Cramer’s Favorite Big Pharma Catch-Up Play

Here's why Cramer is bullish on Merck:

The company is finally over the patent cliff and on solid ground. "Right now, going forward, of all the big pharma companies Merck has the least exposure to drugs losing patent protection and going generic. That's huge," said Cramer.

Merck has a broad portfolio of products. "That includes a decent-sized animal health business that they could spin-off," Cramer said. "They also have a big and rapidly growing diabetes business and a vaccine division that's also growing fast."

Merck has an incredibly deep pipeline. "Merck has 35 drug candidates in phase 2 or phase 3 development—that's the second most of any pharmaceutical company out there," Cramer said. "Within their late-stage pipeline, the company has 16 phase 3 programs, the last phase before a drug can come up for FDA approval. And of those 16, there are five drugs that could be approved this year."

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What's the bottom line?

As drugs such as Merck's new ragweed allergy medication or its ovarian cancer drug get FDA approval, Cramer thinks Merck will come back into favor with the Street – not only will investors see new profit potential but they'll also be drawn by the 3.75% yield.

And as that happens, Cramer anticipates something called a reversion to the mean trade. That is, Cramer thinks this laggard will play a big game of catch-up as the Street assigns Merck a similar premium to its big pharma brethren.

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Valeant Pharma boosts offer for Obagi to $418M

LONG BEACH, Calif. -- Obagi Medical Products Inc. said Wednesday that Canadian drugmaker Valeant Pharmaceuticals boosted its offer to buy the dermatology products maker, topping a bid made a day ago by a German rival.

Obagi said it struck a deal with Valeant Pharmaceuticals International Inc. that calls for it to pay $24 per share, or a total of about $418.3 million, for the company. The news sent Obagi shares up 10 percent in morning trading.

Obagi said its board has approved the deal and is recommending that stockholders tender their shares in Valeant's offer, which is set to expire on April 23. A spokeswoman for Merz didn't immediately return a call for comment.

The sweetened offer came a day after German drugmaker Merz Pharma Group offered to buy Obagi for $22 per share, or about $383.5 million.

Late last month, Valeant agreed to pay $19.75 per share, or a total of about $343.7 million, for Obagi. Merz said Tuesday that it had been in private talks with Obagi before that deal was announced and wasn't aware that it was considering signing a deal with another company so quickly.

Long Beach, Calif.-based Obagi makes skin anesthetics as well as prescription and over-the-counter treatments for wrinkles, acne, sun damage and other skin problems. It posted sales of $120 million last year.

In morning trading, Obagi shares rose $2.19, or 10 percent, to $25.07, while Valeant's U.S. shares edged up 71 cents to $76.08.

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Cramer's Diagnosis on Two Pharma Plays

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ANALYSIS-Big Pharma down, not out, after Indian patent blow

* Glivec patent decision may deter new drug launches

* Western firms seen striking deals with local companies

* India forecast to be No.8 drug market worldwide by 2016

LONDON/MUMBAI, April 2 (Reuters) - Stung by a landmark patent defeat, Western drugmakers will be wary about launching new products in India, but they cannot afford to quit a country tipped to be the world's eighth largest market for medicines by 2016.

Makers of patented drugs will in future have to get more creative about doing business in India, including striking deals with local firms to sell cheaper versions of their drugs, industry experts believe.

The decision by India's Supreme Court on Monday not to allow a patent on Novartis AG's cancer drug Glivec angered but did not surprise U.S. and European drug companies, given past intellectual property (IP) setbacks.

And it is unlikely to send them rushing for the exit.

"India is too big to ignore," said Amit Backliwal, who heads South Asian operations for leading healthcare information provider IMS Health.

"Companies will definitely get cautious, and it definitely means a change in their business model, but I don't think they will pull out."

On paper, there is huge potential in India's rapidly growing $13 billion-a-year drugs market, which is driven these days by chronic diseases such as diabetes as well as infections.

So far, though, it has failed to become a money-spinner for the world's top pharmaceutical companies, despite a new law in 2005 allowing drug patents for the first time.

Innovative patented drugs make up no more than 5 percent of sales, according to IMS, and they have been under siege after a series of rulings allowing generics firms to over-ride patents for cancer drugs like Bayer AG's Nexavar.

New Delhi has pulled no punches in its fight with Big Pharma, both by raising the bar for patents and being ready to issue so-called compulsory licences that open the door for cheap generics when patented drugs are deemed unaffordable.

In the face of such hurdles, some companies are already building new business models.

Roche Holding, for example, plans to offer cut-price versions of two blockbuster cancer drugs Herceptin and MabThera under an alliance with Indian generics firm Emcure Pharmaceuticals.

It is a scheme that Ajay Kumar Sharma, associate director of the pharmaceutical and biotech practice at business consultancy Frost & Sullivan, believes other drugmakers could now emulate.

CALCULATED RISK

India's stance on IP has long been a thorn in the side of Western business, prompting calls by Pfizer Inc and other U.S. firms last month for more pressure on the country to reform policies that can block U.S. exports.

The argument cuts little ice in India, where officials see differential pricing - steep discounts for less well-off markets - as an obvious option for Western companies.

"It is up to them to decide on India. Don't forget, India is a large market, a country of 1.2 billion," said Raghunath Mashelkar, former director general of the Council for Scientific and Industrial Research and an architect of India's IP policies.

With differential pricing common in industries from autos to mobile phones, he argues pharmaceutical firms must find new ways to make products affordable for lower-income groups.

"Drugmakers will have to work out strategies for the lower sections, to give affordable access to medicines and make money by large volumes and smaller margins," he told Reuters. "And then they will look at the middle and the upper sections and make money through smaller volumes but higher margins."

It is a calculated risk, yet a number of drugmakers are already coming around to the view that trading volume for price is the way forward.

One of those is GlaxoSmithKline Plc, which has a large footprint in India and has just invested $900 million to raise its stake in its consumer healthcare subsidiary.

GSK's diversified approach to healthcare is shared by a number of rivals, including Novartis, that also have big interests in over-the-counter (OTC) remedies and branded generics, in addition to innovative medicines.

It is this non-prescription sector that is set to dominate in India, driving double-digit percentage growth in a market that IMS has forecast will reach $24-34 billion by 2016, vaulting the country to eighth from 14th in the global league table.

PricewaterhouseCoopers puts sales by 2020 at $49 billion.

Much of the new business will still come from cheap generics made by local companies, but Western firms are also seeking to put their brands on unpatented medicines, prompting the likes of Abbott Laboratories and Daiichi Sankyo Co Ltd to buy up Indian companies.

BETTER BETS ELSEWHERE

With sales of patented drugs in Western countries slowing, emerging markets are a vital growth driver for drugmakers. India cannot be ignored, but there are clearly better bets elsewhere.

"Emerging markets are growing at two to three times the rate of Western markets, but you've got to be in the right markets - you want to be in China and in Brazil," said Tim Race at Deutsche Bank.

"India could be a really exciting market, given its increasing middle class, but the home-grown generics industry is extremely strong, and the patent situation is very difficult."

India's patent stance also reverberates beyond its shores, since the country's generics firms export their cheap medicines across the developing world.

So far, no other country has followed India with similar laws preventing the kind of secondary patent that stymied Glivec, though Michelle Childs, head of drug access policy at Medecins Sans Frontieres, said others were raising the patent bar in more subtle ways.

Argentina, for example, recently issued guidelines to patent examiners urging stricter rules for granting new patents, and other countries have used compulsory licences, she noted.

"It's putting pressure on pharmaceutical companies to realise they can't continue to charge prices which are unaffordable to the majority of people," Childs said.

(Additional reporting by Caroline Copley in Zurich; Editing by Will Waterman)

View the original article here

Big Pharma in nervous wait for India verdict on Glivec patent

MUMBAI, March 27 (Reuters) - Global drugmakers, battered by recent intellectual property decisions in India, are girding for a landmark court ruling next week that could have broad consequences for their ability to sell lucrative patented medicines in the country.

