PropThink: Why AMRN and SGYP Could Trade Higher On AstraZeneca's Newly Announced CEO
(Thomson Reuters ONE) -
Amarin Pharmaceuticals (NASDAQ:AMRN) could trade higher as investors digest this
morning's news that Roche's (OTC:RHHBY) former Head of Global Pharmaceuticals
has joined AstraZeneca (NYSE:AZN) as CEO. Investors expect AMRN to be acquired
for its recently approved triglyceride-lowering therapy, Vascepa, and the most
logical suitor is AZN. This is primarily because AZN markets its blockbuster
cholesterol-lowering agent, Crestor, offering significant cost savings if it can
sell Vascepa and Crestor together through the same sales force. AZN's new CEO,
Pascal Soriot, stated that he is charged with growing the European pharma
company via innovation and acquisition, and with Crestor patent-protected
through late 2016, leveraging the company's investment in major cardiovascular
markets makes sense. All eyes remain on upcoming news on whether or not Vascepa
will receive NCE status from the FDA (see PropThink's article last week).
Nevertheless, with an average price target by Wall Street analysts of $25, AMRN
could have a nice bounce today on the AZN news.
In addition to AMRN, Synergy Pharmaceuticals (NASDAQ:SGYP) is another stock that
could move higher on today's announcement from AZN. SGYP is rumored to have
spoken to several major pharmaceutical companies on partnering plecanatide,
Synergy's development-stage treatment for irritable bowel syndrome with
constipation (IBS-C). Key clinical data on plecanatide is anticipated before
year-end. AZN is likely one of the companies that spoke with SGYP as a potential
partner for the drug, before the last CEO stepped down. AZN has the world's
largest gastrointestinal (GI) drug franchise with its Nexium product, so a deal
with SGYP in this therapeutic area makes sense. As a result, the new
acquisition-driven CEO at AZN might revive any partnering talks, fueling
potential upside in SGYP. Once the new AZN chief has fleshed out his strategy,
he will likely communicate to analysts and investors which therapeutic areas
will be a focus for the company going forward, which could lead to more trading
opportunities for companies like AMRN and SGYP. Expect these two stocks to trade
up today as investors and analysts interpret the AZN news.
To see this article at PropThink.com, click here.
About PropThink
PropThink is an intelligence service that delivers long and short trading ideas
to investors in the healthcare and life sciences sectors. Our focus is on
identifying and analyzing technically-complicated companies and equities that
are grossly over or under-valued. We offer daily market coverage, weekly feature
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more visit us at http://www.propthink.com.
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Source: PropThink via Thomson Reuters ONE
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Unternehmensinformation / Kurzprofil:
Datum: 28.08.2012 - 16:20 Uhr
Sprache: Deutsch
News-ID 178344
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contact information:
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New York
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Business News
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