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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. Scalper1 News
Scalper1 News