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Medivation Rises On Cancer Drug Data, AstraZeneca Buyout Rumor

Shares of drugmaker Medivation ( MDVN ) hit an eight-month high Monday after it reported successful early-stage cancer data as buyout rumors continued to circle the company. On Sunday at the annual meeting of the American Association for Cancer Research, Medivation said that its drug candidate talazoparib, combined with low-dose chemotherapy, produced a clinical benefit in 23 of 40 patients with heavily pretreated cancers. The company noted that four of seven patients with ovarian cancer showed objective responses, or tumor shrinkage. At the same time, the Times of London reported that big British pharma AstraZeneca ( AZN ) is said to be preparing a bid for Medivation , which currently holds a stellar IBD Composite Rating of 97 thanks to strong growth of its sole marketed product, prostate-cancer drug Xtandi. Late last month, Medivation reportedly hired bankers to deal with buyout attempts, and last week it was said to have rebuffed a bid from Sanofi ( SNY ). Medivation stock rose 4%, above 53, near midday trading on the stock market today . It hit 54.55 intraday. The last time it cracked 54 was back in early August, before biotech stocks crashed. IBD’s Take: How healthy is Medivation’s stock, and how does it stack up vs. rivals? Stifel analyst Thomas Shrader wrote that the latest cancer data will likely make Medivation play even harder to get. “It’s hard to draw too much out of such a small data set from a single center — but these data will only make the company less interested in being acquired without very significant upside to the current value of the Xtandi franchise and at least conditional upside to the current value of the talazoparib franchise,” Shrader wrote in a research note.

Valeant CEO Is Brave; Clovis PT Slashed; Buy Jazz ‘Aggressively’?

Drugmakers and biotechs were on the move Tuesday as Valeant Pharmaceuticals ( VRX ) CEO J. Michael Pearson finally agreed to attend a Senate deposition, and Clovis Oncology ( CLVS ) continued to tumble after an FDA panel didn’t back an accelerated approval for a lung cancer drug. Meanwhile, Jazz Pharmaceuticals ( JAZZ ) and Medivation ( MDVN ) rallied. Valeant CEO J. Michael Pearson said Wednesday he would comply with a congressional subpoena and testify before the Senate Special Committee on Aging on April 18. He didn’t show up to a hearing last week on drug pricing. Valeant shares inched up fractionally in the stock market today despite having  plunged 4% in late trading Tuesday  after the pharmaceutical giant said creditors had submitted a default notice over delays in its annual report. Valeant has until June 11 to file its 10-K annual report or face a default. But a default seems unlikely, as the company said it would file its 10-K by April 29. Clovis shares fell 9% on continued fallout from a Food and Drug Administration panel ruling Tuesday. The independent panel didn’t recommend that Clovis’ lung cancer drug, rociletinib, receive accelerated approval and said the FDA should wait for results from a late-stage trial before making a decision. Clovis lost 5.45% on Tuesday, 4.5% on Monday and 17.7% on Friday, when FDA staff released some documents ahead of the panel meeting. A similar drug from AstraZeneca ( AZN ) received accelerated approval last year. AstraZeneca shares rose 0.6%. Mizuho lowered Clovis’ price target to 15 from 21. Credit Suisse and JPMorgan both downgraded Clovis to neutral from overweight. JPMorgan cut its price target on the stock to 15 from 42 — and down from 110 last November Medivation jumped nearly 7% on takeover buzz. Late Tuesday,  Bloomberg reported that Medivation rejected a takeover attempt from France’s Sanofi ( SNY ). Sanofi is looking to expand its cancer treatment offerings but is currently embroiled in a whistleblower suit over alleged corporate kickbacks. Sanofi shares rose 0.9%. Jazz Pharmaceuticals shares jumped nearly 5% to 146.55, climbing over its 200-day moving average after Cowen released a note saying to “add aggressively” to Jazz positions after a ruling by the U.S. Patent and Trademark Office on Tuesday. The firm has a outperform rating and 190 price target on the stock.

Valeant Dives As Bondholder Seeks Default; Buyout Buzz Lifts Medivation

Valeant Pharmaceuticals ( VRX ) fell in late trade after Valeant said bondholders submitted a default notice, citing delays in the drugmaker’s annual report. Meanwhile, Medivation ( MDVN ) jumped late on a Bloomberg report , citing sources, that the drugmaker rejected a takeover overture from Sanofi ( SNY ). Valeant fell more than 6% in early after-hours action, pared losses to 4%. Shares closed up 2% at 31.99. Dow Jones, which initially reported the news, said Centerbridge Partners was a bondholder seeking the default notice. Valeant has until June 11 to file its 10-K annual report or be compelled to repay bonds early. Valeant has said it will file by April 29. Centerbridge, which holds some $250 million in Valeant debt, may be seeking concessions rather than a default. Meanwhile, Medivation jumped more than 9% after hours following a 1.1% gain to 45.73 at the close. Sanofi was little changed after hours. Sanofi hasn’t ruled out a hostile bid for Medivation, Bloomberg reported. Sanofi would like to expand its cancer drug portfolio. It was a wild day for some drugmakers. Horizon Pharmaceuticals ( HZNP ) dived 26%, close to its October lows. Horizon gave  weak sales guidance . Meanwhile, Clovis ( CLVS ) fell 5.4% to 14.24 after tumbling intraday to 12.25. An FDA advisory panel overwhelmingly opposed early approval for Clovis’  lung cancer drug, saying the agency should await phase 3 data for rociletinib. The stock had fallen 17.7% on Friday and 4.5% on Monday after the panel’s documents were released