==Shockwave Medical (SWAV) to be acquired by Johnson & Johnson (JNJ) for $335.00 per share in cash

• Johnson & Johnson has agreed to acquire Shockwave Medical Inc. in an all-cash deal with an enterprise value of about $13 billion, in a deal that will boost its share of the market for medical devices to treat heart disease.
 

ShockWave Medical: Johnson & Johnson (JNJ) will acquire all outstanding shares of Shockwave for $335.00 per share in cash

• Transaction Benefits - Accelerates sales growth: The acquisition of Shockwave accelerates Johnson & Johnson MedTech's ongoing efforts to increase its presence in high-growth markets with unmet need, while expanding its reach and scale globally. The proposed transaction adds a high-performing business in an underpenetrated category with a strong pipeline and an attractive growth and margin profile. The transaction is expected to accelerate revenue growth for both Johnson & Johnson and Johnson & Johnson MedTech. Shockwave is ultimately expected to become Johnson & Johnson MedTech's thirteenth priority platform, as defined by annual sales of at least $1 billion. Delivers immediate operational accretion: The transaction will be accretive to operating margin for both Johnson & Johnson and Johnson & Johnson MedTech. Johnson & Johnson expects the transaction to be operationally accretive upon closing, but considering the impact of financing costs, is expected to dilute adjusted earnings per share by approximately $0.10 in 2024 and approximately $0.17 in 2025.
• Under the terms of the agreement, Johnson & Johnson will acquire all outstanding shares of Shockwave for $335.00 per share in cash through a merger of Shockwave with a wholly owned Johnson & Johnson subsidiary. Johnson & Johnson expects to fund the transaction through a combination of cash on hand and debt. Johnson & Johnson expects to maintain a strong balance sheet and to continue to support its stated capital allocation priorities of R&D investment, competitive dividends, value-creating acquisitions and strategic share repurchases.
• Following the completion of the transaction, Shockwave will operate as a business unit within Johnson & Johnson MedTech, and financials will be reported within Johnson & Johnson MedTech's Cardiovascular portfolio, which was previously referred to as Interventional Solutions.
• The closing of the transaction is expected to occur by mid-year 2024 subject to the receipt of Shockwave's shareholder approval, as well as the receipt of applicable regulatory approvals and other customary closing conditions. Following completion of the transaction, Shockwave's common stock will no longer be listed for trading on the Nasdaq Global Select Market.

Johnson & Johnson (JNJ) drops 136-year old logo and renames Janssen

New Brunswick, New Jersey–based Johnson & Johnson (NYSE: JNJ) has replaced its 136-year-old logo — based on the signature of co-founder James Wood Johnson — with a “more modern logo and brighter red, keeping the iconic ampersand,” J&J CEO Joaquin Duato said today in a post on LinkedIn. The change is meant to call attention to J&J’s focus on innovative medicine and medtech, he said.

The Janssen Pharmaceutical Cos. of Johnson & Johnson, meanwhile, is from now on going as Johnson & Johnson Innovative Medicine, “leading where medicine is going by developing breakthrough treatments, discovering new pathways and modalities, and expanding access so patients receive optimal care,” Duato said.

Unusual Options Activity Wed 8/2/23

The following options are exhibiting notable trading, potentially indicating changing sentiment toward the underlying stocks, and/or potentially representing positioning for increased volatility.

Bullish Call Activity:

• CRWD Aug 160 calls are seeing interest with the underlying down 7% (volume: 2410, open int: 690, implied vol: ~61%, prev day implied vol: 47%). Co is expected to report earnings late August.
  
• JNJ Aug 172.5 calls (volume: 23.2K, open int: 1090, implied vol: ~21%, prev day implied vol: 18%). Health Canada authorizes TECVAYLI a First-in-class bispecific antibody for the treatment of patients with relapsed or refractory multiple myeloma. Co is scheduled to present at a conference on August 15. Co is expected to report earnings mid-October.
  

Bearish Put Activity:

• SQ Aug 72 puts are seeing interest with the underlying stock down 5% ahead of earnings tomorrow after the close (volume: 1920, open int: 260, implied vol: ~132%, prev day implied vol: 105%). 2K traded in a single transaction.
• GILD Aug 73 puts are seeing interest with the ahead of earnings tomorrow after the close  (volume: 2070, open int: 40, implied vol: ~54%, prev day implied vol: 47%).
  

Sentiment: The CBOE Put/Call ratio is currently: 0.84, VIX: (16.09, +2.16, +15.5%).
August 18 is options expiration -- the last day to trade August equity options.

Unusual Options Activity

The following options are exhibiting notable trading, potentially indicating changing sentiment toward the underlying stocks, and/or potentially representing positioning for increased volatility.