India's Supreme Court is due to decide on April 1 whether or not an amended form of Swiss giant Novartis AG's cancer treatment Glivec deserves a patent in the country.

"Big Pharma is nervous because nothing has gone in their favour in the recent past," said Ajay Kumar Sharma, associate director of the pharmaceutical and biotech practice at business consultancy Frost & Sullivan.

"With this verdict, at least, things will get clearer about what is the definition of patented medicines."

Novartis has been fighting since 2006 to win a patent for an amended form of Glivec, which many oncologists view as a major advance in treating chronic myeloid leukaemia, which kills 80-90 percent of sufferers, and some gastrointestinal cancers.

India has refused protection for Glivec on the grounds that it is not a new medicine but an amended version of a known compound - a decision consistent with domestic patent law which sets tight restrictions on multiple patents for a drug.

By contrast, in the United States, amended versions can be patented.

Novartis is seeking to overturn a clause in Indian Patents Law that restricts patent protection for newer forms of existing molecules, and next week's ruling could set a precedent for how other similar patent claims are treated.

"India is a formidable world power with international rights and obligations," Ranjit Shahani, vice chairman and managing director of Novartis India Ltd, the firm's India unit, said in an email to Reuters.

"Novartis understands and recognizes the contribution of generics once drug patents expire; our concern is with the non-recognition of intellectual property rights that ultimately help sustain and advance pharmaceutical research and development."

PROMISE AND PERIL

While Western firms see huge potential in India's rapidly growing $13 billion drugs market, 90 percent of which is made up of generics, they worry that India is failing to recognise valuable medical innovation.

Among Big Pharma's setbacks in the country, India last year allowed local drugmaker Natco Pharma to sell cheaper copies of Bayer AG's cancer drug Nexavar through the controversial mechanism of "compulsory licensing".

A global agreement, known as Trade-Related Aspects of Intellectual Property Rights or TRIPS, allows countries to issue compulsory licences for certain drugs that are deemed unaffordable to large sections of their populations.

Also last year, India revoked patents granted to Pfizer Inc's cancer drug Sutent, Roche Holding AG's hepatitis C drug Pegasys, and Merck & Co's asthma treatment aerosol suspension formulation. They were all revoked on grounds that included lack of innovation.

In another potential hit, Mumbai-based BDR Pharmaceutical International this month applied for a compulsory licence on a blood cancer drug, dasatinib, sold as Sprycel by U.S.-based Bristol-Myers Squibb Co.

Last month, an Indian government panel proposed that prices of patented medicines be based on the country's per capita income, a move that would substantially reduce prices of costly drugs made by global pharmaceutical firms.

"In the minds of global drugmakers, the recent developments will definitely hamper India's image," said lawyer Dominic Alvares, of S. Majumdar & Co which represents Indian drugmakers.

But he said social justice and the public interest should come ahead of India's reputation as a future drugs market. "The developments would impact reputation but for the sake of reputation, do you sacrifice on public interest?"

PATENTS VS AFFORDABILITY

In almost every patent dispute, India has held affordability as a key reason to allow generic drugmakers to launch copycat versions of patented medicines in a country where nearly 40 percent of the population lives on less than $1.25 a day.

For example, Natco Pharma was told by the patents office in its compulsory licence ruling to offer generic Nexavar at 8,800 rupees ($162) for a month's dose - a fraction of Bayer's price of 280,000 rupees. Natco must pay a 7 percent royalty to Bayer.

BDR Pharma, in its application, has offered generic Sprycel at 8,100 rupees for a month's dose compared with Bristol-Myers' price of 165,000 rupees.

Generic versions of Glivec, which won its first patent in 1993, cost about $2,500 for a year's dosage in India, compared with nearly $70,000 in the United States where only the branded version is sold.

Discount programmes mean the branded version is available for much less in poor countries. In India, more than 95 percent of patients using branded Glivec receive it free under a company donation scheme, Novartis has said.

U.S. industry groups this month demanded that the United States increase pressure on India to reform high-tech, agricultural and pharmaceutical policies they said blocked export access and damaged patent rights.

"India has essentially created a protectionist regime that harms U.S. job creators" in favour of India's generic drug manufacturers, Roy Waldron, chief intellectual property counsel for Pfizer, said in testimony to a U.S. House panel.

India's $25 billion drugs industry, a major exporter of generics, is growing at 16 to 17 percent a year.

"You can expect more muscle-flexing from the respective countries of the big pharmaceutical companies in the future," Frost & Sullivan's Sharma said.

View the original article here

Big Pharma in nervous wait for India verdict on Glivec patent

MUMBAI, March 27 (Reuters) - Global drugmakers, battered by recent intellectual property decisions in India, are girding for a landmark court ruling next week that could have broad consequences for their ability to sell lucrative patented medicines in the country.

India's Supreme Court is due to decide on April 1 whether or not an amended form of Swiss giant Novartis AG's cancer treatment Glivec deserves a patent in the country.

"Big Pharma is nervous because nothing has gone in their favour in the recent past," said Ajay Kumar Sharma, associate director of the pharmaceutical and biotech practice at business consultancy Frost & Sullivan.

"With this verdict, at least, things will get clearer about what is the definition of patented medicines."

Novartis has been fighting since 2006 to win a patent for an amended form of Glivec, which many oncologists view as a major advance in treating chronic myeloid leukaemia, which kills 80-90 percent of sufferers, and some gastrointestinal cancers.

India has refused protection for Glivec on the grounds that it is not a new medicine but an amended version of a known compound - a decision consistent with domestic patent law which sets tight restrictions on multiple patents for a drug.

By contrast, in the United States, amended versions can be patented.

Novartis is seeking to overturn a clause in Indian Patents Law that restricts patent protection for newer forms of existing molecules, and next week's ruling could set a precedent for how other similar patent claims are treated.

"India is a formidable world power with international rights and obligations," Ranjit Shahani, vice chairman and managing director of Novartis India Ltd, the firm's India unit, said in an email to Reuters.

"Novartis understands and recognizes the contribution of generics once drug patents expire; our concern is with the non-recognition of intellectual property rights that ultimately help sustain and advance pharmaceutical research and development."

PROMISE AND PERIL

While Western firms see huge potential in India's rapidly growing $13 billion drugs market, 90 percent of which is made up of generics, they worry that India is failing to recognise valuable medical innovation.

Among Big Pharma's setbacks in the country, India last year allowed local drugmaker Natco Pharma to sell cheaper copies of Bayer AG's cancer drug Nexavar through the controversial mechanism of "compulsory licensing".

A global agreement, known as Trade-Related Aspects of Intellectual Property Rights or TRIPS, allows countries to issue compulsory licences for certain drugs that are deemed unaffordable to large sections of their populations.

Also last year, India revoked patents granted to Pfizer Inc's cancer drug Sutent, Roche Holding AG's hepatitis C drug Pegasys, and Merck & Co's asthma treatment aerosol suspension formulation. They were all revoked on grounds that included lack of innovation.

In another potential hit, Mumbai-based BDR Pharmaceutical International this month applied for a compulsory licence on a blood cancer drug, dasatinib, sold as Sprycel by U.S.-based Bristol-Myers Squibb Co.

Last month, an Indian government panel proposed that prices of patented medicines be based on the country's per capita income, a move that would substantially reduce prices of costly drugs made by global pharmaceutical firms.

"In the minds of global drugmakers, the recent developments will definitely hamper India's image," said lawyer Dominic Alvares, of S. Majumdar & Co which represents Indian drugmakers.

But he said social justice and the public interest should come ahead of India's reputation as a future drugs market. "The developments would impact reputation but for the sake of reputation, do you sacrifice on public interest?"

PATENTS VS AFFORDABILITY

In almost every patent dispute, India has held affordability as a key reason to allow generic drugmakers to launch copycat versions of patented medicines in a country where nearly 40 percent of the population lives on less than $1.25 a day.

