This week's biggest % winners & losers: Sept 14 - 18, 20 (wk 38)

This week's biggest % gainers/losers The following are this week's top percentage gainers and losers, categorized by sectors (over $300 mln market cap and 100K average daily volume).

This week's top % gainers

• Healthcare: IMMU (85.53 +102.44%), INO (17 +68.65%), ADAP (10.43 +31.36%), UBX (3.84 +30.61%), ARWR (43.1 +29.78%)
• Industrials: MLHR (34.52 +52.14%), TGI (9.24 +42.15%), EAF (8.22 +30.68%), KNL (14.46 +28.08%), BE (17.23 +27.91%)
• Consumer Discretionary: QRTEB (11.38 +88.63%), SGMS (32.96 +73.75%), GME (9.47 +55.5%)
• Energy: BTU (4.07 +39.86%), EXTN (5.54 +36.45%), NINE (1.5 +35.14%), ARCH (52.9 +29.91%), KOS (1.31 +28.43%)

This week's top % losers

• Healthcare: CYRX (46.03 -17.96%), ILMN (295.5 -15.55%)
• Materials: LOMA (4.22 -15.43%)
• Industrials: ADT (8.72 -20.37%)
• Consumer Discretionary: GTX (2.01 -36.19%), AXL (5.84 -22.03%), GRPN (26.05 -19.57%), FRGI (9.83 -14.74%), CUK (12.45 -13.9%), CBRL (118.28 -13.53%)
• Information Technology: MTLS (33.15 -18.43%)
• Financials: GSHD (78.59 -20.5%), GGAL (7.86 -19.3%), SUPV (2.05 -19.29%), BMA (15.32 -14.89%)
• Energy: OMP (7.58 -15.02%)

-==Immunomedics (IMMU) to be acquired by Gilead (GILD) for $88.00 per share in cash

Gilead Sciences (GILD) and Immunomedics (IMMU) announced that the companies have entered into a definitive agreement pursuant to which Gilead will acquire Immunomedics for $88.00 per share in cash. The transaction, which values Immunomedics at approximately $21 billion, was unanimously approved by both the Gilead and Immunomedics Boards of Directors and is anticipated to close during the fourth quarter of 2020.

Under the terms of the merger agreement, a wholly-owned subsidiary of Gilead will promptly commence a tender offer to acquire all of the outstanding shares of Immunomedics' common stock. The $88.00 per share acquisition price represents a 108 percent premium to Immunomedics' closing price on September 11, 2020. Following successful completion of the tender offer, Gilead will acquire all remaining shares not tendered in the offer through a second step merger at the same price as the tender offer.

The consummation of the tender offer is subject to various conditions, including a minimum tender of at least a majority of outstanding Immunomedics shares, the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and other customary conditions.

The tender offer is not subject to a financing condition and will be funded through approximately $15 billion in cash on hand, as well as approximately $6 billion in newly issued debt. Gilead expects to retain an investment grade credit rating following this transaction and this agreement does not alter Gilead's stated capital allocation strategy or its commitment to maintain and grow its dividend over time.

=Immunomedics (IMMU) : cancer treatment fails to win accelerated approval from the FDA

Immunomedics receives complete response letter from the FDA for Sacituzumab Govitecan BLA 

(Reuters) - Immunomedics Inc said on Thursday the U.S. Food and Drug Administration declined to grant accelerated approval for its breast cancer treatment, sacituzumab.

The company said it will request a meeting with the agency and work closely with the health regulator in its effort to launch the treatment as soon as possible.

"The issues related to approvability in the CRL (complete response letter) were exclusively focused on Chemistry, Manufacturing and Control matters and no new clinical or preclinical data need to be generated," Immunomedics Chief Executive Officer Michael Pehl said.

