During Tuesday’s current trade, Shares of Gilead Sciences Inc. (NASDAQ:GILD), gained 3.87%, and is now trading at $104.60.
According to Bernstein analyst Geoff Porges, Gilead Sciences, should solve the long-term revenue cliff problem some investors and analysts believe the company faces by acquiring Vertex Pharmaceuticals (VRTX) and its growing cystic fibrosis drug franchise for $45 billion.
Writing to clients Tuesday morning, Porges says Gilead “needs the promise or high probability of an incremental $5-7 billion of revenue to reassure investors about their future outlook, and ideally any investment would add optionality for even higher revenue should upside scenarios play out.”
Gilead’s stock price has significantly underperformed the broader biotech market over the past six months, in part because investors are concerned about increasing competition eroding its most important HIV and hepatitis C drug franchises.
Porges estimates Gilead will lose 30-40% of its revenue between 2017 and 2021. But Gilead also has an enormous stockpile of cash and access to cheap debt with which it can make another transformative acquisition, just like the company did twice before.
Gilead Sciences, Inc., a biopharmaceutical company, discovers, develops, and commercializes medicines in areas of unmet medical nee in North America, South America, Europe, and the Asia-Pacific.
During morning trade, Shares of General Electric Company (NYSE:GE), declined -0.89%, and is now trading at $26.79.
Today, General Electric Company, unit GE Energy Financial Services has formed a new partnership with Tokyo-based renewable energy project developer, Green Power Investment Corp., to invest in a 42-megawatt (DC) photovoltaic solar power project in Futtsu City, Japan. GE Energy Financial Services will invest alongside GPI in the project. In addition to the investment from GPI and GE Energy Financial Services, financing from a syndicate of four banks, led by The Bank of Tokyo Mitsubishi UFJ, Ltd. will be utilized for the project. Additional financial details are not revealed.
Located in Japan’s prefecture of Chiba, the Futtsu solar plant is presently under construction and is predictable to reach commercial operations in January 2016. It will sell its power via a 20-year power purchase contract with Japan’s largest utility, Tokyo Electric Power Company Inc., under the Japanese feed-in tariff regime. Once complete, the project will generate about ¥50 million in annual local tax revenues for Futtsu City and Chiba Prefecture.
The project’s photovoltaic solar panels are being supplied by Kyocera Solar Corporation, a Japanese partner of Kyoto-based Kyocera Corporation. GPI is managing construction and operations, and Kyocera Communication Systems Co. will provide ongoing operations and maintenance services.
General Electric Company (GE) operates as an infrastructure and financial services company worldwide. The company’s Power and Water segment offers gas, steam and aeroderivative turbines, nuclear reactors, generators, combined cycle systems, controls, and related services; wind turbines; and water treatment services and equipment.
Shares of Teva Pharmaceutical Industries Limited (NYSE:TEVA), during its Tuesday’s current trading session gained 2.13%, and is now trading at $64.64.
Today, Teva Pharmaceutical Industries, declared a proposal to attain all of the outstanding shares of Mylan N.V. (MYL) in a transaction valued at $82.00 per Mylan share, with the consideration to be comprised of about 50 percent cash and 50 percent stock. The Teva cash and stock proposal provides Mylan stockholders with a substantial premium and immediate cash value, as well as noteworthy potential for future value creation through participation in a financially and commercially stronger company.
Teva’s proposal also provides Mylan stockholders with a more attractive alternative to Mylan’s projected acquisition of Perrigo Company plc (NYSE and TASE: PRGO), as declared on April 8, 2015, in addition to to Mylan on a standalone basis. Teva’s proposal would provide Mylan stockholders with consideration representing a 37.7% premium to the stock price of Mylan on April 7, 2015, which is the last day of trading preceding to Mylan’s press release regarding its unsolicited proposal for Perrigo, and a 48.3% premium to the unaffected stock price of Mylan on March 10, 2015, which is the last day of trading preceding to widespread speculation of a transaction between Teva and Mylan.
The projected combination of Teva and Mylan would create a leading company in the pharmaceutical industry, well positioned to transform the global generics space. The combined company would leverage its significantly more efficient and advanced infrastructure, with improved scale, production network, end-to-end product portfolio, commercialization capabilities and geographic reach. With this platform, the combined company would focus on complex technologies and more durable and sustainable products, in combination with robust capabilities in specialty drug development and commercialization. As a result, the combined company would have a unique and differentiated business model addressing noteworthy trends and discontinuities prevailing recently among patients and healthcare systems around the world. The combined company would also have an improved financial profile, creating the opportunity for rapid deleveraging and the funding of future growth – in generics, specialty and the intersection of the two.
Teva Pharmaceutical Industries Ltd. is a leading global pharmaceutical company that delivers high-quality, patient-centric healthcare solutions to millions of patients every day. Headquartered in Israel, Teva is the world’s largest generic medicines producer, leveraging its portfolio of more than 1,000 molecules to produce a wide range of generic products in nearly every therapeutic area.
Finally, Verizon Communications Inc. (NYSE:VZ), lost -0.56% Tuesday.
Today, Verizon Communications, declared first-quarter 2015 results highlighted by customer growth in key wireless and broadband markets, strong earnings and raised cash flow.
The company stated $1.02 in EPS in first-quarter 2015, contrast with $1.15 per share in first-quarter 2014.
There were no non-operational adjustments to first-quarter 2015 per-share results; first-quarter-2014 results comprised of non-operational gains related to Verizon’s acquisition of full ownership of Verizon Wireless in February 2014.
First-quarter 2015 earnings of $1.02 per share compares with 84 cents per share in adjusted EPS (non-GAAP) in first-quarter 2014 – a raise of 21.4 percent.
In first-quarter 2015, Verizon agreed to sell its local wireline operations serving customers in three states to Frontier Communications, monetized wireless tower assets in a transaction with American Tower, and declared an accelerated share-repurchase program to return $5 billion in capital to shareholders. The company also accomplished the purchase of $10.4 billion in spectrum in the Federal Communications Commission’s AWS-3 auction.
Verizon Communications Inc., headquartered in New York, is a global leader in delivering broadband and other wireless and wireline communications services to consumer, business, government and wholesale customers. Verizon Wireless operates America’s most reliable wireless network, with 108.6 million retail connections nationwide.
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