For example, Natco Pharma was told by the patents office in its compulsory licence ruling to offer generic Nexavar at 8,800 rupees ($162) for a month's dose - a fraction of Bayer's price of 280,000 rupees. Natco must pay a 7 percent royalty to Bayer.

BDR Pharma, in its application, has offered generic Sprycel at 8,100 rupees for a month's dose compared with Bristol-Myers' price of 165,000 rupees.

Generic versions of Glivec, which won its first patent in 1993, cost about $2,500 for a year's dosage in India, compared with nearly $70,000 in the United States where only the branded version is sold.

Discount programmes mean the branded version is available for much less in poor countries. In India, more than 95 percent of patients using branded Glivec receive it free under a company donation scheme, Novartis has said.

U.S. industry groups this month demanded that the United States increase pressure on India to reform high-tech, agricultural and pharmaceutical policies they said blocked export access and damaged patent rights.

"India has essentially created a protectionist regime that harms U.S. job creators" in favour of India's generic drug manufacturers, Roy Waldron, chief intellectual property counsel for Pfizer, said in testimony to a U.S. House panel.

India's $25 billion drugs industry, a major exporter of generics, is growing at 16 to 17 percent a year.

"You can expect more muscle-flexing from the respective countries of the big pharmaceutical companies in the future," Frost & Sullivan's Sharma said.

View the original article here

Idenix Pharma shares sink on patent decision

CAMBRIDGE, Mass. -- Idenix Pharmaceuticals Inc. shares sank Monday after the U.S. Patent and Trademark Office determined a competitor was the first to request a patent for a hepatitis therapy.

The biopharmaceutical company said an appeals board decided that Idenix's patent application for compounds used to treat hepatitis C was filed after Gilead Pharmasset LLC's application. The U.S. Patent and Trademark Office appeals board will next determine which company invented the product first.

Idenix said that it does not believe that the patent application is relevant to any of the compounds it is currently developing, including two that are expected to begin midstage studies within the next few months, or another compound for which it soon plans to file a new drug application.

The news sent shares of Cambridge, Mass.-based Idenix down more than 15 percent to $3.89 by early afternoon, its lowest level in months. The company's stock is approaching the bottom of its 52-week trading range of $3.35 to $11.30.

Hepatitis C is a virus that can lead to life-threatening liver damage and is the main cause of liver transplants in the U.S. The disease is spread through the blood, which can happen through sharing intravenous drug needles or having sex with an infected person. There are around 3 million Americans with the disease, which can go undetected for many years until the liver is severely damaged.

Shares of Gilead Sciences Inc. fell 65 cents to $44.86.

View the original article here

UPDATE 2-BDR Pharma seeks India licence for Bristol-Myers drug

* BDR Pharma seeks compulsory licence on cancer drug dasatinib

* Company offers to sell drug at 8,100 rupees/month

(Recasts, adds Bristol comment)

By Kaustubh Kulkarni

MUMBAI, March 18 (Reuters) - BDR Pharmaceuticals said on Monday it has applied to India's patent office for a compulsory licence to sell a generic version of Bristol-Myers Squibb Co's

cancer drug dasatinib, after unsuccessfully seeking a voluntary licence from Bristol-Myers.

Under a global Trade-Related Aspects of Intellectual Property Rights agreement, countries can issue compulsory licences for certain drugs that are deemed unaffordable to a large section of their populations.

If approved, a compulsory licence for dasatinib, a blood cancer drug, would be another setback for global drugmakers in India. German company Bayer AG lost an appeal earlier this month challenging the first such Indian license, which was granted to Natco Pharma for cancer drug Nexavar.

Dasatinib is sold as Sprycel by U.S.-based Bristol-Myers Squibb and costs about 165,000 rupees ($3,050) for a month's treatment in India.

BDR Pharma filed its application seeking a compulsory licence on March 4 and has offered to sell the drug at 8,100 rupees for a month's dose, Aravind Badiger, technical director at BDR, an Indian pharmaceuticals company, said.

"We expect the patent office to respond at the earliest," he said in an email response to a Reuters query.

BDR had unsuccessfully sought a voluntary licence from Bristol-Myers to sell a copycat version of the drug, Badiger said.

Bristol-Myers Squibb said in a statement that it does not comment on ongoing proceedings. The company said it "has and will continue to pursue all appropriate avenues to protect its intellectual property rights in India."

It said Sprycel is protected by a composition of matter patent from the Indian Patent Office.

Natco Pharma already sells a generic version of dasatinib in India, which is the subject of a legal battle with Bristol-Myers Squibb.

Generic drugs account for about 90 percent of India's $13 billion drug market. While India holds promise for global drugmakers facing slower growth in developed markets, big pharmaceutical companies have lost several rulings on intellectual property rights in recent years.

Among those setbacks, India revoked patents granted to Pfizer Inc's cancer drug Sutent, Roche Holding AG's

hepatitis C drug Pegasys, and Merck & Co's asthma treatment aerosol suspension formulation. ($1 = 54.17 Indian rupees)

(Additional reporting by Caroline Humer in New York; Editing by Tony Munroe, Charlotte Cooper and Leslie Adler)

((kaustubh.kulkarni@thomsonreuters.com)(+91 22 61807399)(Reuters Messaging: kaustubh.kulkarni.thomsonreuters.com@reuters.net))

Keywords: INDIA BDRPHARMA/DRUG

View the original article here

UPDATE 1-BDR Pharma seeks India licence for Bristol-Myers drug

* India's BDR Pharma seeks compulsory licence on cancer drug dasatinib

* BDR Pharma offers to sell generic dasatinib at 8,100 rupees/month

(Adds details, quote) By Kaustubh Kulkarni

MUMBAI, March 18 (Reuters) - BDR Pharmaceuticals has applied to India's patent office for a compulsory licence to sell a generic version of Bristol-Myers Squibb Co's cancer drug dasatinib, a BDR executive said on Monday.

Under a global Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement, countries can issue compulsory licences for certain drugs that are deemed unaffordable to a large section of their populations.

If approved, the compulsory licence would be another setback for global drugmakers in India. German firm Bayer AG lost an appeal earlier this month challenging the first such Indian licence, which was granted to Natco Pharma on cancer drug Nexavar.

Dasatinib is a blood cancer drug sold as Sprycel by Bristol-Myers Squibb and costs about 165,000 rupees ($3,050) for a month's treatment in India.

India's BDR Pharmaceuticals had unsuccessfully sought a voluntary licence from Bristol-Myers Squibb to sell a copycat version, Aravind Badiger, technical director at the Indian firm,

said in an emailed response to a Reuters' query.

Officials at U.S.-based Bristol-Myers Squibb could not immediately be reached by Reuters for comment.

BDR Pharma filed its application seeking a compulsory licence on March 4 and has offered to sell the drug at 8,100 rupees for a month's dose, Badiger said.

"We expect the patent office to respond at the earliest," he said in the email.

Natco Pharma already sells a generic version of dasatinib in India, which is the subject of a legal battle with Bristol-Myers Squibb.

Generic drugs account for about 90 percent of India's $13 billion drug market. While India holds promise for global drugmakers facing slower growth in developed markets, big pharmaceutical firms have lost several rulings on intellectual property rights in recent years.

Among those setbacks, India revoked patents granted to Pfizer Inc's cancer drug Sutent, Roche Holding AG's

hepatitis C drug Pegasys and Merck & Co's asthma treatment aerosol suspension formulation. ($1 = 54.17 Indian rupees)

(Editing by Tony Munroe and Charlotte Cooper)

((kaustubh.kulkarni@thomsonreuters.com)(+91 22 61807399)(Reuters Messaging: kaustubh.kulkarni.thomsonreuters.com@reuters.net))

Keywords: INDIA BDRPHARMA/DRUG

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Antares Pharma 4Q loss swells on Otrexup costs

EWING, N.J. -- Antares Pharma Inc.'s fourth-quarter loss swelled as the drug developer spent heavily to prepare its potential rheumatoid arthritis treatment Otrexup for regulatory review.

