18 regarding the proposed Shire transaction and recommends that stockholders vote against the transaction. AbbVie and its board made this determination following a detailed consideration of the impact of the U.S. Department of Treasury's unilateral changes to the tax rules, as issued on September 22. The breadth and scope of the changes, including the unexpected nature of the exercise of administrative authority to impact longstanding tax principles, and to target specifically a subset of companies that would be treated differently than either other inverted companies or foreign domiciled entities, introduced an unacceptable level of uncertainty to the transaction. Additionally, the changes eliminated certain of the financial benefits of the transaction, most notably the ability to access current and future global cash flows in a tax efficient manner as originally contemplated in the transaction. This fundamentally changed the implied value of Shire to AbbVie in a significant manner. Under the conditions of AbbVie's offer and the terms of the Co-operation Agreement, the withdrawal of the recommendation alone will not cause a lapse of AbbVie's offer or terminate the Co-operation Agreement between AbbVie and Shire. Unless Shire and the U.K. Takeover Panel agree otherwise, AbbVie must convene an AbbVie stockholder meeting to consider the adoption of the U.S. merger agreement. AbbVie's offer will lapse if the company's stockholders do not adopt the agreement. Assuming Shire provides the requisite cooperation and consents, a pre-effective amendment to the registration statement filed by AbbVie Private Limited in connection with the combination is expected to be filed with the SEC as soon as practicable. Under the terms of the Co-operation Agreement, following the withdrawal of the AbbVie Board of Directors' recommendation, a break fee of approximately $1.64B will be payable to Shire if either: AbbVie stockholders do not approve the adoption of the U.S. merger agreement at an AbbVie stockholder meeting; or such a meeting does not occur by December 14.
October 15, 2014
17:17 EDTSHPGAbbVie, Shire both look like buys no matter what, Barron's says
AbbVie (ABBV) and Shire (SHPG) both offer great value and are buys even without a merger, Barron's argues in its 'Barron's Take' column. Reference Link
16:37 EDTSHPGOn The Fly: Closing Wrap
The market opened sharply lower amid sliding oil prices, worse than expected economic data, and the potential for a major M&A deal to fall apart due to tax inversion rule changes. The Dow fell more than 350 points within the first 30 minutes of trading, but then bounced back to move above its opening level. The volatility did not end there, however, as the market swung several more times during the session. The S&P 500's drop wiped out its gains for the year at one point, but a late day rally significantly cut the losses for the major averages. ECONOMIC EVENTS: In the U.S., retail sales, which were expected to be down 0.1% in September, actually fell 0.3% in the month and slipped 0.2% excluding autos. The Producer Price Index for final demand decreased a seasonally adjusted 0.1% in September from the prior month, marking the first decline in the measure in over a year. The core PPI reading, which excludes food and energy, was unchanged, versus expectations for a 0.1% rise. New York's Empire State manufacturing index fell 21.4 points to 6.2 in October, severely missing the expectation for a narrower pullback to a reading of 20. Business inventories rose 0.2% in August, versus expectations for an increase of 0.4%. In China, the consumer price index climbed 1.6% in September from a year earlier, which was below the consensus projection for 1.7% inflation and down from 2% inflation in August. China's PPI plunged 1.8% year-over-year in September, which was more than the 1.6% slide expected and an acceleration of the 1.2% year-on-year decline in August. COMPANY NEWS: Shares of Shire (SHPG) plunged $74.08, or 30.29%, to $170.49 after AbbVie's (ABBV) board last night stated that it was reconsidering its recommendation that the company's shareholders back a takeover of Irish drugmaker in light of the potential impact of tax rule changes on the deal. During the day, Bloomberg reported that people familiar with the matter say AbbVie is close to abandoning