On Monday, Shares of Valeant Pharmaceuticals Intl Inc (NYSE:VRX), lost -16.61% to $166.33.
A thunderclap from congressional Democrats sent Valeant Pharmaceuticals International shares into a tailspin Monday. But the stock’s troubles go beyond political risk, according to WSJ.
In the latest chapter of the controversy over high-price drugs, Democrats from the House Oversight Committee called for a subpoena for documents allegedly withheld by Valeant concerning the rationale for price improvements for certain drugs. The stock fell by about 16% Monday afternoon and is now down nearly 40% from the record reached in August.
The Democrats’ request came hours after Valeant chief J. Michael Pearson sent a letter to employees to reassure them about the small role drug-price improvements play in its corporate strategy. “Valeant is well-positioned for strong organic growth, even assuming little to no price improvements,” he wrote. WSJ Reports
Valeant Pharmaceuticals International, Inc. is a specialty pharmaceutical and medical device company. The Company is engaged in developing, manufacturing, and marketing a range of branded, generic and branded generic pharmaceuticals, over-the-counter (OTC) products, and medical devices (contact lenses, intraocular lenses, ophthalmic surgical equipment, and aesthetics devices), which are marketed directly or indirectly in over 100 countries.
Shares of Host Hotels and Resorts Inc (NYSE:HST), declined -2.49% to $15.65, during its last trading session.
Host Hotels and Resorts declared that in connection with potential future capital markets transactions counting additional repurchases of Company stock and in light of a combination of anticipated asset sale transactions, hotel administration transitions, and recent market developments, it is providing an update to its full year guidance.
The Company has made considerable progress on several international asset sales which are predictable to close over the next 60 days, subject to standard closing conditions. These sales should generate net proceeds to the Company of about $200 million after debt repayment of $94 million. The proceeds are predictable to be used to fund the stock repurchase plan and for other corporate purposes. The sale of these assets will reduce the previous forecast for 2015 Adjusted EBITDA issued on July 30, 2015 by about $5 million. The full year impact of these sales on 2016 Adjusted EBITDA is predictable to be about $22 million.
In connection with the sale of certain of these assets, the Company has made the decision to exit the Asia-Pacific market. The Company is happy with the success of these investments, which are predictable to generate solid returns even after taking into account currency impact. However, the Company is not confident it can complete additional successful investments in the region, and therefore has concluded to wind down its activities.
Host Hotels & Resorts, Inc. (Host Inc.) operates as a self-managed and self-administered real estate investment trust (REIT). Host Inc. owns properties and conducts operations through Host Hotels & Resorts, L.P.
Shares of Exelixis, Inc. (NASDAQ:EXEL), declined -4.23% to $5.66, during its last trading session.
Exelixis declared positive results from METEOR, the phase 3 pivotal trial comparing cabozantinib to everolimus in 658 patients with renal cell carcinoma (RCC) who have practiced disease progression following treatment with a VEGF receptor tyrosine kinase inhibitor (TKI). In July 2015, Exelixis revealed that the trial met its primary endpoint, demonstrating a statistically noteworthy improvement in progression-free survival for patients in the cabozantinib arm. Principal investigator Toni K. Choueiri, M.D. will present detailed data from the late-breaking METEOR abstract (#4-LBA) on Saturday, September 26, during the Presidential Session I at the European Cancer Congress (ECC) 2015, which is being held September 25-29 in Vienna. The METEOR data and an accompanying editorial were also published recently in The New England Journal of Medicine.
As declared in July, the METEOR trial met its primary endpoint of demonstrating a statistically noteworthy improvement in progression-free survival (PFS) for cabozantinib as contrast to everolimus, as determined by an independent radiology committee. Per the trial protocol, the primary analysis was conducted among the first 375 patients randomized to ensure sufficient follow up and a PFS profile that would not be primarily weighted toward early events. The median PFS was 7.4 months for the cabozantinib arm as compared to 3.8 months for the everolimus arm, corresponding to a 42% reduction in the rate of disease progression or death for cabozantinib as contrast to the everolimus arm (hazard ratio [HR]=0.58, 95% confidence interval [CI] 0.45-0.75, p<0.001). Cabozantinib effects were favorable across patient stratification subgroups counting the number of prior VEGF receptor TKI therapies and commonly applied RCC risk criteria developed by Motzer et al.