The Ewing, N.J., company said Wednesday it lost $5 million, or 4 cents per share, in the three months that ended Dec. 31. That compares to a loss of $154,000, or less than 1 cent per share, in the final quarter of 2011, when it had fewer shares outstanding. Revenue climbed about 1 percent to $5.5 million.

Analysts expected, on average, a loss of 3 cents per share on $5.3 million in revenue, according to FactSet.

Antares makes self-injectable drugs. Otrexup combines the company's Medi-Jet drug delivery system, which allows patients to inject a drug, and methotrexate, a commonly prescribed treatment for rheumatoid arthritis.

The company's operating expenses more than doubled to $8.8 million in the quarter. That included a $2 million filing fee the company paid in connection with the new drug application it submitted to the Food and Drug Administration.

Antares has said the FDA intends to complete its review and make a decision on whether to approve the treatment by Oct. 14.

For the full year, Antares lost $11.4 million, or 10 cents per share, on $22.6 million in revenue.

The company said it ended the year with $85.2 million in cash and investments and no debt.

Shares of Antares fell 12 cents to $3.48 Wednesday afternoon, while broader trading indexes edged higher.

View the original article here

Peregrine Pharma reports smaller 3Q loss

TUSTIN, Calif. -- Drug developer Peregrine Pharmaceuticals Inc. said Tuesday it took a smaller loss in the fiscal third quarter as it received more revenue and spent less on clinical trials.

Peregrine said its revenue more than doubled and its research and development costs fell by about 40 percent. The company does not have any approved products. Its most advanced drug candidate is bavituximab, a potential treatment for non-small cell lung cancer.

The company lost $4.9 million, or 4 cents per share, over the three months ended Jan. 31. A year earlier it took a loss of $11.1 million, or 13 cents per share. Revenue grew to $7 million from $3.3 million over the three months ended Jan. 31.

Analysts forecast a loss of 7 cents per share on $4.1 million in revenue, according to FactSet.

In September Peregrine said patients who were treated with bavituximab lived twice as long as patients who received only chemotherapy in a clinical trial, and its shares rose to a three-year high. In February the company revised its report, saying the bavituximab patients lived only 60 percent longer. Peregrine said the problem appeared to be tied to another company that was contracted to code and distribute the product.

The company is preparing to meet with Food and Drug Administration and hopes to begin a late-stage trial of bavituximab by year-end.

Shares of Peregrine Pharmaceuticals fell 4 cents to $1.58 Tuesday. In after-hours trading the shares gained 5 percent, or 8 cents, to $1.66.

View the original article here

Royalty Pharma says ready to move quickly on Elan offer

March 6 (Reuters) - U.S. investment firm Royalty Pharma

stood by its offer on Wednesday to acquire Irish drugmaker Elan , which has rejected the approach, saying it was ready to move quickly and that it could complete due diligence in 20 days.

It also said it was meeting with Elan shareholders.

Royalty Pharma made a $6.6 billion approach last week after Elan announced last month a $3.2 billion plan to sell its 50 percent stake in multiple sclerosis drug Tysabri to its U.S. partner Biogen Idec .

Elan rejected Royalty Pharma and on Monday sweetened its offer to shareholders, saying that it would give them 20 percent of future royalties from the drug. It had already planned to return $1 billion to shareholders after the drug sale.

(Reporting By Caroline Humer; Editing by Maureen Bavdek)

((caroline.humer@thomsonreuters.com)(+1 646 223 6181)(Reuters Messaging: caroline.humer.reuters.com@reuters.net))

Keywords: ROYALTYPHARMA ELAN/

View the original article here

UPDATE 5-Royalty Pharma says ready to move quickly on Elan offer

* Royalty Pharma hopes to meet with Elan shareholder J&J

* Royalty Pharma first approached Elan last year

(Adds Elan shareholder comments)

By Jessica Toonkel March 6 (Reuters) - U.S. investment firm Royalty Pharma

on Wednesday stood by its offer to acquire Irish drugmaker Elan , which has rejected the approach, and said it was ready to move quickly and could complete due diligence within 20 days.

The firm is scheduling meetings with 10 to 15 of Elan's largest shareholders, including Johnson & Johnson , as well as a few smaller investors, over the next several days, Pablo Legorreta, chief executive of Royalty Pharma, told Reuters. The firm is meeting with nearly a dozen shareholders this week alone, with the first talks taking place on Wednesday.

"We are very confident that our offer gives Elan shareholders a very attractive alternative," Legorreta said. "We really need access to the books to do due diligence."

Royalty Pharma made a $6.6 billion approach last week after Elan announced last month a $3.2 billion plan to sell its 50 percent stake in multiple sclerosis drug Tysabri to its U.S. partner, Biogen Idec .

Elan rejected Royalty Pharma and on Monday sweetened its offer to its shareholders, saying it would give them 20 percent of future royalties from Tysabri. It had already planned to return $1 billion to shareholders after the drug sale.

"The 'proposal' by Royalty Pharma remains an indication of interest, is highly conditional, and may or may not lead to an offer being made for the entire issued share capital of the company," Elan said in a written statement on Wednesday. "The highly conditional indication of interest is opportunistic in its timing."

Royalty criticized Elan for not taking its bid to Elan shareholders. It also criticized Elan's sweetened offer to shareholders.

Given the competitive M&A landscape in the sector, Elan's lack of experience in making acquisitions, and the fact that without existing products there are no synergies for Elan to realize through acquisitions, Royalty Pharma believes Elan will have a tough time growing on its own, Legorreta said.

"There are companies that have been doing this for a longer period of time," he said. "When you look at what is required to be successful in that kind of strategy, having an infrastructure, having product and having a sales force is important, and Elan lacks that," he said.

Royalty Pharma is confident that shareholders, some of whom have reached out to the company, will be in favor of its proposal.

When Royalty Pharma contacted Elan shareholder Matt Strobeck a few days ago, he told them he would tender at "a modest premium" to Royalty Pharma's $11-a-share offer, Strobeck told Reuters.

Strobeck, a former partner at Boston-based Westfield Capital Management Co, which in 2009 owned 18.8 million Elan shares, sold most of his personal stake in Elan over the past few years but still owns some shares in custodian accounts. Strobeck declined to say how many Elan shares he sold or still owns.

"In the end, they sold the rights to their most important asset and now it is truly like a royalty company in and of itself," Strobeck told Reuters.

"In most companies I own there is no way I would tender unless the premium was significantly higher, but in this case I would take a modest premium to $11 bucks since I view the potential for future value destruction as significant."

Legorreta declined to say if J&J, which owns 18 percent of Elan, is in favor of the deal or to identify the other Elan shareholders meeting with Royalty Pharma.

Fidelity Management & Research is the second-biggest shareholder in Elan with 13.79 percent, according to Thomson Reuters. Invesco Asset Management is the third-largest with 8.7 percent.

J&J, Fidelity and Invesco declined to comment.

Royalty Pharma has been talking to Elan about a possible deal since last autumn, Legorreta said.

Royalty Pharma questioned whether Elan would have any value at all after the Biogen deal is completed. It also said that as the world's largest buyer of pharmaceutical royalty revenue streams, Royalty Pharma may be the only buyer for Elan.

Earlier this week, Elan Chief Executive Kelly Martin told Reuters that his company did not view Royalty Pharma's offer as credible and said the majority of its investors did not believe the bid was worthy of a discussion period. He also said he expected the Tysabri deal to close in a month or two.

Elan shares were down 15 cents to $11.72 in midday trading on the New York Stock Exchange.

(Additional reporting by Padraic Halpin in Dublin; Editing by Maureen Bavdek and John Wallace)

((caroline.humer@thomsonreuters.com)(+1 646 223 6181)(Reuters Messaging: caroline.humer.reuters.com@reuters.net))

Keywords: ROYALTYPHARMA ELAN/

View the original article here

UPDATE 3-Royalty Pharma says ready to move quickly on Elan offer

* Royalty Pharma to meet with Elan shareholder J&J

* Royalty Pharma first approached Elan last year

(Adds Elan statement, Fidelity declining to comment)

By Caroline Humer and Jessica Toonkel March 6 (Reuters) - U.S. investment firm Royalty Pharma

on Wednesday stood by its offer to acquire Irish drugmaker Elan , which has rejected the approach, and said it was ready to move quickly and could complete due diligence within 20 days.

