CHICAGO, Sept. 12, 2014 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Mylan Inc. (Nasdaq:MYL-Free Report), Abbott Laboratories (NYSE:ABT-Free Report), Mallinckrodt (NYSE:MNK-Free Report), Gilead Sciences (Nasdaq:GILD-Free Report) and Baxter International Inc. (NYSE:BAX-Free Report).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Thursday's Analyst Blog:
Mylan to Acquire DVT Treatment Arixtra for $300M
Mylan Inc. (Nasdaq:MYL-Free Report) is set to acquire the U.S. commercialization, marketing and intellectual property rights to Arixtra injection from Aspen Global Incorporated for $225 million (initial payment). Mylan also acquired rights to the authorized generic version of Arixtra from Aspen.
Aspen is expected to receive another $75 million, which will be held in escrow, upon satisfaction of certain conditions. Arixtra is approved for the treatment of deep vein thrombosis (DVT), which may lead to pulmonary embolism (PE) in patients undergoing hip fracture surgery, including extended prophylaxis, hip replacement surgery, knee replacement surgery or abdominal surgery who are at risk of thromboembolic complications.
Aspen will supply the product and its authorized generics to Mylan under certain terms and conditions. The companies did not disclose any other details of the transaction. The deal is expected to be immediately accretive to Mylan's adjusted earnings.
Mylan currently sells Arixtra in the U.S. as per an interim distribution arrangement with Aspen. The authorized generics of Arixtra are however sold by Apotex. Apotex will be transferring the rights to Mylan Institutional by Dec 31, 2014. As per IMS Health, the U.S. sales of Arixtra and its authorized generic came in at $18.8 million and $95.3 million respectively for the 12 months ending Jun 30, 2014.
We are encouraged by the acquisition of Arixtra and its authorized generics. The company has been on an acquisition spree the last few months. In Jul 2014, Mylan inked a deal with Abbott Laboratories (NYSE:ABT-Free Report) to buy the latter's branded specialty and generics business in the ex-U.S. markets (read more: Mylan to Buy Abbott Generic Drug Unit).
Mylan carries a Zacks Rank #3 (Hold). Better-ranked stocks in the health care space include Mallinckrodt (NYSE:MNK-Free Report) and Gilead Sciences (Nasdaq:GILD-Free Report). Both the stocks hold a Zacks Rank #1 (Strong Buy).
Baxter Names Biopharma Spin-Off Baxalta
Baxter International Inc. (NYSE:BAX-Free Report) revealed that the name of its recently spun-off biopharmaceuticals business will be Baxalta Incorporated in order to retain the flavor of its parent company name.
In March this year, Baxter had announced plans to split-up its biopharmaceuticals and medical device segments into two independent companies in order to put greater management focus on the two businesses, effectively commercialize product offerings, efficiently allocate resources to high growth areas, and bring flexibility in deciding on growth and investment strategies.
The Two Businesses
Baxter's biopharmaceuticals/bioscience division will focus on immune deficiencies and blood-related disorders and includes the plan to form a partnership or sale of its drug development programs based on the flu and Lyme diseases.
Ludwig N. Hantson – the current president of BioScience division – will be named as the CEO of the new biopharmaceuticals company. Baxter director Wayne T. Hockmeyer will serve as non-executive chairman of the new unit.
BAX's medical products division manufactures intravenous (IV) solutions and administration sets, premixed drugs and drug-reconstitution systems, pre-filled vials and syringes for injectable drugs, IV nutrition products, infusion pumps, and inhalation anesthetics.
The medical products business contributed $8.7 million or 57% to BAX's overall revenues in 2013. The business will continue to integrate the $4 billion acquisition of Swedish dialysis maker Gambro AB, completed last September, which complements its existing renal therapies franchise.
BAX's current CEO and chairman, Robert L. Parkinson Jr., will lead the medical products business in the future, retaining its international name.
Baxter expects to complete splitting up the business in mid-2015. The transaction will take the form of a tax-free distribution to the company's shareholders of a new publicly traded stock in the new biopharmaceuticals company.
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