Jan 9, 2013|
Stock Talk - Lauren Miglore, Morningstar
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
Welcome back into the financial exchanged jokes on -- filling in for burial Armstrong alongside the June ninth and we are joined now. By Warren -- from morning star and -- how are you this morning. And find that think having -- Well absolutely and and let's talk a little bit I know there's been a lot of deal making that's happened in the Biotech space so what do we first start by going over some of the deals that happened last year I know there were a couple big ones in particular that stood out. -- get to -- and compact and Christine deals actually want I was on the program this time last year one of the take out as one of the current that we targeted Human Genome Sciences. After several months of negotiation in which state turned hostile for a period. -- one of our longtime cable repair exhuming you don't find it agreed to sell itself to longtime partner GlaxoSmithKline. For three point six billion. And that was really to gain access to -- gain on novel drug at least that which was the first drug approved for the bad in fifty years. And then another draft another major deal last year wise at Bristol-Myers. And AstraZeneca. Which seeking debt to finance the five point three billion dollar acquisition up and -- And it really reinforce both of -- authority strongly entrenched into the diabetes market. To really FB -- BC drug makers scale back RED and need to manage earnings we think big pharma firms will continue to use mergers and acquisitions helped offset pat. -- -- And insufficient internal pipeline activity on their own. And so let's let's talk about going into 2013 now we're obviously only a few days into the new year. There are some companies that you believe are some pretty good targets the first one I was a company called -- regenerate on and tell us a little bit about what they do and who might be looking to buy this company. Sure check well and she doesn't thirteen we do expect drug makers to spoken probably is the most productive areas that -- department mainly can't very often these therapies -- here. I'm all of our picks or take out that doesn't taking really into the category. Jenner on kicker REG and is at seventeen billion dollar company. And it really has one of the most promising new commercial stage -- out there. Last year the firm double the number of marketed indications and tripled its market cap lecture while it. And it amendment is really showing no signs of stopping rightly got piling up for example has seen. -- -- in the wet age related macular degeneration market I think it's more convenient dosing schedule and Bible incentives. Any new approval -- this in other and I related indications that ultimately drive sales in excess of four billion. We think that a large Parma player like fantasy which is one of the -- some longtime partner could be. I guilty Culver. Kemper Jennifer. Yeah and it's certainly sanity has been -- over the last couple years about buying out companies. In particular with their big buyout of Genzyme. A couple years ago and and talking about another company that you are looking at at this point the company is -- it's also a little bit about what they do. Sure unexpected hero and act -- that I went five billion dollar company is another term really bulking up extra portfolio and emerging at the leading player in Eric -- treatment. You haven't well what the transfer racially your -- Kermit well formerly a one drug wonder. But that launched multiple myeloma drug control it last year and also restrict -- Q8 years into -- -- -- -- So the firm now has three product and its commercial lineup. And it burst at commercially available product next the bar is approved for kidney cancer and liver can't there and it's also been studied in additional indications. The leaking you know on it could be attractive target for any acquire looking to boost its presence in oncology but the friend longtime partnership with Bayer could make that logical -- And and the last company here. This company called Seattle Genetics tell us a little bit about their market and you could be a potential buyer for them. The Seattle Genetics ticker at GE and actually billion dollar company as they had a -- for factory hot skin from all the drag -- expect it approved. Outlast at the first of a new class the next generation an arms drugs. It could be deeper and more effective than other can't get their feet on the market they're proprietary technology. And really delivered the drug straight against the target. And -- and enhances the anti tumor activity well to -- income tax equity Q other issues. Didn't really think it's technology could be valuable to any of the lights are required the company actually has twelve deals to date sports technology in addition to its -- product. And all the milestone that could potentially get -- potentially surpassed three billion dollars. And we think this could be good state for any of the large drug makers looking to benefit from it indicated capability they don't really have. One partnership is necessarily much stronger than the other that this is more of I don't think open target here. All right well Lauren I appreciate you coming -- with us this morning really appreciate the insight into these companies that I know a lot of our listeners probably aren't that familiar with. To start off with so again I appreciate the insight here. Out all right that was Lauren Magloire from Morningstar and if you are interested in taking a closer look at these companies again the three that Warren. Mentioned here today the first regeneron with a ticker or EG and the second. Onyx with a ticker ON XX and the last one Seattle Genetics with the ticker. SG. That's coming up right here on the financial exchange.