 

Bullish Call Activity:

• MRVL Mar 47.5 calls are seeing interest ahead of earnings tonight after the close (volume: 1770, open int: 40, implied vol: ~163%, prev day implied vol: 127%). Co is presenting at two conferences in March.
• MP Mar 35 calls are seeing interest with the underlying stock down 12% (volume: 1610, open int: 370, implied vol: ~59%, prev day implied vol: 52%). Co is expected to report earnings early May.
• SU Mar 37 calls (volume: 11.6K, open int: 10, implied vol: ~33%, prev day implied vol: 32%). 1700 contracts traded in a single transaction. Co is expected to report early May.
  

Bearish Put Activity:

• UPST Mar 16.5 puts are seeing interest with the underlying stock down 5% (volume: 3570, open int: 280, implied vol: ~112%, prev day implied vol: 101%). 1100 contracts traded in a single transaction. Co is expected to report earnings early May.
• JNJ Mar 150 puts (volume: 2150, open int: 220, implied vol: ~25%, prev day implied vol: 23%). Co is scheduled to present at two conferences in March. Co is confirmed to report earnings April 18 before the open.

CureVac (CVAC) and EU in advanced talks for 225 million Covid-19 vaccine doses

• CureVac has said its Covid-19 vaccine could be ready for the public by mid-2021

Shares of CureVac NV soared Thursday after the German biotech firm said it was in advanced talks for the supply of at least 225 million doses of a potential Covid-19 vaccine to EU member states.

CureVac said talks with the EC, the European Union’s executive arm, include an option to supply an additional 180 million doses, once the mRNA-based vaccine has proven to be safe and effective against Covid-19, bringing the total to up to 405 million doses.

The EC is also in talks with Johnson & Johnson (JNJ) and France’s Sanofi (SNY) for their vaccines under development. It also reached an agreement last week with AstraZeneca (AZN) to buy at least 300 million doses of its potential Covid-19 vaccine which it is developing with Oxford University.

CureVac (CVAC) is specializing in the messenger RNA technology that is the basis of many of the leading Covid-19 vaccine programs, including Moderna Inc. (MRNA) and BioNTech S.E. (BNTX).

“In the current pandemic, we are very pleased to further strengthen the European Commission’s endeavor to provide rapid access to a safe and effective vaccine against the Covid-19 virus across Europe and beyond,” Franz-Werner Haas, chief executive of CureVac said.

“Assuming positive results from our ongoing clinical trials and approval from the regulatory authorities, we are fully committed to ensure broad access to our vaccine,” he added.

Backed by Microsoft founder and billionaire Bill Gates, CureVac listed on the Nasdaq Stock Market on Aug. 14, raising $213 million.

In July, GlaxoSmithKline PLC (GSK) said it was taking a stake in CureVac, the latest move by a major drugmaker to boost capabilities to fight pandemics. FTSE 100-listed Glaxo said CureVac’s mRNA technology would complement its own capabilities as it inked a deal worth up to £866 million ($1.09 billion).

=Arrowhead (ARWR) enters into license and collaboration agreement with Janssen Pharmaceuticals (JNJ)

Arrowhead enters into license and collaboration agreement with Janssen Pharmaceuticals (JNJ) to develop and commercialize ARO-HBV, will receive $175 mln as an upfront payment & $75 mln investment at $23.00/share 

In addition, Arrowhead entered into a research collaboration and option agreement with Janssen to potentially collaborate for up to three additional RNA interference (RNAi) therapeutics against new targets to be selected by Janssen. The transactions have a combined potential value of over $3.7 billion for Arrowhead.

• Under the terms of the agreement, Arrowhead will receive $175 million as an upfront payment. Separately, Johnson & Johnson Innovation -- JJDC, Inc. (JJDC) will make a $75 million equity investment in Arrowhead at a price of $23.00 per share of Arrowhead common stock.
• Arrowhead is eligible to receive up to approximately $1.6 billion in milestone payments for the HBV license agreement, including a $50 million milestone payment linked to a Phase 2 study. Arrowhead is also eligible to receive approximately $1.9 billion in option and milestone payments for the collaboration agreement related to up to three additional targets. Arrowhead is further eligible to receive tiered royalties up to mid teens on product sales.

=Geron (GERN) : discontinuation of Imetelstat collaboration by Janssen (JNJ)

Geron announces discontinuation of Imetelstat collaboration by Janssen (JNJ)

• Janssen Biotech, Inc. (Janssen) announced today its decision not to continue the collaboration and license agreement with Geron Corporation for imetelstat. The decision not to continue the collaboration is the result of a strategic portfolio evaluation and prioritization of assets within the robust Janssen portfolio. Janssen will work with Geron to transition the imetelstat program back to the company. Patients currently enrolled in the ongoing imetelstat clinical trials will continue to be supported through the respective trial protocols, including treatment and follow-up.
• Patients currently enrolled in the ongoing imetelstat clinical trials in myelofibrosis (IMbark) and myelodysplastic syndromes (IMerge) will continue to be supported through the respective trial protocols, including treatment and follow-up.