The firm is scheduling meetings with 10 to 15 of Elan's largest shareholders, including Johnson & Johnson , as well as a few smaller investors, over the next several days, Pablo Legorreta, chief executive of Royalty Pharma, told Reuters.

"We are very confident that our offer gives Elan shareholders a very attractive alternative," Legorreta said. "We really need access to the books to do due diligence."

Royalty Pharma made a $6.6 billion approach last week after Elan announced last month a $3.2 billion plan to sell its 50 percent stake in multiple sclerosis drug Tysabri to its U.S. partner, Biogen Idec .

Elan rejected Royalty Pharma and on Monday sweetened its offer to its shareholders, saying it would give them 20 percent of future royalties from Tysabri. It had already planned to return $1 billion to shareholders after the drug sale.

"The 'proposal' by Royalty Pharma remains an indication of interest, is highly conditional, and may or may not lead to an offer being made for the entire issued share capital of the company," Elan said in a written statement on Wednesday. "The highly conditional indication of interest is opportunistic in its timing."

Despite Elan's rejection, Royalty criticized Elan for not taking its bid to Elan shareholders. It also criticized Elan's sweetened offer to shareholders.

Given the competitive M&A landscape in the sector, Elan's lack of experience in making acquisitions, and the fact that without existing products there are no synergies for Elan to realize through acquisitions, Royalty Pharma believes Elan will have a tough time growing on its own, Legorreta said.

"There are companies that have been doing this for a longer period of time," he said. "When you look at what is required to be successful in that kind of strategy, having an infrastructure, having product and having a sales force is important, and Elan lacks that."

Royalty Pharma is confident that shareholders, some which have reached out to the company, will be in favor of its proposal.

Legorreta declined to say if J&J, which owns 18 percent of Elan, is in favor of the deal or to identify the other Elan shareholders meeting with Royalty Pharma.

Fidelity Management & Research is the second-biggest shareholder in Elan, with 13.79 percent, according to Thomson Reuters. Invesco Asset Management is the third-largest with 8.7 percent.

J&J, Fidelity and Invesco declined to comment.

Royalty Pharma has been talking to Elan about a possible deal since last fall, Legorreta said.

Royalty Pharma questioned whether Elan would have any value at all after the Biogen deal is completed. It also said that as the world's largest buyer of pharmaceutical royalty revenue streams, Royalty Pharma may be the only buyer for Elan.

Earlier this week, Elan Chief Executive Kelly Martin told Reuters that his company did not view Royalty Pharma's offer as credible and said the majority of its investors did not believe the bid was worthy of a discussion period. He also said he expects the Tysabri deal to close in a month or two.

Elan shares were up 1 cent at $11.88 in early trading on the New York Stock Exchange.

(Reporting By Caroline Humer; Additional reporting by Padraic Halpin in Dublin; Editing by Maureen Bavdek and John Wallace)

((caroline.humer@thomsonreuters.com)(+1 646 223 6181)(Reuters Messaging: caroline.humer.reuters.com@reuters.net))

Keywords: ROYALTYPHARMA ELAN/

View the original article here

MARKET PULSE-Ciena, PetSmart, Meredith, Horizon Pharma, Fidelity National

(For more market insights, including options activity, click on ; for The Day Ahead newsletter ;

for the Morning News Call newsletter, )

March 7 (Reuters) - Some U.S. stocks to watch on Thursday: FUTURES EDGE UP, JOBLESS CLAIMS ON TAP

U.S. stock index futures rose slightly, ahead of data on the jobs market due later in the morning, with investors poised to push the rally to new highs. Futures for the S&P 500 were up 2 points, the Dow Jones up 38 points and the Nasdaq 100 up 4 points.

** DELL INC , Wednesday close $14.32, up 0.49 pct premarket

Dell shareholder Carl Icahn proposed the No. 3 personal computer maker pay out $15.7 billion in a special dividend, becoming the second major investor to oppose a plan by founder Michael Dell to take the company private.

** CIENA CORP , Wednesday close $14.94, up 12 pct premarket

The network equipment maker reported a smaller quarterly loss, helped by a 9 percent rise in revenue.

** PETSMART INC , Wednesday close $66.55, down 7 pct premarket

At least two brokerages cut their price targets on the pet products retailer's stock after the company forecast a full-year profit that missed Wall Street estimates and gave a weak same-store sales outlook.

"Given housing trends and pet adoption rates, softer comps (comparable sales) is a surprise, particularly since we would not expect tax refund delays to affect this type of business," Jefferies & Co said in a note. The brokerage cut its price target on the company's stock to $66 from $71.

Morgan Stanley, which cut its price target on the stock to $77 from $81, said online competition from sites such as wag.com pose a threat to PetSmart.

** BOEING CO , Wednesday close $79.08

U.S. safety regulators are poised to approve within days a plan to allow Boeing to begin flight tests of the 787 Dreamliner with a fix for its volatile batteries, a critical step towards returning the grounded aircraft to service, two sources familiar with the matter said.

** COSTCO WHOLESALE CORP , Wednesday close $102.56 ** LIMITED BRANDS , Wednesday close $45.05

Victoria's Secret parent Limited Brands and Costco reported better-than-expected sales for February, when consumer confidence about an improving job market offset the impact of higher taxes.

** EXXON MOBIL CORP , Wednesday close $89.56

Exxon has launched an auction to sell up to $2 billion worth of shares in a Hong Kong power venture after a year-long effort to offload its holding to its partner yielded no result, sources familiar with the matter said.

** BLACKSTONE GROUP LP , Wednesday close $18.93

Packaged foods maker Pinnacle Foods Inc, backed by private equity firm Blackstone, raised the proposed size of its initial public offering of common stock to as much as $632.5 million.

In another development, Blackstone and TPG Capital have placed separate final bids for Australia's largest poultry producer, Inghams Chicken, sources with direct knowledge of the matter told Reuters.

** TIME WARNER INC , Wednesday close $55.46

** MEREDITH CORP , Wednesday close $40.30, down 7 pct premarket

Time Warner will soon be without the magazine unit that provided the foundation for the company and the first part of its name. Time Inc, the division that publishes titles like Time, Fortune and People, will be spun off into a separate company, Time Warner said late Wednesday, ending weeks of merger negotiations with Meredith.

** FACEBOOK INC , Wednesday close $27.45

Facebook is likely to unveil a new look for its popular 'newsfeed,' which displays an ever-changing stream of the photos, videos and comments uploaded from a user's network of friends. It is the latest move by the Web company to revamp key elements of its one-billion-member social network.

In another development, the company appointed a former Genentech executive to its board of directors on Wednesday, the social networking company's latest move to expand its boardroom following its initial public offering last May.

** HORIZON PHARMA INC , Wednesday close $2.05, up 12 pct premarket

The specialty pharmaceutical company said health regulators in the UK gave marketing approval to its arthritis drug, Duexis.

Horizon also said it was searching for one or more partners to market the treatment in Europe.

** JOHNSON CONTROLS INC , Wednesday close $32.63

Johnson Controls is exploring a potential sale of its automotive electronics business, but has no "current intention" to sell its automotive interiors unit, the company said on Wednesday.

** TIFFANY & CO , Wednesday close $70.06

Qatar's sovereign wealth fund, the largest shareholder of Tiffany & Co, further raised its stake in the U.S. luxury jeweler to 11.27 percent, according to a regulatory filing.

** SUNTECH POWER HOLDINGS CO LTD , Wednesday close $1.17

The solar panel maker said it had settled disputes over a partner's claim that it held German bonds as collateral for its investment in a solar development fund.

** SOLARCITY CORP , Wednesday close $19.27, down 8.3 pct premarket

SolarCity on Wednesday posted a quarterly loss that was steeper than Wall Street expected while revenue missed forecasts.

