Advertisement
New Zealand markets closed

  • NZX 50

    11,946.43
    +143.15 (+1.21%)
     

  • NZD/USD

    0.5936
    +0.0002 (+0.03%)
     

  • NZD/EUR

    0.5542
    +0.0001 (+0.02%)
     

  • ALL ORDS

    7,937.50
    -0.40 (-0.01%)
     

  • ASX 200

    7,683.00
    -0.50 (-0.01%)
     

  • OIL

    82.84
    -0.52 (-0.62%)
     

  • GOLD

    2,328.90
    -13.20 (-0.56%)
     

  • NASDAQ

    17,526.80
    +55.33 (+0.32%)
     

  • FTSE

    8,040.38
    -4.43 (-0.06%)
     

  • Dow Jones

    38,460.92
    -42.77 (-0.11%)
     

  • DAX

    18,088.70
    -48.95 (-0.27%)
     

  • Hang Seng

    17,201.27
    +372.34 (+2.21%)
     

  • NIKKEI 225

    38,460.08
    +907.92 (+2.42%)
     

  • NZD/JPY

    92.1130
    +0.3470 (+0.38%)
     

Novo Nordisk Confirms Bid for Ablynx But Faces Rejection

Zacks Equity Research
Updated

Novo Nordisk NVO confirmed that it has made a revised offer to buy Belgian biotech company — Ablynx NV  — on Dec 22, for 2.6 billion euros ($3.1 billion). This includes a total cash consideration of EUR 28.00 per share and one Contingent Value Right ('CVR') with total potential cash payments over time of up to EUR 2.50 per share. The proposal values the Belgian company about 14% more than Novo Nordisk’s first proposal, which was made on Dec 7.

On Dec 7, Novo Nordisk first offered to acquire Ablynx in a deal worth EUR 26.75 per share in cash. However, the proposal was rejected by Ablynx's board of directors on Dec 14. On Dec 22, the company made a revised offer (as discussed above) but was again turned down by Ablynx's board the next day. In fact, the board of directors of Ablynx has so far declined to engage in any discussions despite Novo Nordisk’s repeated proposals.According to Ablynx, the proposal made by Novo Nordisk is not in the best interests of the former and fundamentally undervalues the company and its strong prospects for future growth.

While Ablynx soared above 45% on Jan 8 on takeout potential, Novo Nordiskslipped 0.09% on the same day.

Shares of Novo Nordiskhave have decreased 49.9% against the industry’s gain of 16.1% in the past one year.

Nevertheless, Novo Nordisk remains optimistic about the Ablynx acquisition. It believes that Ablynx’s lead pipeline candidate, caplacizumab, which is being evaluated for the rare bleeding disorder acquired thrombotic thrombocytopenic purpura (aTTP) might complement Novo's line-up of hemophilia products.

ADVERTISEMENT

Also, the company sees considerable opportunity in Ablynx’s other pipeline candidates and its nanobody platform.

Novo Nordisk A/S Price

 

Novo Nordisk A/S Price | Novo Nordisk A/S Quote

Zacks Rank & Key Picks

Novo Nordisk carries a Zacks Rank #2 (Buy). Some better-ranked health care stocks are Exelixis, Inc. EXEL, XOMA Corporation XOMA and Sucampo Pharmaceuticals SCMP. While Exelixis and XOMA sport a Zacks Rank #1 (Strong Buy), Sucampo carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Exelixis’earnings per share estimates have moved up from 72 cents to 73 cents for 2018 in the last 60 days. The company delivered a positive earnings surprise in all the last four quarters, with an average beat of 572.92%. Share price of the company surged 66.7% in 2017.

XOMA’s loss per share estimates have narrowed from $1 to 42 cents for 2018 in the last 60 days.  The company pulled off a positive earnings surprise in one of the last four quarters, with an average beat of 47.92%. Share price of the company skyrocketed 537.1% in 2017.

Sucampo’s earnings per share estimates have moved up from 3 cents to $1.12 for 2017 and from $1.15 to $1.19 for 2018 in the last 60 days. The company delivered a positive earnings surprise in three of the last four quarters, with an average beat of 15.63%. Share price of the company has surged 35.8% in 2017.

Zacks’ Best Private Investment Ideas

While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.

Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.

Click here for Zacks' private trades >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Novo Nordisk A/S (NVO) : Free Stock Analysis Report
 
XOMA Corporation (XOMA) : Free Stock Analysis Report
 
Exelixis, Inc. (EXEL) : Free Stock Analysis Report
 
Sucampo Pharmaceuticals, Inc. (SCMP) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research