As a result of the termination of the CLA and Geron's decision to continue the development of imetelstat independently, the Company has revised its financial projections and now anticipates 2018 operating expenses to be approximately $37 million (previously $30 million). The Company expects its operating expenses to increase as it hires additional personnel and external service providers to support the development of imetelstat. As of August 31, 2018, the Company had approximately $183 million in cash and marketable securities which is expected to be sufficient to support its plans to initiate the Phase 3 portion of IMerge in 2019.

-=Johnson & Johnson (JNJ) reported earnings on Tue 23 Jan 2018 (BMO)

Johnson & Johnson beats by $0.02, reports revs in-line; guides FY18 EPS above consensus, revs in-line 

• Reports Q4 (Dec) earnings of $1.74 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $1.72; revenues rose 11.5% year/year to $20.2 bln vs the $20.08 bln Capital IQ Consensus. Operational sales results increased 9.4% and the positive impact of currency was 2.1%. Domestic sales increased 9.8%. International sales increased 13.5%, reflecting operational growth of 9.0% and a positive currency impact of 4.5%. Excluding the net impact of acquisitions and divestitures, on an operational basis, worldwide sales for the fourth quarter of 2017 increased 4.2%, domestic sales increased 4.1% and international sales increased 4.3%.
  • Worldwide Consumer sales of $13.6 billion for the full-year 2017 represented an increase of 2.2% versus the prior year, consisting of an operational increase of 1.3% and a positive impact from currency of 0.9%. Domestic sales increased 2.7%; international sales increased 1.9%, which reflected an operational increase of 0.4% and a positive currency impact of 1.5%. Excluding the net impact of acquisitions and divestitures, on an operational basis, worldwide sales decreased 0.5%, domestic sales decreased 0.7% and international sales decreased 0.3%.
  • Worldwide Pharmaceutical sales of $36.3 billion for the full-year 2017 represented an increase of 8.3% versus the prior year with an operational increase of 8.0% and a positive impact from currency of 0.3%. Domestic sales increased 6.7%; international sales increased 10.8%, which reflected an operational increase of 10.1% and a positive currency impact of 0.7%. Sales included the impact of the acquisition of Actelion Ltd. which was completed in June 2017 and contributed 4.2% to worldwide operational sales growth.
  • Worldwide Medical Devices sales of $26.6 billion for the full-year 2017 represented an increase of 5.9% versus the prior year consisting of an operational increase of 5.7% and a positive currency impact of 0.2%. Domestic sales increased 4.5%; international sales increased 7.1%, which reflected an operational increase of 6.7% and a positive currency impact of 0.4%. Sales included the impact of the acquisition of Abbott Medical Optics which contributed 4.5%, to worldwide operational sales growth.
• Co issues guidance for FY18, sees EPS of $8.00-8.20, excluding non-recurring items, vs. $7.87 Capital IQ Consensus Estimate; sees FY18 revs of $80.6-81.4 bln vs. $80.71 bln Capital IQ Consensus Estimate. 

Achillion Pharma (ACHN) terminates collaboration for hepatitis C with JnJ's Janssen

 

** JNJ **

Achillion Pharma terminates Worldwide Collaboration for Hepatitis C With JnJ's Janssen 

• Achillion Pharmaceuticals (ACHN) announced that on Saturday, September 9, 2017, it received notice of termination of the worldwide license and collaboration arrangement on hepatitis C with Janssen Pharmaceuticals, one of the Janssen Pharmaceutical Companies of Johnson & Johnson (JNJ).
• The notice follows the decision by Janssen announced to discontinue the development of the investigational hepatitis C treatment regimen JNJ-4178, a combination of three direct acting antivirals: AL-335, odalasvir and simeprevir.
• Co states: "We are disappointed by Janssen's decision to discontinue HCV development given the positive data presented in phase 2a with JNJ-41781, demonstrating a 100% cure rate after only six weeks of therapy. While we believe that patients worldwide would benefit from convenient, short-duration therapies like JNJ-4178, we remain fully focused on advancing our factor D portfolio of complement alternative pathway inhibitors in areas where patient needs are greatest, and using our strong balance sheet of almost $370 million in cash and cash equivalents at June 30, 2017 to do so."
• Also during the second half of 2017, Achillion anticipates initiating patient dosing in two phase 2 trials of ACH-4471 for patients with low C3 levels due to C3G or IC-MPGN. The first is an open-label, 14-day trial expected to enroll up to 10 patients, while the second is a placebo-controlled, double-blinded six-month trial expected to enroll 20 patients.