In a post-hoc subset analysis of patients who had received sunitinib, the most commonly used first-line therapy, as their only prior VEGF receptor TKI, the median PFS for cabozantinib-treated patients (n=76) was 9.1 months as compared to 3.7 months for everolimus-treated patients (n=77). This corresponds to a 59% reduction in the rate of disease progression or death for patients treated with cabozantinib (HR=0.41, 95% CI 0.28-0.61).
Exelixis Inc. is a biopharmaceutical company. The Company is engaged in developing small molecule therapies for the treatment of cancer. The Company is focusing on resources development and commercialization of COMETRIQ (cabozantinib) for the treatment of progressive, metastatic medullary thyroid cancer (MTC) in the United States.
Finally, Energy Transfer Partners LP (NYSE:ETP), ended its last trade with -7.68% loss, and closed at $39.65.
Energy Transfer Equity, and The Williams Companies, declared a business combination transaction valued at about $37.7 billion, counting the assumption of debt and other liabilities. This declaration follows the termination of the formerly agreed merger agreement between WMB and Williams Partners L.P. (“WPZ”). The business combination between ETE and WMB was approved by the Boards of Directors of both entities. The combination will create the third largest energy franchise in North America and one of the five largest global energy companies. The combination will also benefit customers by enabling further investments in capital projects and efficiencies that would not be achievable absent the transaction.
Under the terms of the transaction, Energy Transfer Corp LP (“ETC”), an associate of ETE, will acquire Williams at an implied current price of $43.50 per Williams share. Williams’ stockholders will have the right to elect to receive as merger consideration either ETC common shares, which would be publicly traded on the NYSE under the symbol “ETC”, and / or cash. Elections to receive ETC common shares and cash will be subject to proration. Cash elections will be prorated to the extent they exceed $6.05 billion in the aggregate and stock elections will be prorated to the extent the full $6.05 billion cash pool is not utilized. Williams stockholders electing to receive stock consideration will receive a fixed exchange ratio of 1.8716 ETC common shares for each share of WMB common stock, before giving effect to proration. If all Williams’ stockholders elect to receive all cash or all stock, then each share of Williams common stock would receive $8.00 in cash and 1.5274 ETC common shares. In addition, WMB stockholders will be entitled to a special one-time dividend of $0.10 per WMB share to be paid right away before the closing of the transaction. The special one-time dividend is in addition to the regularly planned WMB dividends to be paid before closing.
ETC will be treated as a corporation for U.S. federal income tax purposes, and holders of ETC common shares will therefore receive an IRS Form 1099, rather than a Plan K-1, for federal income tax reporting. As part of this transaction, in exchange for the contribution by ETC to ETE of all of the assets and liabilities of WMB, ETE will issue to ETC a number of ETE Class E common units equal to the number of ETC common shares to be issued in the transaction. The Class E common units will be entitled to receive the same quarterly cash distribution per unit as the quarterly cash distribution per ETE common unit. As ETE has agreed to provide all administrative services to ETC and to indemnify ETC for all liabilities incurred by ETC, ETC is predictable to distribute 100% of the after-tax cash distributions it receives from ETE to holders of ETC common shares on a quarterly basis as a cash dividend. ETC will benefit from a dividend equalization agreement through calendar 2018 with ETE that ensures that ETC shareholders will receive the identical cash dividend as an ETE unit holder.
Energy Transfer Partners, L.P. is a master limited partnership. The Company’s operating segments include Intrastate Transportation and Storage segment; Interstate Transportation and Storage segment; Midstream segment; Liquids Transportation and Services segment; Investment in Sunoco Logistics segment; Retail Marketing segment and All Other segment.
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