Elan Corporation, plc (ADR) (ELN), VIVUS, Inc. (VVUS), MannKind Corporation (MNKD): Three Biotech Companies to Watch This Summer

Page 1 of 2

The news flow from biotech companies might slow down during the summer, but it won’t stop. In fact, a few biotechs are expecting news that could move their stock substantially. Here are three biotech companies to keep your eye on while you’re hanging out at the beach.

Up for sale
After Elan Corporation, plc (ADR) (NYSE:ELN) failed to convince its shareholders that its new business model was the right one, the biotech company formally put itself up for sale last Friday.

Elan Corporation, plc (ADR) (NYSE:ELN)

I figured it would take a couple of months for the bankers to start dropping hints as to who might be interested. Instead, it we got the first one in less than a week, as Reuters reported Wednesday that Forest Laboratories, Inc. (NYSE:FRX) was mulling a bid according to “people familiar with the situation.” I expect we’ll get a lot more unnamed sources paraphrased in articles as the summer progresses and as Elan Corporation, plc (ADR) (NYSE:ELN)’s bankers try to get the most bidders to the table.

Royalty Pharma previously offered $13 per share plus $2.50 in contingent value rights if Tysabri hits certain milestones. Since management wasn’t willing to accept that offer, we can assume an acquisition offer will have to be higher than that.

My guess is that any offer that Elan Corporation, plc (ADR) (NYSE:ELN) gets, will probably similarly contain a CVR, which allows the two sides to agree to disagree to the potential upside, while still getting the deal done. The only question now is whether Elan can find someone willing to pay a base price above the current market price.

A take-under — where CVR helps make up the price difference — is certainly an option and is the biggest risk to owning the stock beyond Elan Corporation, plc (ADR) (NYSE:ELN) not being able to find a bidder altogether.

Obesity catfight
VIVUS, Inc. (NASDAQ:VVUS)
will launch fights on two fronts this summer.

The biotech company’s obesity drug Qsymia now has direct competition from Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) and Eisai‘s recently launched Belviq. I continue to think there’s plenty of room for both drugs on the market; obesity is an epidemic after all. But in the short term, it’s going to be interesting to see if the launch of Belviq cuts into Qsymia sales.

VIVUS, Inc. (NASDAQ:VVUS) will also be waging a proxy war against the largest shareholder, First Manhattan, which is trying to unseat the board at the company’s annual meeting on July 15. First Manhattan claims that Qsymia’s slow launch is because the board doesn’t have the commercial expertise.

I’m not sure if VIVUS, Inc. (NASDAQ:VVUS)’ shareholders will buy it, and even if they do, it’s not clear that a change will make a material difference on the launch. Nevertheless, the fight will be a distraction for the next month, which certainly isn’t going to help with the biotech company’s launch.

Last clinical trials!
MannKind Corporation (NASDAQ:MNKD)
has been developing its inhaled insulin product Afrezza for years. The FDA rejected the drug-device combo in 2010, requesting additional information on the clinical utility of Afrezza.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!