** charts before guidance **

 

Johnson & Johnson (JNJ) reported earnings on Tue 18 Oct 2016 (b/o)

** charts after earnings **

Johnson & Johnson beats by $0.02, reports revs in-line; raises low end of FY16 EPS, in-line; reaffirms FY16 revs guidance  :

• Reports Q3 (Sep) earnings of $1.68 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $1.66; revenues rose 4.2% year/year to $17.82 bln vs the $17.74 bln Capital IQ Consensus. Operational sales results increased 4.3% and the negative impact of currency was 0.1%. Domestic sales increased 6.7%. International sales increased 1.5%, reflecting operational growth of 1.7% and a negative currency impact of 0.2%. Excluding the net impact of acquisitions, divestitures and hepatitis C sales, on an operational basis, worldwide sales increased 5.9%, domestic sales increased 7.3% and international sales increased 4.2%. Operations in Venezuela negatively impacted worldwide operational sales growth by 30 basis points, and international sales growth by 70 basis points.
• Co issues guidance for FY16, raises EPS to $6.68-6.73 from $6.63-6.73, excluding non-recurring items, vs. $6.69 Capital IQ Consensus Estimate; sees FY16 revs of $71.5-72.2 bln vs. $72.14 bln Capital IQ Consensus Estimate.  
• "Our third-quarter results reflect the success of our new product launches and the strength of our core businesses, driven by strong growth in our Pharmaceuticals business. With a number of regulatory approvals, several new drug application submissions and new breakthrough therapy designations from the FDA, we are increasingly confident in our pipeline expectation of filing 10 new pharmaceutical products between 2015 and 2019, each with revenue potential over $1 bln."
  • Worldwide Consumer sales of $3.3 bln for the third quarter 2016 represented a decrease of 1.6% versus the prior year, consisting of an operational increase of 0.1% and a negative impact from currency of 1.7%. Domestic sales increased 1.1%; international sales decreased 3.3%, which reflected an operational decrease of 0.6% and a negative currency impact of 2.7%.
  • Worldwide Pharmaceutical sales of $8.4 bln for the third quarter 2016 represented an increase of 9.2% versus the prior year with an operational increase of 9.0% and a positive impact from currency of 0.2%. Domestic sales increased 11.8%; international sales increased 5.4%, which reflected an operational increase of 5.0% and a positive currency impact of 0.4%.
  • Worldwide Medical Devices sales of $6.2 bln for the third quarter 2016 represented an increase of 1.1% versus the prior year consisting of an operational increase of 0.7% and a positive currency impact of 0.4%. Domestic sales increased 1.4%; international sales increased 0.7%, which reflected an operational decline of 0.2% and a positive currency impact of 0.9%.

Johnson & Johnson (JNJ) reported 4Q earnings on Tue 26 Jan 2016 (before open)

** charts after earnings **

  

Johnson & Johnson beats by $0.02, reports revs in-line; guides FY16 EPS above consensus, revs below consensus  :

• Reports Q4 (Dec) earnings of $1.44 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $1.42; revenues fell 2.4% year/year to $17.81 bln vs the $17.86 bln Capital IQ Consensus. Operational sales results increased 4.4% and the negative impact of currency was 6.8%. Domestic sales increased 8.0%. International sales decreased 11.7%, reflecting operational growth of 1.2% and a negative currency impact of 12.9%. Ex-acquisitions, divestitures and hepatitis C sales, on an operational basis, worldwide sales increased 7.8%, domestic sales increased 13.4% and international sales increased 2.9%.
  • Worldwide Consumer sales of $13.5 billion for the full-year 2015 represented a decrease of 6.8% versus the prior year, consisting of an operational increase of 2.7% and a negative impact from currency of 9.5%. Domestic sales increased 2.5%; international sales decreased 11.9%, which reflected an operational increase of 2.7% and a negative currency impact of 14.6%.
  • Worldwide Pharma sales of $31.4 billion for the full-year 2015 represented a decrease of 2.7% versus the prior year with an operational increase of 4.2% and a negative impact from currency of 6.9%. Domestic sales increased 5.2%; international sales decreased 12.0%, which reflected an operational increase of 3.0% and a negative currency impact of 15.0%.
  • Worldwide Medical Devices sales of $25.1 billion for the full-year represented a decrease of 8.7% versus the prior year consisting of an operational decrease of 1.4% and a negative currency impact of 7.3%. Domestic sales decreased 1.0%; international sales decreased 14.8%, which reflected an operational decrease of 1.7% and a negative currency impact of 13.1%.
• Co issues guidance for FY16, sees EPS of $6.43-6.58, excluding non-recurring items, vs. $6.40 Capital IQ Consensus; sees FY16 revs +2.3-3.5% (operational) to $70.8-71.5 bln (+4.5-6% adj.) vs. $71.99 bln Capital IQ Consensus.