Top Pick of the Day: JNJ

Johnson & Johnson (JNJ) announced results from  a Phase 2 clinical trial assessing the triple combination ofOlysio (simeprevir), Achillion Pharmaceuticals’ odalasvir (formerly ACH-3102) and Janssen’s Alios BioPharma unit’s AL-335 (JNJ-4178). The results showed a 100% cure rate for six- and eight-week treatment regimens in HCV genotype 1 patients without cirrhosis. However, the three-drug combo did not demonstrate sufficient efficacy in HCV genotype 3 patients to justify continued development in this population.
Johnson & Johnson stock has gained over 5 percent this year so far and is trading close to its 52 weeks high of $129.

Focus Ticker: BCR

C.R. Bard Inc. (BCR) and Becton Dickinson (BDX) finalize the deal for buying Bard. The deal provides for Bard shareholders to receive nearly $222.93 per share in cash. They will also be entitled to receive  0.5077 shares of Becton Dickinson for each share of Bard they hold. The entire deal is worth nearly $24 billion and values Bard stock at $317 per share. This valuation is at 25 percent premium to the company stock’s Friday closing price.
The acquisition is expected to generate $300 million in annual run-rate synergies by 2020. It is also expected to produce revenue synergies by 2019. Both the parties expect the deal to be finalized fall this year. Bard stock gained 24 percent in the pre-market trading segment.

Sector News

EyeGate Pharmaceuticals (EYEG) announced filing an S-1 for offering its stock. The initial registration is for a maximum offering of $11.5 million. The company has listed Wedbush PacGrow as its underwriter. The company plans to use proceeds for supporting its operations “including for clinical trials, for working capital and for other general corporate purposes.”

Argenx (ARGNF) announced filing for a US initial public offering of up to $74.8 million. The dutch company is engaged in the business of providing development of therapeutic antibodies for the treatment of cancer and severe autoimmune diseases. It plans to list its ADRs on Nasdaq under the symbol ARGX.