Allergan may be more effective in its defense against a hostile takeover bid by Valeant Pharmaceuticals if it makes a purchase of its own, an analyst says.» Read More
April 24- Zimmer Holdings Inc said on Thursday it would buy rival orthopedic products maker Biomet Inc for more than $13 billion, the latest deal in a wave of consolidations in the healthcare industry. The deal is expected to take Zimmer from the fourth-largest seller of orthopedics products to No. 2, behind Johnson& Johnson.
Happy Wednesday and welcome to the Morning Six-Pack, where we're always trying to beat analyst estimates and surprise to the upside.
Bill Ackman also tells CNBC that Allergan's poison-pill defense doesn't make his takeover bid more difficult.
The bull market is seeing the equivalent of its first gray hairs and the proof is in Tuesday's blast of merger activity.
Drugmakers eager to satisfy shareholders are wheeling, dealing, and in one case even making trades like a pro sports team looking to shake up its roster.
TOKYO— Shares were mixed in Asia on Wednesday, as weak data from China sapped upward momentum from an overnight rally on a flurry of deals in the pharmaceutical sector. Overnight, U.S. financial data and corporate earnings helped spur gains from deals by Switzerland's Novartis with Britain's GlaxoSmithKline PLC and the Eli Lilly& Co. of the U.S.
Swiss drugmaker Novartis AG on Tuesday said it's trading its vaccine business for GlaxoSmithKline Plc's cancer drug business and selling its veterinary drug business to Eli Lilly and Co. Meanwhile, Canadian drugmaker Valeant Pharmaceuticals International Inc. said it teamed up with activist investor Bill Ackman in a bid for Botox maker Allergan that could be worth about $45 billion.
Considering Cramer is a big fan of M&A, why is he so opposed to the Allergan takeover?
The stock market logged its sixth straight day of gains on Tuesday. Netflix and Harley-Davidson both jumped after reporting earnings that beat analysts' expectations. Allergan, which makes Botox, jumped after Valeant Pharmaceuticals and activist investor Bill Ackman disclosed that they are trying to buy the company.
NEW YORK— Stocks that moved substantially or traded heavily Tuesday on the New York Stock Exchange and the Nasdaq Stock Market:. Harley-Davidson Inc., up $4.33 to $71.87. The Interpublic Group of Cos. Inc., up 49 cents to $17.36.
*Netflix up after results; Facebook gains on upgrade. Netflix Inc surged 7 percent to $372.90 a day after showing strong subscriber growth, a sign the trading favorite still had room to grow despite recent concerns over its valuation.
U.S. stocks rose on Tuesday after earnings from McDonald's and Netflix.
Virtually every Pershing Square Capital investment appears to have made money this year.
More than half the revenue from Botox comes from therapeutic, not cosmetic, use. And its potential is helping to make Allergan an attractive target.
*Netflix up after results, Facebook gains on upgrade. Healthcare, up 1.5 percent, was the best performing of the 10 major S&P sectors, as Allergan Inc jumped 15.8 percent to $164.48 a day after activist investor William Ackman teamed up with Canadian drugmaker Valeant Pharmaceuticals International Inc to bid for the company.
One astute trader picked up big money overnight by buying options in Furiex Pharmaceuticals.
Some of Tuesday's midday movers:
*Netflix up after results, Facebook gains on update. Dow components Travelers Cos Inc and United Technologies Corp both reported first-quarter earnings that beat expectations, and United Tech raised the low end of its full-year profit outlook. Shares of Travelers rose 0.2 percent to $86.58 while United Tech was up 1.2 percent at $119.69.
European shares closed higher on Tuesday, starting a shortened trading week on a positive note.
One of Valeant's top shareholders on Tuesday threw his support behind its proposed takeover bid for Botox-maker Allergan.