** JAMES RIVER COAL CO , Wednesday close $2.55

James River Coal said it suspended production at five underground mines and reduced output at three surface mines in Central Appalachia, cutting production capacity by 3 million tons.

** ELI LILLY AND CO , Wednesday close $55.08

Eli Lilly will maintain its dividend despite the erosion of its earnings by generic copies of blockbuster drugs and should be well placed by the end of 2013 to assess the potential of its future medicines, its chief executive said.

** J.C. PENNEY CO INC , Wednesday close $14.43

Two more analysts downgraded ratings on J.C. Penney's stock amid growing uncertainty around the department store chain's turnaround, leaving its shares with only one "buy" rating out of 20 Wall Street investors covering the retailer.

** LOCKHEED MARTIN CORP , Wednesday close $88.36 ** UNITED TECHNOLOGIES CORP , Wednesday close $91.07

The head of Pratt & Whitney's military engine business said on Wednesday that driving down the cost of the F-35 fighter jet was "burned in our brain," but cuts sparked by U.S. budget woes could slow the effort.

** DRYSHIPS INC , Wednesday close $1.98, down 7 pct premarket

DryShips reported a bigger-than-expected quarterly loss as voyage revenue in its drybulk carriers business fell.

** CME GROUP INC , Wednesday close $62.01

CME Group would be open to making a large acquisition should the right target emerge, a top executive said on Wednesday in the latest sign that the company may reverse its longstanding public indifference to mergers and acquisitions.

** HECLA MINING CO , Wednesday close $4.09 ** AURIZON MINES LTD , Wednesday close $4.17 ** ALAMOS GOLD INC , Wednesday close $13.57

U.S. silver miner Hecla Mining said it was confident that its deal with Aurizon Mines would go through, a day after rival bidder Alamos Gold Inc said it was close to blocking Hecla's bid.

** SMITHFIELD FOODS , Wednesday close $22.30, up 5 pct premarket

The largest U.S. hog producer reported third-quarter results that beat Wall Street estimates, helped by higher sales of packaged meat products such as Smithfield bacon and Eckrich and Armour sausages.

** NAVISTAR INTERNATIONAL CORP , Wednesday close $24.96

The truck maker appointed Chief Operating Officer Troy Clarke as its chief executive, effective April 15, replacing interim CEO Lewis Campbell.

** ECOMMERCE CHINA DANG DANG INC , Wednesday close $4.18

The online retailer posted a 31 percent rise in fourth-quarter revenue, helped by strong sales during the holiday season.

** KROGER CO , Wednesday close $29.36

Quarterly results are expected from Kroger, the biggest U.S. supermarket operator. U.S. consumers have been cutting back on spending at restaurants due to the payroll tax hike, rising gas prices and delayed federal tax refunds. Some data suggests that they may have shifted some of that spending to grocery stores like those run by Kroger.

** CANADIAN NATURAL RESOURCES , Wednesday close $30.19

Canada's No.1 independent oil producer reported a 58 percent fall in fourth-quarter profit after booking a foreign exchange-related loss but the company raised its quarterly dividend.

** MGM RESORTS INTERNATIONAL , Wednesday close $12.21

Asian Coast Development (Canada) Ltd (ACDL), which is developing Vietnam's first large-scale integrated resort, said on Thursday its partner, MGM Resorts, will no longer manage the project, the latest setback to the development.

** FIDELITY NATIONAL INFORMATION SERVICES INC , Wednesday close $38.41, down 3 pct premarket

The payment processor said Warburg Pincus was selling 19.3 million shares, dissolving the hedge funds stake in the company. Pincus owned about 7 percent of the company, as of Feb. 25, according to Thomson Reuters Data.

** ZUMIEZ INC Wednesday close $23.10, down 3 pct premarket

The surfing and snowboarding merchandise retailer reported a 9 percent fall in February same-store sales, wider than analysts expectations of a 2 percent decline, hurt by lesser number of transactions.

(Compiled by Chandni Doulatramani in Bangalore; Editing by Maju Samuel)

((chandni.doulatramani@thomsonreuters.com)(within U.S. +1 646 223 8780)(outside U.S. +91 80 4135 5800)(Reuters Messaging: Reuters messaging: chandni.doulatramani.thomsonreuters.com@reuters.net))

Keywords: MARKETS USA STOCKS/PULSE

View the original article here

INTERVIEW-Elan says investors unmoved by Royalty Pharma offer

DUBLIN, March 4 (Reuters) - The vast majority of investors at Elan do not view a $6.6 billion approach by U.S. investment firm Royalty Pharma as worthy of discussion, the Irish drugmaker's chief executive said.

Elan announced on Monday that it would give shareholders 20 percent of the royalty rights for multiple sclerosis drug Tysabri and Elan Chief Executive Kelly Martin told Reuters that this was not a response to Royalty's approach last week.

"We simply don't view the Royalty indication of interest as credible. The vast majority of our investor base simply don't view Royalty's indication as worthy of any discussion period," Martin told Reuters in a telephone interview.

"I wish Royalty well, they can do what they need to do but we're not in any discussions with them at all on any topic and we don't see any need to have those discussions."

(Reporting by Padraic Halpin; Editing by Anthony Barker)

View the original article here

MARKET PULSE-Boyd Gaming, Optimer Pharma, Clearwire, Coach, Dollar Tree

Feb 27 (Reuters) - Some U.S. stocks to watch on Wednesday:

((For more market insights, including options activity, click on ; for the Day Ahead newsletter ))

US STOCKS-FUTURES LITTLE CHANGED AHEAD OF BERNANKE, DATA

U.S. stock index futures were little changed on Wednesday as investors awaited a second round of testimony in Congress by Federal Reserve Chairman Ben Bernanke for signs of whether the Fed will continue its economic stimulus program. S&P 500 futures

rose 2.5 points, Dow Jones industrial average futures

fell 1 points while Nasdaq 100 futures rose 0.25 point.

** BOYD GAMING , Tuesday close $6.50, up 7 pct premarket

** CAESARS ENTERTAINMENT CORP , Tuesday close $12.13, up 4 pct premarket

** INTERNATIONAL GAME TECH , Tuesday close $15.89, up 0.37 pct

** ZYNGA INC , Tuesday close $3.36, up 3 pct premarket

** GLU MOBILE INC , Tuesday close $2.33, up 1 pct premarket

New Jersey Governor Chris Christie on Tuesday approved online gambling within the state's border, a move that he hopes can help boost state revenues and revive Atlantic City casinos.

The measure, announced the same day that Christie unveiled his new budget plan for fiscal 2014, will legalize Internet gaming to New Jersey's 9 million residents and also create opportunities for European companies with expertise in running online gaming operations.

** OPTIMER PHARMACEUTICALS INC , Tuesday close $10.72, up 11 pct premarket

Optimer Pharmaceuticals said it was exploring a possible sale of the company among a full range of alternatives and that Chairman Henry McKinnell would act as chief executive for the duration of the review process.

** ACCRETIVE HEALTH INC , Tuesday close $12.11, down 30 pct premarket

Shares of Accretive Health fell more than 30 percent before the bell, as the medical billing services provider withdrew its forecast and indefinitely delayed the filing of its fourth-quarter results, saying it was evaluating the timing of revenue recognition.

** TARGET CORP , Tuesday close $64.05, down 2 pct premarket

Target posted lower quarterly profit on Wednesday, as sales of food and value-priced items only partially mitigated some weakness it saw when holiday shoppers held back from discretionary spending in an uncertain economy.

** DOLLAR TREE INC , Tuesday close $41.08, up 5 pct premarket

Dollar Tree on Wednesday posted a higher quarterly profit in line with its forecast as shoppers spent more when they came into its stores and the chain controlled costs.

** VIRNETX HOLDING CORP , Tuesday close $33.96, up 4.5 pct premarket

** APPLE INC , Tuesday close $448.97

VirnetX Holding, an internet security software company, said a district court has upheld a previous patent infringement ruling against Apple and denied the iPhone maker's motion to reduce the $368 million in damages.

