Health and Healthcare

5 BioPharma Movers That Cannot Be Ignored

Chris Lange

Published: November 7, 2015 9:25 am

Last Updated: January 13, 2020 5:25 pm

Last week, a few biotech companies made absolutely massive runs, but some had serious falls. In the past year, the health care sector was on fire from positive trials, U.S. Food and Drug Administration (FDA) approvals and mergers and acquisitions. The companies that 24/7 Wall St. has picked stood out from the rest with large swings over the course of the week. We have included information about each company, as well as recent trading activity and the consensus price target.

MannKind Corp. (NASDAQ: MNKD) stock was under pressure on Wednesday on news of a key analyst downgrade. The move may have been altered a bit due to MannKind being one of the most shorted stocks on Wall Street. What is interesting about this downgrade is that it nearly echoes some of the concerns over sluggish growth for Afrezza, MannKind’s inhalable insulin, and that patient interest remains low.

Over the week, shares fell 19%, but year to date shares are down 46.5%. MannKind shares closed out the week at $2.87, within a 52-week trading range of $2.64 to $7.88. The consensus analyst price target is $4.83.

ZS Pharma Inc. (NASDAQ: ZSPH) has agreed to be acquired by AstraZeneca in a deal worth $2.7 billion. The deal will give AstraZeneca access to ZS Pharma’s treatment for hyperkalemia, a condition associated with chronic kidney disease and chronic heart failure. The deal values ZS Pharmaat roughly $90 and reflects about a 40% premium from Thursday’s closing price of $63.31.

Last week, shares dropped 4% (to Thursday’s close), and year to date shares are up 52%. They were at $89.04 on Friday’s close. The consensus price target is $85.75, and the 52-week trading range is $34.35 to $89.40.

ALSO READ: Wall Street Hammered These 3 Biotech Stocks: Are They Really Screaming Buys?

XOMA Corp. (NASDAQ: XOMA) was on a roller coaster over the past week. First shares were up big early in the week on the initiation of a proof-of-concept study in patients with congenital hyperinsulinism. However, shares cratered in the second half of the week after the company released less than favorable earnings.

Shares rose 48% last week (to Thursday’s close), and year to date shares are down 51%. The stock ended the week at $1.23, within the 52-week range of $0.69 to $5.95. The consensus price target is $2.30.

Dyax Corp. (NASDAQ: DYAX) announced that it will be acquired by Shire for $37.30 per share in a cash agreement, reflecting a total payment of approximately $5.9 billion. At the same time, Dyax shareholders also will receive a non-tradable contingent value right to receive $4 for each Dyax share upon approval of Dyax’s DX-2930 treatment for hereditary angioedema. That potential payout would add about $646 million to the total Shire is paying for Dyax.

Over the week, shares rose 26%, but year to date shares are up 148%. Dyax closed out the week at $34.52, within a 52-week trading range of $12.38 to $36.68. The consensus analyst price target is $32.16.

Valeant Pharmaceuticals International Inc. (NYSE: VRX) was compared to Enron in a recent research report from Citron Research, a short-selling firm. On this news, shares absolutely tanked. Since then the company defended itself and its relationship with Philidor, which was questioned in the report, as well as its accounting practices. However, Valeant later cut ties with Philidor.

By the end of the week, shares still were down 29%, and year to date they are down 45%. Shares were at $81.77 on Friday’s close. The stock has a consensus analyst price target of $52.38 and a 52-week trading range of $73.32 to $263.81.

ALSO READ: Why Is This Analyst Now So Negative on MannKind?