AlphaSituations-Event/Catalyst Driven Research, AlphaSituations

Robert Sassoon

AlphaSituations-Event/Catalyst Driven Research

AlphaSituations

Since its establishment, AlphaSituations has delivered a track record of outperformance with a hit rate of winners of more than 70% of its portfolio of ideas generating annualized average returns of 20%. In January 2022, AlphaSituations was contracted by Water Tower Research, an investor engagement and stakeholder communication platform to provide coverage of Special Situations

Event-Driven

On September 13, 2020, <a href="https://www.smartkarma.com/entities/gilead-sciences-inc" target="_blank" data-smartkarma-citation="entities:973:1" rel="noopener">Gilead Sciences (GILD US)</a> announced that it had entered into a definitive agreement to acquire <a href="https://www.smartkarma.com/entities/immunomedics-inc" target="_blank" data-smartkarma-citation="entities:13913:1" rel="noopener">Immunomedics Inc (IMMU US)</a> in all cash transaction. Under the terms of the agreement, GILD will pay $88 for each IMMU share, valuing the clinical-stage biopharmaceutical company at ~$21BN,representing a 108% premium over IMMU's pre-announcement closing price.  To effect the acquistion of all of IMMU's outstanding equity, GILD  launched a tender offer (commenced on September 24, 2020) which is not subject to a financing condition and will be funded through ~$15BN in cash on hand, as well as ~$6BN in newly issued debt.  The deal is anticipated to close sometime during 4Q 2020, and possibly even by the end of October.While the jury will be out for a while on the long-term value impact of this particular deal for GILD, wiith little in the way of the transaction closing by year end or before, there is still something in it for abritrageurs with an attractive double-digit IRR opportunity still left on the table

On September 13, 2020, Gilead Sciences (GILD US) announced that it had entered into a definitive agreement to acquire Immunomedics Inc (IMMU US) in all cash transaction. Under the terms of the agreement, GILD will pay $88 for each IMMU share, valuing the clinical-stage biopharmaceutical company at ~$21BN,representing a 108% premium over IMMU's pre-announcement closing price.  To effect the acquistion of all of IMMU's outstanding equity, GILD  launched a tender offer (commenced on September 24, 2020) which is not subject to a financing condition and will be funded through ~$15BN in cash on hand, as well as ~$6BN in newly issued debt.  The deal is anticipated to close sometime during 4Q 2020, and possibly even by the end of October.While the jury will be out for a while on the long-term value impact of this particular deal for GILD, wiith little in the way of the transaction closing by year end or before, there is still something in it for abritrageurs with an attractive double-digit IRR opportunity still left on the table  

MergerTalk: Gilead Sciences Takeover Of Immunomedics -Still Something In It For The Arbitrageurs

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

On the 22 April this year, the FDA granted <a href="https://www.immunomedics.com/news-and-events/fda-grants-accelerated-approval-for-immunomedics-trodelvy-in-previously-treated-metastatic-triple-negative-breast-cancer" target="_blank" rel="noopener">accelerated approval</a> for Trodelvy, <a href="https://www.smartkarma.com/entities/immunomedics-inc" target="_blank" data-smartkarma-citation="entities:13913:1" rel="noopener">Immunomedics Inc (IMMU US)</a>'s first-in-class antibody-drug conjugate (ADC), for the treatment of patients with metastatic triple-negative breast cancer (mTNBC). Shares gained 19% to US$26.18/share, taking the one year gain to 57%.
(Triple-negative breast cancer is cancer that tests negative for estrogen receptors, progesterone receptors, and excess HER2 protein.)
On the <a href="https://www.immunomedics.com/news-and-events/immunomedics-announces-positive-results-from-phase-3-ascent-study-of-trodelvytm" target="_blank" rel="noopener">6 July</a>, Immunomedics reported that the phase 3 ASCENT study stopped early due to compelling efficacy after meeting primary and key secondary endpoints - Trodelvy "has set a new benchmark in scientific and clinical innovation for patients with mTNBC by offering a novel alternative to the common drugs currently in clinical practice". Shares cleared US$40/share and largely traded flat for the next 9 weeks.
On the 13 September, <a href="https://www.smartkarma.com/entities/gilead-sciences-inc" target="_blank" data-smartkarma-citation="entities:973:1" rel="noopener">Gilead Sciences (GILD US)</a> announced it had entered into a definitive agreement pursuant to which Gilead will acquire Immunomedics for $88.00/share in cash, a 108% premium to last close, in a US$20bn deal.
The tender offer is not subject to any financing condition with ~US$15bn of the funding from existing cash and ~US$6bn in newly issued debt.
Conditions to the tender offer are limited - valid tendering of 50% + one share, no MACs, and the waiting period applicable to the Offer under the HSR Act having expired or been terminated. 
The close of the tender is expected in 4Q20, subject to regulatory approval and other customary closing conditions.  Immunomedics' board unanimously supports the Offer.
Provided the Offer completes, a second-stage merger will be undertaken, which will dispense with the requirement for consent from Immunomedics shareholders.  Immunomedics will cease to be listed once the merger is consummated.
This looks done. As always, more below the fold.