Long trade : IMMU +30% (8/17)

• 8/21:  #3, 85   vol 4.0 M

• 8/31, six days later:

 

Immunomedics (IMMU) reported earnings on Thur 9 Feb 2017 (a/h)

** charts after earnings **

 

• Immunomedics reports 2Q loss
• Immunomedics enters into exclusive global licensing agreement with Seattle Genetics (SGEN); agreement provides for potential payments of approximately $2 bln, SGEN to purchase 3 mln shares of IMMU common stock at $4.90/share

MORRIS PLAINS, N.J. (AP) _ Immunomedics Inc. (IMMU) on Thursday reported a loss of $24.4 million in its fiscal second quarter.

On a per-share basis, the Morris Plains, New Jersey-based company said it had a loss of 23 cents. Losses, adjusted for non-recurring costs, were 16 cents per share.

The biopharmaceutical company posted revenue of $384,200 in the period. Its adjusted revenue was $384,000.

In the final minutes of trading on Thursday, the company's shares hit $4.30. A year ago, they were trading at $2.07.

*****

Immunomedics enters into exclusive global licensing agreement with Seattle Genetics (SGEN); agreement provides for potential payments of approximately $2 bln, SGEN to purchase 3 mln shares of IMMU common stock at $4.90/share:

Under the agreement, Seattle Genetics will develop, fund, manufacture and commercialize IMMU-132, Immunomedics' proprietary solid tumor therapy candidate. The agreement also provides that Seattle Genetics will be responsible for initiating the Phase 3 clinical trial of IMMU-132 in patients with metastatic triple-negative breast cancer and submitting the initial Biologics License Application to the U.S. Food and Drug Administration for accelerated approval. The agreement includes the development of additional indications for IMMU-132, including urothelial cancer, small-cell lung cancer and non-small-cell lung cancer, which are currently in Phase 2 clinical studies, along with other solid tumor indications being studied in ongoing clinical trials.

• The agreement provides for potential payments of approximately $2 billion across multiple indications, plus double-digit tiered royalties on global net sales. Under the terms of the agreement, Immunomedics will receive $250 million in upfront cash payment, plus, among other milestone payments, an additional $50 million (or negotiated economic splits) relating to rights outside the U.S., Canada and the EU. The remainder of the consideration comprises approximately $1.7 billion that is contingent upon achieving certain clinical, development, regulatory and sales milestones, including an anticipated near-term milestone for acceptance of the Biologics License Application (:BLA) by the U.S. Food and Drug Administration for TNBC, additional milestones based on regulatory approval of IMMU-132 for TNBC in the U.S. and other territories, and future development and regulatory milestones for additional indications beyond TNBC. Future royalty payments are tiered double-digit royalties based on global net sales. In addition, Immunomedics will retain the right to elect to co-promote IMMU-132 in the United States by participating in 50% of the sales effort, subject to certain parameters set forth in the agreement.
• Under the terms of the agreement, for a limited period, through February 19, 2017, Immunomedics has the right to continue negotiating with a select number of parties still in the strategic process, and accept a superior proposal. Seattle Genetics has the right to match any superior proposal and if it decides not to match, Immunomedics has the right to accept the superior proposal and terminate the proposed development and license agreement upon payment of a termination fee to Seattle Genetics.
• Concurrent with the transaction, Seattle Genetics is purchasing 3,000,000 shares of common stock, representing an approximately 2.8% stake in Immunomedics, at a per share price of $4.90, which represents a 10% premium to Immunomedics' 15-day trading volume weighted average stock price of $4.45 for the period ending at the close of trading February 9, 2017, the last trading day prior to entering into the global licensing agreement.Seattle Genetics will also be issued a three-year warrant to purchase 8,655,804 shares of common stock at the same price, which shall be exercisable when the Company has sufficient authorized shares of common stock to enable the exercise of the warrant. Seattle Genetics will not be eligible to vote its stake at the upcoming 2016 Annual Meeting of Stockholders.

Immunomedics expects that the transaction will fulfill its liquidity needs such that the Company can fund itself without additional equity raises for the foreseeable future. The companies expect the transaction to close in the first quarter of 2017.