its $51B takeover bid, while Shire announced that it has agreed to waive the requirement for three business days' notice for AbbVie's board to meet to consider its offer. In contrast, AbbVie ended the session up 50c, or 0.92%, at $54.63... Wal-Mart (WMT) held its annual meeting, during which it lowered its fiscal year 2015 net sales growth forecast to 2%-3%, citing a tougher sales environment than it anticipated a year ago. The company indicated in February that it expected net sales growth to be at the low end of its guidance provided last October of 3%-5%. The world's largest retailer also cut its planned retail square foot growth expectations, due to a moderation of large format store growth and accelerated e-commerce investments. Following the outlook revisions, Wal-Mart closed down $2.78, or 3.57%, to $75.20. MAJOR MOVERS: Among the notable gainers was Penford Corporation (PENX), which jumped $7.60, or 69.15%, to $18.59 after the company agreed to be acquired by Ingredion (INGR) for $340M, or $19.00 in cash per share. Also higher was Southwestern Energy (SWN), which rose $2.59, or 7.82%, to $35.69 after it was among a number of oil and gas exploration and production names upgraded by analysts at Bank of America Merrill Lynch. Among the noteworthy losers was Nu Skin (NUS), which dropped $4.47, or 9.13%, to $44.50 after the company disclosed new debt arrangements that come with certain restrictions, including restrictions on the payment of dividends. Also lower were shares of Covidien (COV), which fell $6.50, or 7.04%, to $85.86 in the wake of the news for Shire and AbbVie, which investors may have read as jeopardizing Covidien's deal to be bought by Medtronic (MDT). Note that on October 3 Medtronic announced that it intends to use approximately $16B in external financing to complete the acquisition of Covidien and said the strategic benefits of the transaction "remain compelling" despite the additional expense of the new financing. INDEXES: The Dow dropped 173.45, or 1.06%, to 16,141.74, the Nasdaq slipped 11.85, or 0.28%, to 4,215.32, and the S&P 500 fell 15.21, or 0.81%, to 1,862.49.
15:00 EDTSHPGShire-Allergan, AbbVie-Pfizer deals possible if merger scrapped, Bloomberg says
Subscribe for More Information
13:45 EDTSHPGShire waives notice requirement for AbbVie board meeting
Shire (SHPG) announces that, in order to "allow the period of uncertainty for its shareholders, employees and other stakeholders to be reduced," it has agreed to waive the requirement for three business days' notice for AbbVie's (ABBV) board to meet to consider its recommendation of the offer for Shire.
13:19 EDTSHPGAbbVie close to dropping takeover bid for Shire, Bloomberg reports
Subscribe for More Information
12:59 EDTSHPGShire at lows down 33% after Bloomberg says AbbVie close to dropping bid
Subscribe for More Information
12:58 EDTSHPGAbbVie close to dropping takeover bid for Shire, Bloomberg reports
12:36 EDTSHPGOn The Fly: Midday Wrap
Subscribe for More Information
10:48 EDTSHPGShire tanks with AbbVie calling board meeting over merger
Subscribe for More Information
10:02 EDTSHPGOn The Fly: Analyst Upgrade Summary
Subscribe for More Information
09:20 EDTSHPGOn The Fly: Pre-market Movers
Subscribe for More Information
09:11 EDTSHPGShire upgraded to Buy from Fair Value at CRT Capital
Subscribe for More Information
07:30 EDTSHPGAbbVie review of Shire deal an 'unwelcome surprise,' says Jefferies
Subscribe for More Information
06:58 EDTSHPGAbbVie volatility elevated into reconsidering Shire merger
Subscribe for More Information
06:55 EDTSHPGShire volatility elevated into AbbVie reconsidering merger recommendation
Subscribe for More Information
05:34 EDTSHPGShire says AbbVie should proceed with recommended offer
Subscribe for More Information
October 14, 2014
19:50 EDTSHPGShire down nearly 6% following AbbVie reconsidering merger recommendation
Subscribe for More Information
19:48 EDTSHPGAbbVie board reconsidering recommendation to holders to accept Shire merger
Subscribe for More Information
19:46 EDTSHPGAbbVie board reconsidering recommendation to holders to accept Shire merger
Subscribe for More Information
1 | 2 | 3 | all recent SHPG news | >>

Sign up for a free trial to see the rest of the stories you've been missing.

I agree to the theflyonthewall.com disclaimer & terms of use