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

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

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!