Approvals Significantly Expand Manufacturing Capacity for Heparin

APP Pharmaceuticals, Inc. (APPX)

Q2 2008 Earnings Call Transcript

Complete Story »

You may not get it, but it may not matter.

Visit StreetInsider.com at http://www.streetinsider.com/news.php?st=p&id=3868023 for the full story.

These seven companies have the urge to merge. Which deals will be the ones to work out?

Sell off the spin-off for more than the company was worth before the breakup.

APP Pharmaceuticals, Inc. (APPX) - Fresenius, Allied Waste Industries (AW) - Republic Services, Inc. (RSG), Alpha Natural Resources, Inc. (ANR) - Cleveland-Cliffs Inc (CLF)[More...]

Filed under: Deals

It's been a good year for APP Pharmaceuticals Inc. (NASDAQ: APPX), as the stock price has climbed from $10 to $23.50. Today there was some extra good news: Fresenius SE, the largest intravenous drug developer in Europe, has agreed to shell out $3.7 billion for the company (there will also be $940 million in assumed debt). In today's trading, APP's stock is up 32%.

It's a great day for Soon-Shiong who founded APP in 1996 and still owns a whopping 80% of the company.

APP is a leader in developing generic injectable pharma products, such as for acute care and specialty clinic applications. In the company's latest quarterly report, revenues increased 6% to $148.1 million and adjustable net income was $22 million, or $0.14 per share. What's more, the company received final FDA approval on four products: Polymixin B Sulfate, Caffeine Citrate Oral Solution and Irinotecan Hydrochloride. There was also a product launch for Cefepime Hydrochloride.

However, investors of Fresenius aren't so happy. The company's shares dropped about 10% in Germany. Essentially, there are concerns about valuation as well as the ability to finance the deal, which will involve mostly debt. Yet, if Fresenius wants to enter the U.S. market, it really has no choice but to pay a premium.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

Permalink | Email this | Comments

Earlier today, Fresenius SE (FRE3:GY) announced that it was buying APP Pharmaceuticals (APPX) for $4.6 billion, or around $23 a share. The deal represented a substantial premium — just shy of 30% — over where APP’s shares closed on Thursday, before the markets closed for the July 4 holiday. But what’s really interesting is this 8K [...]

Filed under: Before the bell, Analyst reports, Analyst upgrades and downgrades, Deals, Apple Inc (AAPL), Walt Disney (DIS), Merrill Lynch (MER), Merck and Co (MRK), News Corp'B' (NWS)

Before the bell: Futures mixed as oil drops, ahead of earnings season kickoff

According to the New York Post Friday, Merrill Lynch (NYSE: MER) is in talks to sell its 20% stake in Bloomberg L.P. back to New York City Mayor Michael Bloomberg. The post cited anonymous sources. But Merrill will likely not end its cash raising efforts there and could also try to sell its 49% stake in investment manager BlackRock ( NYSE: BLK). Selling different assets, could bring some $50 billion to cash-strapped Merrill.

APP Pharmaceuticals (NASDAQ: APPX) shares are up nearly 32% to $23.50 in premarket trading after Germany's health-care giant Fresenius said it's going to buy it for up to $4.6 billion, or $29 a share, depending if certain financial targets are met. This marks Fresenius attempt to enter the U.S. market.

Apple Inc. (NASDAQ: AAPL) is set to launch its next generation iPhone Friday. The 3G, or third-generation, phone will be cheaper and faster than its predecessor and could expand Apple's reach to many more countries that rely on that technology. Apple has set a target to sell 10 million iPhones in 2008, and already sold 1.79 million in the first quarter. Analysts have so far kept their target on Apple, such as Lehman reiterating its Overweight on the stock.

Continue reading Before the bell: MER, APPX, AAPL, MRK, DIS, NWS

Permalink | Email this | Comments

Filed under: Before the bell, Time Warner (TWX), Teva Pharm Indus ADR (TEVA)

APP Pharmaceuticals (NASDAQ:APPX) is up over 30% on a buy-out offer from Fresenius.

Time Warner (NYSE:TWX) is up almost 2% after positive comments in Barron's.

Teva Pharmaceutical (NASDAQ:TEVA) is off 6% on news that one of its drug trials went poorly.

UBS (NYSE:UBS) is down over 5% on concerns that the bank will report large write-offs for the last quarter.

Stocks made trade differently in the pre-market than they do in the regular session.

Douglas A. McIntyre is an editor at 247wallst.com.

Permalink | Email this | Comments