** COACH INC , Tuesday close $46.50, up 5 pct premarket ** NIKE INC , Tuesday close $54.27

Coach said on Wednesday it has hired a former Nike executive to oversee the transformation of its stores as it moves further into segments where the leather goods maker is a relatively small player, such as shoes and clothing.

** QUESTCOR PHARMACEUTICALS INC , Tuesday close $32.66, down 4 pct premarket

The drugmaker which reported fourth-quarter results on Tuesday, said its main product Acthar had 8 percent lower sales in its multiple sclerosis indication.

Acthar is approved in the United States to treat multiple sclerosis, infantile spasms and 17 other indications.

Questcor reported a quarterly profit of $1.03 on revenue of $160.5 million.

** ZOGENIX INC , Tuesday close $1.21, up 10 pct premarket

The drugmaker said the U.S. health regulator has delayed the decision on approval of its painkiller, Zohydro for several weeks. The regulatory decision was initially expected on March 1.

William Blair analyst Tim Lugo viewed the delay as a positive signal as delay of several months tend to signal a more significant issue between the agency and the applicant.

Zohydro contains hydrocodone, an addictive opioid which is subject to increased scrutiny due to high rates of prescription drug abuse in the United States.

** CLEARWIRE CORP , Tuesday close $3.20, down 4 pct premarket

** SPRINT NEXTEL , Tuesday close $5.78, up 1 pct aftermarket

** DISH NETWORK , Tuesday close $35.14

Clearwire said it will take $80 million in financing from Sprint Nextel in the form of exchangeable notes. Wall Street Journal had reported that Clearwire plans to tap financing from Sprint, in a move that further complicates Dish Network's effort to buy Clearwire, citing people familiar with the situation.

** JPMORGAN CHASE & CO , Tuesday close $47.60, down 0.42 pct aftermarket

JPMorgan Chase said on Tuesday that it plans to cut 17,000 jobs by the end of 2014, representing about 6.6 percent of the company's overall workforce, as the bank sheds staff that helped it deal with bad home loans.

** BOEING , Tuesday close $75.65

The Federal Aviation Administration (FAA) said it is not close to approving test flights of Boeing's 787 Dreamliner with a proposed fix for the plane's troubled batteries, denying news reports that such tests could start as early as next week.

** WALT DISNEY CO , Tuesday close $53.90

Proxy advisers ISS and Glass, Lewis & Co urged Disney shareholders to vote in favor of a proposal to split the chairman and chief executive roles now both held by Robert Iger.

** GOOGLE INC , Tuesday close $790.13

** FACEBOOK INC , Tuesday close $27.39, down 0.43 pct aftermarket

Google transformed the Internet by cataloging the Web's countless pages. Now it wants to keep better track of the Web's multitude of users. The Mountain View, California-based company said Tuesday it would begin encouraging websites and mobile apps to accept log-in credentials via Google+, its social network.

The integration with third-party sites and apps, which Google hopes will help it track users as they surf across the Internet, represents the search powerhouse's latest effort to establish a foothold in the all-important social Web arena - and beat back competition from Facebook, the sector leader.

** MICROSOFT CORP , Tuesday close $27.37 ** APPLE INC , Tuesday close $448.97

A top Microsoft executive side-stepped questions on Tuesday about any plans the software maker may have to bring its Office suite of applications to Apple's iPad.

** DINEEQUITY INC , Tuesday close $72.28

The owner of the Applebee's and IHOP restaurant brands, reported a 34 percent fall in quarterly profit following the sale and refranchise of Applebee's company-operated restaurants and due to higher income taxes.

** JOY GLOBAL INC , Tuesday close $59.96, down 2.4 pct premarket

Mining equipment maker Joy Global posted a first-quarter profit that came above analysts' expectations, but said aftermarket orders declined from the fourth quarter.

** BIG 5 SPORTING GOODS CORP , Tuesday close $15.15, up 6 pct after market

The sports goods retailer reported fourth-quarter results that beat analysts' estimates, helped by strong performance in its hardgoods business. The company said its hardgoods category benefited from the increase in demand for firearms and ammunition products in the United States.

Big 5 also forecast first quarter 2013 profit far above Wall Street estimates, based on the increased demand for firearms and on favorable winter weather conditions.

** DREAMWORKS ANIMATION SKG INC , Tuesday close $16.61, down 3 pct aftermarket

Movie studio DreamWorks reported its first quarterly loss in almost six years as it wrote down $165 million related to the weak box office performance of "Rise of the Guardians" and its decision to delay another film.

** GUIDEWIRE SOFTWARE INC , Tuesday close $31.53, up 14 pct aftermarket

The company, which provides software to property and casualty insurers, reported a quarterly profit that blew past analysts' estimates, helped partly by several customers who made payments earlier than their third-quarter due dates.

** PRICELINE.COM , Tuesday close $678.49, up 4 pct premarket

The online travel agency known for its name-your-own-price auction, on Tuesday topped analysts' estimates for quarterly profit, citing improved hotel and car-rental reservations.

At least six brokerages raised their price targets on Priceline.com's shares, some by more than $100 per share.

"We're encouraged by Priceline's performance in a more challenging operating environment and also note the company faces easier comparisons over the next couple of quarters," JP Morgan analyst Doug Anmuth wrote in a note to clients.

** ZAGG INC , Tuesday close $7.48, up 5.4 pct after market

The mobile accessories maker posted better-than-expected fourth-quarter results, helped by strong sales during the holiday season and forecast 2013 revenue well above analysts' estimates.

** OFFICE DEPOT INC , Tuesday close $3.99

Office Depot's largest shareholder, Starboard Value LP, urged the office supply chain's board to explore the sale of its Mexican joint venture interest soon.

** LOCKHEED MARTIN , Tuesday close $87.30, down 1.2 pct premarket

The Pentagon program chief for the F-35 warplane slammed its commercial partners Lockheed Martin and Pratt & Whitney on Wednesday, accusing them of trying to "squeeze every nickel" out of the U.S. government and failing to see the long-term benefits of the project.

** FIRST SOLAR INC , Tuesday close $31.36, down 12 pct premarket

** SUNPOWER CORP , Tuesday close $11.69, down 7 pct premarket

First Solar on Tuesday reported a quarterly profit, reversing a year-ago loss, but the U.S. solar company's shares fell 8 percent after it failed to offer an earnings and sales outlook for 2013.

** MAKO SURGICAL CORP , Tuesday close $11, up 6 pct aftermarket

Mako reported a fourth-quarter loss of 13 cents per share on revenue of $30.2 million on Tuesday.

William Blair analyst Matthew O'Brien said the surgical device maker's fourth quarter loss was narrower than expected by the brokerage. O'Brien said Mako's reduced research and marketing expenses should help allay concerns about the company's cash burn rate and need for additional capital.

** EXXON MOBIL CORP , Tuesday close $88.51

Exxon Mobil has won the reversal by Maryland's highest court of a $1 billion punitive damages award stemming from an underground leak at a gas station, and also won the reversal of portions of nearly $650 million of compensatory damages awards.

** AMERICAN INTERNATIONAL GROUP INC , Tuesday close $37.69

** BANK OF AMERICA CORP , Tuesday close $11.13

A federal judge has put AIG's dispute with a financial crisis-era bailout vehicle on hold while another court addresses the insurer's separate $10 billion lawsuit against Bank of America over defective mortgages.

** CABLEVISION SYSTEMS CORP , Tuesday close $15.29 ** VIACOM INC , Tuesday close $57.28

Cablevision has accused Viacom in an antitrust lawsuit of forcing it to pay for more than a dozen low-rated cable networks in order to get access to Viacom's more popular channels such as Nickelodeon, MTV and Comedy Central.

** CHARLES SCHWAB CORP , Tuesday close $16.21

The Financial Industry Regulatory Authority (FINRA) will appeal a ruling that allowed Charles Schwab to require customers to waive their right to participate in class-action suits, a spokeswoman said on Tuesday.

