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

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

InvestorPlace 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[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].

  1. [Image]:
  2. AMLN:
  3. BMY:
  4. report:
  5. AZN:
  6. SNY:
  7. KBH:
  8. CHK:
  9. OXY:
  10. HFC:
  11. VCRA:
  12. more here:
  13. BNNY:
  14. more here:
  15. CZR:
  16. PHM:
  17. UAL:
  18. AFFY:
  19. SHLD:
  20. Read more about Sears here:
  21. ZNGA:
  22. Kyle Woodley:
  24. here:

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