On the 22 April this year, the FDA granted accelerated approval for Trodelvy, Immunomedics Inc (IMMU US)'s first-in-class antibody-drug conjugate (ADC), for the treatment of patients with metastatic triple-negative breast cancer (mTNBC). Shares gained 19% to US$26.18/share, taking the one year gain to 57%.
(Triple-negative breast cancer is cancer that tests negative for estrogen receptors, progesterone receptors, and excess HER2 protein.)
On the 6 July, Immunomedics reported that the phase 3 ASCENT study stopped early due to compelling efficacy after meeting primary and key secondary endpoints - Trodelvy "has set a new benchmark in scientific and clinical innovation for patients with mTNBC by offering a novel alternative to the common drugs currently in clinical practice". Shares cleared US$40/share and largely traded flat for the next 9 weeks.
On the 13 September, Gilead Sciences (GILD US) announced it had entered into a definitive agreement pursuant to which Gilead will acquire Immunomedics for $88.00/share in cash, a 108% premium to last close, in a US$20bn deal.
The tender offer is not subject to any financing condition with ~US$15bn of the funding from existing cash and ~US$6bn in newly issued debt.
Conditions to the tender offer are limited - valid tendering of 50% + one share, no MACs, and the waiting period applicable to the Offer under the HSR Act having expired or been terminated. 
The close of the tender is expected in 4Q20, subject to regulatory approval and other customary closing conditions.  Immunomedics' board unanimously supports the Offer.
Provided the Offer completes, a second-stage merger will be undertaken, which will dispense with the requirement for consent from Immunomedics shareholders.  Immunomedics will cease to be listed once the merger is consummated.
This looks done. As always, more below the fold. 

Equity Analyst, LightStream Research

Shifara Samsudeen, ACMA, CGMA

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Gilead Sciences announced on 13th September that it has entered into a definitive agreement to acquire Immunomedics for US$88.00 per share in cash, which values the deal at a whopping US$21bn. The company’s offer is at a 117% premium to Immunomedics’ share price at the close of the previous days’ trading.The transaction was unanimously approved by the board of directors of both Gilead and Immunomedics and is expected to close during the fourth quarter of 2020.The deal will provide Gilead the access to Immunomedics’ antibody drug for advanced triple-negative breast cancer, Trodelvy which was given accelerated FDA approval in April 2020.

Gilead Sciences announced on 13th September that it has entered into a definitive agreement to acquire Immunomedics for US$88.00 per share in cash, which values the deal at a whopping US$21bn. The company’s offer is at a 117% premium to Immunomedics’ share price at the close of the previous days’ trading.The transaction was unanimously approved by the board of directors of both Gilead and Immunomedics and is expected to close during the fourth quarter of 2020.The deal will provide Gilead the access to Immunomedics’ antibody drug for advanced triple-negative breast cancer, Trodelvy which was given accelerated FDA approval in April 2020.

Gilead: Will Immunomedics Be Gilead’s Next Pharmasset?

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

Everest Medicines / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/everest-medicines" target="_blank" data-smartkarma-citation="entities:29224:1" rel="noopener">Everest Medicines (EVEREST HK)</a> is a biopharmaceutical company which targets four therapeutic areas - oncology, immunology, cardio-renal disease and infectious disease. Everest has launched a Hong Kong IPO to raise net proceeds of HK$3,132.4 million ($404 million) at the mid-point of the IPO price range. At the IPO price range, Everest will command a market cap of HK$14,185-15,603 million ($1.8-2.0 billion).<div class="content-highlight">Everest’s strategy is to identify post-proof-of-concept stage assets with a favourable risk-reward potential in China. Everest has a broad drug pipeline with significant near-term revenue potential from 2021/2022. Overall, we believe that the prospectus Everest’s anchor drug assets in their respective therapeutic areas are favourable. </div>

