=Juno Therapeutics (Juno) to be acquired by Celgene (CELG) for $87/share

Juno Therapeutics to be acquired by Celgene (CELG) for $87/share in cash, or approximately $9 bln

Under the terms of the merger agreement, Celgene will pay $87 per share in cash, or a total of approximately $9 billion, net of cash and marketable securities acquired and Juno shares already owned by Celgene (approximately 9.7% of outstanding shares).

• JCAR017, a pivotal stage asset, with an emerging favorable profile in DLBCL, is expected to add approximately $3 billion in peak sales and significantly strengthen Celgene's lymphoma portfolio
• JCARH125 will enhance Celgene's campaign against BCMA (B-cell maturation antigen), a key target in multiple myeloma
• Additional cellular therapy assets in proof-of-concept trials for hematologic malignancies and solid tumors will add to Celgene's existing pipeline

The acquisition is expected to be dilutive to adjusted EPS (earnings per share) in 2018 by approximately $0.50 and is expected to be incrementally additive to net product sales in 2020. There is no change to the previously disclosed 2020 financial targets of total net product sales of $19 billion to $20 billion and adjusted EPS greater than $12.50. 

=Juno Therapeutics (JUNO) to be acquired by Celgene (CELG)?

• Celgene is looking to purchase Juno Therapeutics, just one week after it announced that it was taking over Impact Biomedicines in a $7 billion transaction.
• More M&A deals like this are expected due to the tax code enticing U.S.-based companies to bring back cash from abroad.
• Joint ventures are also in the works. Celgene (NASDAQ: CELG) recently worked out a deal with Lannett (NYSE: LCI), a Northeast Philadelphia drug manufacturer that has an application to sell a generic version of a drug that uses thalidomide to treat inflammatory skin disorders.

According to the Wall Street Journal, unnamed sources say Celgene is in talks to buy Juno. The two have long-partnered on cancer treatments including CAR-T drugs that teach the immune system to identify and fight cancer.

The talks could pan out in a deal in the coming weeks, sources say. The potential deal to acquire Juno would come on the heels of Gilead Sciences' (GILD) nearly $12 billion purchase of CAR-T drugmaker Kite Pharma late last year.

Now, Gilead and Novartis (NVS) have the only approved CAR-T drugs on market. Juno could follow with a CAR-T drug approval later this year, the company has said. So far, CAR-T drugs look best poised to treat blood cancers. Firms are also looking into using these therapies in solid tumors.

For Gilead, buying Kite helps stem the gap from declining hepatitis C drug sales. For Celgene, buying its longtime partner Juno could give it a leg up as it prepares to lose patient protection for Revlimid, which treats a blood cancer known as multiple myeloma.

-=Juno Therapeutics (JUNO) reported earnings on Wed 1 Nov 2017 (a/h)

Juno Therapeutics beats by $0.07, beats on revs

• Reports Q3 (Sep) loss of $0.73 per share, $0.07 better than the Capital IQ Consensus of ($0.80); revenues rose 115.4% year/year to $44.8 mln vs the $18.12 mln Capital IQ Consensus.
• Juno expects to be in the lower half of 2017 cash burn guidance, which is cash used in operating activities and capital expenditures, excluding cash inflows or outflows from upfront payments related to business development activities, of between $270 million and $300 million.
• Cash, cash equivalents, and marketable securities as of September 30, 2017 were $1.06 billion compared to $801.8 million as of June 30, 2017, and $922.3 million as of December 31, 2016.

Clinical Update:

• Presentations at ASH will include data from the ongoing Phase I TRANSCEND study in patients with relapsed or refractory (r/r) aggressive B-cell NHL who were treated with fludarabine/cyclophosphamide lymphodepletion and JCAR017.
• New data will be available at multiple presentations, including an oral presentation on Monday, December 11 that will include information on safety and responses.
• Ongoing enrollment for the pivotal cohort of the TRANSCEND trial at DL2 with BLA filing expected to be completed in the second half of 2018 and with approval as early as 2018. 

