=Tesaro (TSRO) to be acquired by GSK (GSK) for $75/share

Tesaro to be acquired by GSK (GSK) for $75/share in cash, or approximately $5.1 bln

• GSK expects the acquisition of TESARO and associated R&D and commercial investments will impact Adjusted EPS for the first two years by mid to high single digit percentages, reducing thereafter with the acquisition expected to start to be accretive to Adjusted EPS by 2022. GSK's guidance for full-year 2018 Adjusted EPS growth remains unchanged at 8 to 10% at CER. GSK continues to expect to deliver on its previously published Group Outlooks to 2020, but following the acquisition of TESARO now expects Adjusted EPS growth at CER for the period 2016-2020 to be at the bottom end of the mid to high single digit percentage CAGR range.
• GSK confirms no change to its current dividend policy and continues to expect to pay 80p in dividends for 2018.
• The transaction is expected to complete in the first quarter of 2019, subject to satisfaction of customary closing conditions, including the tender by TESARO stockholders of at least one share more than 50% of the issued and outstanding shares of TESARO and required regulatory approvals, including clearance by the US Federal Trade Commission.

=Tesaro (TSRO) reported earnings on Thur 1 Nov 2018 (a/h)

Tesaro beats by $0.04, misses on revs; raises low-end of FY18 revs guidance

WALTHAM, Mass. (AP) _ Tesaro Inc. (TSRO) on Thursday reported a loss of $137.1 million in its third quarter.

The Waltham, Massachusetts-based company said it had a loss of $2.49 per share.

The results topped Wall Street expectations. The average estimate of 11 analysts surveyed by Zacks Investment Research was for a loss of $2.62 per share.

The biopharmaceutical company posted revenue of $64.4 million in the period, which missed Street forecasts. Nine analysts surveyed by Zacks expected $69.5 million.

Tesaro expects full-year revenue in the range of $258 million to $265 million.

Tesaro shares have declined 62 percent since the beginning of the year. In the final minutes of trading on Thursday, shares hit $31.88, a decrease of 72 percent in the last 12 months.

Reports Q3 (Sep) loss of $2.49 per share, $0.04 better than the S&P Capital IQ Consensus of ($2.53); revenues fell 54.9% year/year to $64.4 mln vs the $71.84 mln S&P Capital IQ Consensus.

Co raises guidance for FY18, sees FY18 revs of $258-265 mln (Prior $250-265 mln) vs. $258.59 mln S&P Capital IQ Consensus.

"Following results of the Phase 3 PRIMA trial next year, we intend for ZEJULA to benefit patients throughout all stages of their ovarian cancer journey, including first-line, recurrent, and late-line treatment settings. Our immuno-oncology pipeline continues to advance, led by our anti-PD-1 antibody, TSR-042, for which we are on track to submit a BLA next year. We look forward to initial data from the Phase 1 AMBER trial of our anti-TIM-3 antibody, TSR-022, in combination with TSR-042, which will be presented at the Society for Immunotherapy of Cancer (SITC) Annual Meeting next week."

Tesaro (TSRO) reported earnings on Tue 27 Feb 18 (a/h)

** charts before earnings **

 

** charts after earnings **

 

Tesaro misses by $0.97, misses on revs; guides FY18 revs below consensus 

• Reports Q4 (Dec) loss of $3.35 per share, $0.97 worse than the Capital IQ Consensus of ($2.38); revenues rose 876.0% year/year to $48.02 mln vs the $53.17 mln Capital IQ Consensus.
• Upcoming milestones:
  • Ovarian Cancer Franchise:
    • Report TOPACIO platinum-resistant ovarian cancer data in 1H 2018
    • Report QUADRA data in 1H 2018 and submit sNDA in 2H 2018
  • Breast Cancer:
    • Report TOPACIO triple negative breast cancer data in 1H 2018
  • Lung Cancer:
    • Report initial data from lung cancer cohort of the GARNET trial of TSR-042 in NSCLC in 1H 2018
    • Initial data from Phase 2 JASPER study of niraparib in combination with an anti-PD-1 inhibitor to be available in 2H 2018
  • Immuno-oncology Portfolio:
    • Report initial data for the AMBER trial of TSR-022 in combination with TSR-042 in 2H 2018 and define development strategy
• Co issues downside guidance for FY18, sees FY18 revs of $310-345 mln vs. $375.76 mln Capital IQ Consensus Estimate.
• In addition, TESARO anticipates its cash and cash equivalents balance to decline by $150 million during the first quarter. Quarterly declines in cash and cash equivalents are expected to moderate over the course of 2018, and in the fourth quarter of 2018, the decline in cash and cash equivalents balance is expected to be approximately $75 million. The Company plans to draw $200 million in 2018 from its available term loan facility. TESARO anticipates year-end 2018 cash and cash equivalents to be approximately $400 million.