Healthcare Review: Cardiome Pharma, Intellipharmaceutics, Omeros Corporation, Horizon Pharma, Johnson & Johnson Print E-mail
By Mary Davila   
Tuesday, 19 November 2013 14:50
The Dow Jones industrial average climbed above 16,000 for a second day, bolstered by a rally in Home Depot shares after stronger-than-expected earnings. A recovery in the U.S. housing market helped Home Depot top profit and sales estimates for the third quarter, prompting the No. 1 home improvement chain to raise its fiscal-year outlook for the third time this year. Its stock hit a lifetime high at $82.25. At midday, Home Depot was up 1.7 percent at $81, supporting the Dow and the S&P 500. The major indexes continued to face resistance at key levels a day after the Dow traded above 16,000 and the S&P 500 topped 1,800 for the first time. Both indexes were unable to hold those levels at Monday's close.

Cardiome Pharma ($CRME +21.2%) posts big gains after announcing the acquisition of Aggrastat maker Correvio. The move should be somewhat transformational for CRME given that Correvio has a complementary product and worldwide annual revenues of ~$30M. Here's CRME: "[This move] markedly accelerates [our] recent transformation from a research and development-based company to an integrated, commercial, specialty pharmaceutical company." Ultimately, the deal will assist CRME with the Brinavess launch by "providing an operational European platform [and] global distribution."

The sell-side is beginning to weigh in on Intellipharmaceutics ($IPCI +72%) on what is a banner day for the shares following FDA final approval for generic Focalin XR.

Brean's Jonathan Aschoff "believes the sales generated from generic Focalin XR should significantly enhance the company's financial position." Price target is $7.For its part, Maxim is raising the target on the shares to $9 from $7.

Omeros Corporation ($OMER) rises 10% premarket after announcing the presentation of data showing OMS302 reduces the occurrence of intraoperative pupil constriction. "Ophthalmologists continue to appreciate the potential clinical benefits of OMS302," CEO Gregory Demopulos says, adding that the company is looking forward "to the drug's expected commercial launch in 2014."

Horizon Pharma ($HZNP) has agreed to acquire the U.S. rights to arthritis-pain tablets Vimovo from AstraZeneca's (AZN). Horizon will pay $35M up front and royalties to Pozen (POZN), which owns patents that cover Vimovo. Horizon expects the transaction to "significantly increase" its revenues and accelerate the company's time to profitability, with the company forecasting a non GAAP profit next year versus consensus for a loss of $0.04.Horizon estimates revenue of $190-205M, well above Street predictions of 157.55M,The company will host a conference call at 8 am ET to provide further details.

Johnson & Johnson ($JNJ +0.2%) reportedly agrees to pay at least $2.5B to resolve thousands of lawsuits filed by patients who alleged they were injured by some of the company’s artificial hips.JNJ would pay $250K for each surgery to replace the hips in ~8,000 patients in the U.S., and it would set up a $475M fund to cover the costs of extraordinary medical injuries, such as strokes, heart attacks or multiple surgeries to replace artificial hips. The sides are still negotiating the timing of JNJ's payments and other final terms.




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