=Long trade : JUNO +45% (8/17)

• 8/23:  #4  vol. 1.6 M
• 8/22:  #4, 94  vol. 1.0 M  +50%
• 8/24:  #4,  vol. 1.5 M

=Juno Therapeutics (JUNO) reported earnings on Wed 1 March 17 (a/h)

Juno Therapeutics beats by $0.01, beats on revs:

• Reports Q4 (Dec) loss of $0.65 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of ($0.66); revenues rose 409.6% year/year to $21.15 mln vs the $14.56 mln Capital IQ Consensus.
  • Cash burn in the fourth quarter of 2016, excluding cash inflows and outflows from business development activities, was $106.6 million including $38.4 million for the purchase of property and equipment, of which $18.2 million was for the purchase of Juno's manufacturing facility.
• Pivotal trial for JCAR017 in r/r DLBCL expected to start in 2017.
• Discontinuing development of JCAR015 in r/r adult ALL to focus on defined cell product in this setting.
• Phase I JCAR017 demonstrates 80% overall response and 60% complete response in r/r DLBCL.
• FY17 guidance:
  • 2017 cash burn guidance of $270 million to $300 million, including $22 million to $27 million in capital expenditures.
  • Operating burn estimated to be between $245 million and $275 million.

JUNO — is it a buy?

• Dec. 16:  Is JUNO a buy?

This week's biggest % winners & losers: Nov 21 - 25, 2016 (wk 47)

The following are this week's top 20 percentage gainers and top 20 percentage losers, categorized by sectors (over $300 mln market cap and 100K average daily volume).

This week's top 20 % gainers

• Materials:CLF (9.88 +33.27%),HBM (7 +22.81%),PPP (0.91 +19.05%),HW (23.71 +18.02%),AKS (9.38 +17.79%),FCX (15.99 +16.46%),VALE (8.43 +16.44%),SID (3.72 +16.09%),TMST (15.67 +15.22%),
• Industrials:IIIN (42.14 +25.8%),DE (104.24 +13.36%),GFF (24.15 +13.11%),
• Consumer Discretionary:KNDI (4.7 +28.77%),CAL (33.03 +19.16%),LOCK (23.97 +15.49%),BURL (88.71 +13.82%),
• Information Technology:SFUN (3.44 +20.28%),AMCC (8.45 +16.55%),
• Financials:FNBC (7.38 +17.06%),LFC (14.61 +13.83%),

This week's top 20 % losers

• Healthcare: JUNO (22.77 -23.92%),CXRX (2.52 -23.45%),HRTX (15.6 -17.89%),PDLI (2.54 -16.61%),PDCO (38.92 -16.28%),SGMO (3.47 -13.36%),QHC (6.13 -12.18%),NVCR (8.75 -12.06%),MNKD (0.56 -10.08%),LLY (69 -10%),
• Industrials:DY (75.54 -17.72%),
• Consumer Discretionary:VIPS (12.03 -12.03%),URBN (33.63 -10.36%),
• Information Technology:NMBL (7.74 -16.83%),PANW (141.31 -12.42%),
• Energy:ENBL (14.62 -10.2%),ETP (35.36 -10.19%),
• Consumer Staples:CVGW (56.55 -12.93%),TSN (59.56 -11.58%),
• Utilities:FGP (6.51 -13.2%),

Juno Therapeutics (JUNO) reported earnings on Tue 22 Nov 2016 (a/h)

** charts before earnings **

 

** charts after earnings **

JUNO — is it a buy?

Sept. 27: Is JUNO a buy?

Juno Therapeutics (JUNO) reported earnings on Mon 9 May 2016 (a/h)

** charts before earnings **

 

** charts after earnings **

 

Juno Therapeutics misses by $0.26, beats on revs; reaffirms cash burn guidance :

• Reports Q1 (Mar) loss of $0.78 per share, excluding non-recurring items, $0.26 worse than the Capital IQ Consensus of ($0.52); rev $9.8 mln vs. $3.2 mln consensus.
• -- JuMP manufacturing facility operational for JCAR015 Phase II ROCKET trial
• Reaffirm: Juno expects 2016 cash burn, excluding cash inflows or outflows from business development activities, to be between $220 million and $250 million. Operating burn estimated to be between $170 million and $195 million.

Great trade : JUNO (6/15)