Everest Medicines (EVEREST HK) is a biopharmaceutical company which targets four therapeutic areas - oncology, immunology, cardio-renal disease and infectious disease. Everest has launched a Hong Kong IPO to raise net proceeds of HK$3,132.4 million ($404 million) at the mid-point of the IPO price range. At the IPO price range, Everest will command a market cap of HK$14,185-15,603 million ($1.8-2.0 billion).Everest’s strategy is to identify post-proof-of-concept stage assets with a favourable risk-reward potential in China. Everest has a broad drug pipeline with significant near-term revenue potential from 2021/2022. Overall, we believe that the prospectus Everest’s anchor drug assets in their respective therapeutic areas are favourable. 

Everest Medicines IPO Initiation: Potent Medicine

Legend Biotech Corp / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/legend-biotech" target="_blank" data-smartkarma-citation="entities:28963:1" rel="noopener">Legend Biotech (LEGN US)</a> is one of the leading companies in developing CAR-T cell therapies in China, having received clearance for the first CAR-T cell therapy IND application by the NMPA. Legend is a majority-owned (76.9%) subsidiary of <a href="https://www.smartkarma.com/entities/genscript-biotech-corp" target="_blank" data-smartkarma-citation="entities:21041:1" rel="noopener">Genscript Biotech (1548 HK)</a>. Legend has launched a Nasdaq IPO at a price range of $18.00-20.00 per ADS.  <div class="content-highlight">Legend’s lead product candidate is LCAR-B38M/JNJ-4528 which is being co-developed with Janssen, which is owned by <a href="https://www.smartkarma.com/entities/johnson-johnson" target="_blank" data-smartkarma-citation="entities:1132:1" rel="noopener">Johnson &amp; Johnson (JNJ US)</a>. In <a href="https://www.smartkarma.com/insights/legend-biotech-ipo-initiation-choosing-therapies-a-la-car-t" target="_blank" rel="noopener">our initiation note</a>, we noted that the solid prospects for the lead product along with the strong shareholder register make the IPO worth a closer look. However, our analysis suggests that the valuation is too rich and we are inclined to give the IPO a pass. </div>

Legend Biotech (LEGN US) is one of the leading companies in developing CAR-T cell therapies in China, having received clearance for the first CAR-T cell therapy IND application by the NMPA. Legend is a majority-owned (76.9%) subsidiary of Genscript Biotech (1548 HK). Legend has launched a Nasdaq IPO at a price range of $18.00-20.00 per ADS.  Legend’s lead product candidate is LCAR-B38M/JNJ-4528 which is being co-developed with Janssen, which is owned by Johnson &amp; Johnson (JNJ US). In our initiation note, we noted that the solid prospects for the lead product along with the strong shareholder register make the IPO worth a closer look. However, our analysis suggests that the valuation is too rich and we are inclined to give the IPO a pass. 

United States

Gilead Sciences, Inc. is a research-based biopharmaceutical company that discovers, develops, and commercializes therapeutics to advance the care of patients suffering from life-threatening diseases.  The Company's primary areas of focus include HIV/AIDS, liver disease and serious cardiovascular and respiratory conditions.

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Gilead Sciences (GILD US)

MergerTalk: Gilead Sciences Takeover Of Immunomedics -Still Something In It For The Arbitrageurs

While the jury will be out for a while on the long-term value impact of this particular deal on GILD

Robert Sassoon

Gilead/Immunomedics: Bosom Buddies

Back in April, The FDA recently approved Trodelvy (sacituzumabgovitecan-hziy), an antibody-drug conjugate (ADC), for the treatment of patients...

David Blennerhassett

Gilead: Will Immunomedics Be Gilead’s Next Pharmasset?

Gilead Sciences announced on 13th September that it has entered into a definitive agreement to acquire Immunomedics for US$88.00 per share in cash,...

Shifara Samsudeen, ACMA, CGMA

Everest Medicines IPO Initiation: Potent Medicine

Everest Medicines Everest Medicines (EVEREST HK) is a biopharmaceutical company which targets four therapeutic areas - oncology, immunology,...

Arun George

Legend Biotech IPO: Pass on Valuation

Legend Biotech (LEGN US) is one of the leading companies in developing CAR-T cell therapies in China, having received clearance for the first CAR-T...

Arun George

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