Friday, September 17, 2010

Day Trader's Alert: CRXL, ARNA, ALKS

Johnson & Johnson (NYSE: JNJ) and Crucell N.V. (NASDAQ: CRXL) today announced that they are in advanced negotiations for a potential public offer by Johnson & Johnson or an affiliate for all outstanding ordinary shares of Crucell not already held by Johnson & Johnson and its affiliates. Johnson & Johnson, through an affiliate, currently holds approximately 17.9 percent of the outstanding shares of Crucell and has submitted a statement on Schedule 13D to the U.S. Securities and Exchange Commission in connection with its change in investment intent with respect to Crucell. Under the terms of the negotiations, which are at an advanced stage, Johnson & Johnson or an affiliate would acquire all outstanding equity of Crucell that it does not already own for approximately EUR1.75 billion, which represents a purchase price of EUR24.75 per share. The public offer would be an all cash transaction. Shares of Crucell surged more than 55% in pre-market trading.

Shares of Arena Pharmaceuticals, Inc. (NASDAQ: ARNA) slumped as much as 45% after it announced  that the US Food and Drug Administration (FDA) Endocrinologic and Metabolic Drugs Advisory Committee voted 9 to 5 that the available data do not adequately demonstrate that the potential benefits of lorcaserin outweigh the potential risks, when used long-term in a population of overweight and obese individuals to allow marketing approval. Lorcaserin, which Arena discovered and has developed, is intended for weight management, including weight loss and maintenance of weight loss, in patients who are obese (Body Mass Index, or BMI, >30) or patients who are overweight (BMI >27) and have at least one weight-related co-morbid condition.

Shares of Alkermes, Inc. (NASDAQ: ALKS) jumped more than 5% after it announced today that the U.S. Food and Drug Administration (FDA) Psychopharmacologic Drugs Advisory Committee voted 12 to 1 that VIVITROL(R) (naltrexone for extended-release injectable suspension) should be approved for the treatment of opioiddependence. "The Advisory Committee meeting outcome today underscores the strength of the clinical data for VIVITROL and the need for new treatment options," said Richard Pops, Chief Executive Officer of Alkermes. "We believe that, if approved, VIVITROL would offer a new path to recovery as the first non-addictive, once-monthly medication for patients with opioid dependence." 

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