** PARTNER COMMUNICATIONS , Tuesday close $5.65

Partner Communications , Israel's second-largest mobile phone operator, reported weaker than expected quarterly profit and said it could have weak earnings throughout 2013 due to fierce competition that has slashed calling rates.

** EBAY INC , Tuesday close $53.82

Max Levchin, co-founder of online payment giant PayPal, launched a rival business on Tuesday called Affirm that will compete in the crowded but fast-growing mobile payments business. PayPal, owned by eBay, is the leader in online payments.

** BEST BUY CO INC , Tuesday close $16.46, down 2.4 pct aftermarket

Best Buy founder Richard Schulze's effort to take the company private is in trouble after attempts to secure financing faltered while an alternative strategy to line up minority investors may not pan out either, five sources familiar with the matter said.

** AMGEN INC , Tuesday close $89.47

The U.S. Food and Drug Administration said on Tuesday it has stopped all pediatric clinical trials of Amgen's Sensipar after the death of a 14-year-old patient taking part in a study of the drug.

** ELAN CORP , Tuesday close $11.03

New York-based investment firm Royalty Pharma does not want to take "no" for an answer to its $6.6 billion offer for Irish drugmaker Elan Corp .

** CENTRAL EUROPEAN MEDIA ENTERPRISES , Tuesday close $5.28,

** TIME WARNER INC , Tuesday close $52.28

Central European Media Enterprises said it is looking to raise cash by selling assets, raising fees and holding talks with its largest shareholder, Time Warner, over increasing its stake in the broadcaster.

** PAPA JOHN'S INTERNATIONAL INC , Tuesday close $56.65, down 8 pct aftermarket

Papa John's said it would restate financial results dating back to 2009 after the company found accounting errors in a joint venture agreement.

** COMMONWEALTH REIT , Tuesday close $24.40

Office building operator CommonWealth REIT on Wednesday said it will go ahead with a common share offering and debt tender offer despite opposition from several large investors.

** TIVO INC , Tuesday close $12.41

Digital video recorder pioneer TiVo reported a higher quarterly revenue as its subscription base expanded.

** DIGITALGLOBE INC , Tuesday close $27.00

DigitalGlobe posted better-than-expected quarterly results largely due to increased sales of its satellite images to businesses and U.S. intelligence agencies.

(Compiled by Chandni Doulatramani in Bangalore)

((chandni.doulatramani@thomsonreuters.com)(within U.S. +1 646 223 8780)(outside U.S. +91 80 4135 5800)(Reuters Messaging: Reuters messaging: chandni.doulatramani.thomsonreuters.com@reuters.net))

Keywords: MARKETS USA STOCKS/PULSE

View the original article here

UPDATE 1-Royalty Pharma plans to tap Elan investors on offer -source

* Royalty has not received response from Elan

* Biggest shareholder is Johnson & Johnson

(Adds Royalty Pharma declined to comment, updates share price, analyst comment)

By Jessica Toonkel

NEW YORK, Feb 26 (Reuters) - New York-based investment firm Royalty Pharma does not want to take "no" for an answer to its $6.6 billion offer for Irish drugmaker Elan Corp .

The company plans to spend the next few weeks calling Elan shareholders about its offer made on Feb. 18, according to a source familiar with the situation.

Royalty Pharma, which buys royalty streams of patented drugs and whose portfolio includes rheumatoid arthritis treatments Humira and Remicade, is turning to Elan's investors because it has received no formal response from the company about its offer, said the source, who wished to remain anonymous because of not being allowed to speak to the media.

Elan's biggest shareholder is Johnson & Johnson with an 18 percent stake.

An Elan spokesman declined to comment, as did Johnson & Johnson. A Royalty Pharma spokesman did not return a request for comment.

Royalty Pharma's offer, worth $11 per Elan share, came just days after Elan announced it had sold its 50 percent interest in multiple sclerosis drug Tysabri for $3.25 billion plus future royalty payments to U.S. partner Biogen Idec.

As a result of the Tysabri sale, Elan announced on Friday that it would return $1 billion to shareholders and make acquisitions with the rest of the $3.25 billion raised from the deal. Elan did not disclose the Royalty Pharma offer, which was not a formal bid.

Elan, in a statement on Monday, said Royalty Pharma's bid was an "indicative, conditional, proposal which may or may not lead to an offer being made for the entire issued share capital of the Company".

Elan also called the Royalty Pharma bid "highly opportunistic", given that shareholders had not had the opportunity to assess the full benefits of the Tysabri sale.

However, Royalty Pharma does not think Elan's management had the experience to make acquisitions, the firm said in its statement announcing its proposed offer on Monday.

Still, Royalty Pharma may have a tough time buying Elan given its $11-a-share offer, wrote Corey Davis, an equity analyst for Jefferies, in a note on Tuesday.

Royalty Pharma will have to get closer to $20 a share if it wants to buy the company, wrote Davis, who has a "buy" on Elan.

Elan's stock on Tuesday closed slightly above the offer price at $11.03, a 7 percent increase from Friday's close on the New York Stock Exchange.

(Reporting By Jessica Toonkel; Editing by Maureen Bavdek and Dale Hudson)

((Jessica.toonkel@thomsonreuters.com)(646-223-7882)(Twitter:

@jtoonkel)(Reuters Messaging: jessica.toonkel@thomsonreuters.com))

Keywords: ROYALTYPHARMA ENDO/

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Acquisitions help Jazz Pharma 4Q profit soar

Jazz Pharmaceuticals PLC's fourth-quarter earnings soared, as the Irish drugmaker's revenue swelled due to acquisitions and sales growth for its narcolepsy treatment Xyrem.

The Dublin-based company also said Tuesday after markets closed that it had a deal to develop and sell a key compound in Xyrem, a move that could strengthen the company's patent protection of the drug.

In the quarter ended Dec. 31, Jazz reported net income of $200.6 million, or $3.28 per share, up from $37.5 million, or 79 cents per share, a year earlier. Adjusted earnings in last year's quarter totaled $1.53 per share.

Revenue more than doubled to $183.7 million from $80.9 million a year ago.

Analysts surveyed by FactSet expected, on average, earnings of $1.40 per share on $182.4 million in revenue.

Last June, Jazz said it completed its purchase of cancer drug maker EUSA Pharma for $650 million. In January, Jazz completed its all-stock acquisition of privately held Azur Pharma Ltd., a combination that created a specialty drug company headquartered in Dublin. Jazz was based in Palo Alto, Calif.

Jazz said the acquisitions helped drive its revenue increase. Xyrem sales climbed 58 percent to $113.5 million compared to last year's quarter.

The acquisitions also contributed to steep growth in operating expenses to $116.3 million from $45.8 million.

For the full year, Jazz earned $288.6 million, or $4.79 per share, up from $125 million, or $2.67 per share, a year earlier, Annual revenue rose to $586 million from $272.3 million a year ago.

Jazz said it expects adjusted earnings to range between $5.70 and $5.90 per share in 2013 on revenue ranging from $805 million to $835 million. Analysts expect earnings, on average, of $5.72 per share on $805.2 million in revenue.

Jazz said it reached an agreement with Concert Pharmaceuticals Inc. that gives Jazz worldwide rights to develop and sell Concert's deuterium-modified sodium oxybate compounds. Sodium oxybate is the active ingredient in Xyrem.

Brean Capital analyst Gene Mack said in a research note the deal strengthens Jazz's patent protection for Xyrem, and it also could allow for once-daily dosing of the drug.

U.S.-traded shares of the company climbed 2.1 percent, or $1.17, to $58 before the markets opened Wednesday.

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BRIEF-Antares Pharma says FDA accepted Otrexup NDA

Feb 27 (Reuters) - Antares Pharma Inc :

* Announces FDA acceptance of new drug application for Otrexup(TM)

* Says FDA has assigned a prescription drug user fee act (pdufa) date of

October 14, 2013 * Source text * Further company coverage

((Bangalore Newsroom; +1 646 223 8780))

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