Amylin Perks Up on Rejection — Wednesday’s IP Market Recap

by Kyle Woodley | March 28, 2012 5:04 pm

IPMarketRecap Amylin Perks Up on Rejection    Wednesday's IP Market Recap[1]Pharmaceutical M&A news made for one of the most interesting market moves of the day, leaving a group of investors with about 50% more money than they carried into Wednesday’s trading.

Amylin Pharmaceuticals (NASDAQ:AMLN[2]) shot up by 54% Wednesday on reports that it rejected a $3.5 billion takeover bid from Bristol-Myers Squibb (NYSE:BMY[3]) earlier this year.

A Deutsche Bank analyst says Amylin’s diabetes drug Bydureon, which recently received regulatory approval, “could be worth up to $1.5 billion in peak annual sales,” according to a Bloomberg report[4], and says AMLN shares could be worth up to $31. The proposed deal from Bristol-Myers was thought to be $22 per share; AMLN finished Wednesday’s trading at $23.81.

A Leerink Swann analyst thinks potential future suitors could include AstraZeneca (NYSE:AZN[5]) and French pharma outfit Sanofi (NYSE:SNY[6]), according to the report.

Homebuilder KB Home (NYSE:KBH[7]) continued a weeks-long freefall in which it has seen shares lose almost 30% of their value. KBH dropped about 3% to $9.29 on Wednesday, possibly brought on by continued worry about KB Home’s first-quarter earnings report, in which the company recorded an almost $46 million (59 cents per share) loss, far worse than expectations for a 34-cent loss. KBH also saw an 8% drop in orders for the period.

And although the big headline of the day was the national price for gas heading up to $3.90 per gallon, several energy stocks weren’t up for the climb. Chesapeake Energy (NYSE:CHK[8]) was down 4.1%, Occidental Petroleum (NYSE:OXY[9]) shed 3.6% and HollyFrontier (NYSE:HFC[10]) lost about 3.5%, among others.

A few companies also made their public-trading debuts, including Vocera Communications (NYSE:VCRA[11], more here[12]) and organic food brand Annie’s (NYSE:BNNY[13], more here[14]).

Three Up

Three Down

Kyle Woodley[22] is the assistant editor of InvestorPlace.com[23]. As of this writing, he did not hold a position in any of the aforementioned securities. Check out recaps from previous trading days here[24].

Endnotes:
  1. [Image]: http://investorplace.com/hot-topics/investorplace-market-recap/
  2. AMLN: http://studio-5.financialcontent.com/investplace/quote?Symbol=AMLN
  3. BMY: http://studio-5.financialcontent.com/investplace/quote?Symbol=BMY
  4. report: http://www.bloomberg.com/news/2012-03-28/mylin-said-to-have-spurned-3-5-billion-bristol-myers-bid.html
  5. AZN: http://studio-5.financialcontent.com/investplace/quote?Symbol=AZN
  6. SNY: http://studio-5.financialcontent.com/investplace/quote?Symbol=SNY
  7. KBH: http://studio-5.financialcontent.com/investplace/quote?Symbol=KBH
  8. CHK: http://studio-5.financialcontent.com/investplace/quote?Symbol=CHK
  9. OXY: http://studio-5.financialcontent.com/investplace/quote?Symbol=OXY
  10. HFC: http://studio-5.financialcontent.com/investplace/quote?Symbol=HFC
  11. VCRA: http://studio-5.financialcontent.com/investplace/quote?Symbol=VCRA
  12. more here: http://investorplace.com/ipo-playbook/voceras-ipo-goes-mobile/
  13. BNNY: http://studio-5.financialcontent.com/investplace/quote?Symbol=BNNY
  14. more here: http://investorplace.com/ipo-playbook/annies-ipo-surges-on-first-day/
  15. CZR: http://studio-5.financialcontent.com/investplace/quote?Symbol=CZR
  16. PHM: http://studio-5.financialcontent.com/investplace/quote?Symbol=PHM
  17. UAL: http://studio-5.financialcontent.com/investplace/quote?Symbol=UAL
  18. AFFY: http://studio-5.financialcontent.com/investplace/quote?Symbol=AFFY
  19. SHLD: http://studio-5.financialcontent.com/investplace/quote?Symbol=SHLD
  20. Read more about Sears here: http://investorplace.com/2012/03/are-these-3-comeback-stocks-for-real/
  21. ZNGA: http://studio-5.financialcontent.com/investplace/quote?Symbol=ZNGA
  22. Kyle Woodley: http://investorplace.com/author/kyle-woodley/
  23. InvestorPlace.com: http://investorplace.com/
  24. here: http://investorplace.com/hot-topics/investorplace-market-recap/

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