Aschoff wrote, “We estimate that the freedom to forego Phase 3 testing will shave off at least $20 million from the cost of development, as well as about 18-24 months of time. The NDA process should now only cost Intellipharmaceutics about $1-1.5 million. We believe that the FDA was satisfied with the bioequivalence data in the IND and thus what remains to be completed prior to NDA submission primarily involves six-month stability testing comparing bioequivalence before and after the six-month period.”
The analyst rates IntelliPharmaCeutics shares a Buy, with an $8 price target, which implies an upside of 172% from current levels.
Sentiment: Strong Buy
turning up from deep oversold.. being a news item stock hard to tell what will happen.. chart looks great..but traders and spec confuse the trends....http://stockcharts.com/h-sc/ui
Sentiment: Strong Buy
NXP CEO Clemmer Talks Merger, Debt, and Why the Stock’s So Low
By Tiernan Ray
NXP Semiconductors CEO Rick Clemmer at Barron's offices, May 21st, 2015.
NXP Semiconductors CEO Rick Clemmer at Barron’s offices, May 21st, 2015.
Later this year, NXP Semiconductors (NXPI) will merge with Freescale Semiconductor (FSL) in an $11.8 billion deal announced back in February.
Fresh from a J.P. Morgan tech conference in Boston, NXP CEO Rick Clemmer swung by Barron’s offices on Thursday for a brief chat.
The merger will make the combined entity the world’s fourth biggest independent chip company — outside of memory chips — behind Intel (INTC), Qualcomm (QCOM), and Texas Instruments (TXN), where NXP is currently fourteenth and Freescale is 18th.
Why’s our stock so low?
Said Clemmer, “One thing we got questions from is why is out stock so low,” he said, reflecting on the chat in Boston. Despite being up 76% in the last twelve months, NXP fetches just ten times what one bull, Stacy Rasgon of Bernstein, last month argued is the combined value of the two companies’s potential earnings.
Clemmer agrees with Rasgon, mentioning his coverage initiation a couple times in the chat.
So, why’s it so cheap? “You’d have to ask them,” he says, meaning investors. But he’s willing to hazard a guess that investors don’t really understand one of the emerging growth areas: Internet of Things.
NXP is going to have the most comprehensive offering for IoT, he says, repeating a claim he made during my meeting with him in Barcelona in February.
“If you look at the total solution [for IoT], it’s the sensing part, the sensors themselves, which we think has become basically a commodity business, and so we see no reason to participate there.”
“But then you also have to have the computing, the connectivity features, and the security.”
“Well, we had the security and the connectivity parts, but we didn’t have all we needed on the microcontroller side, because we were in areas that were very narrow.”
With Freescale, NXP will be the top vendor of general-purpose microcontrollers, he notes. Last year, NXP was the fastest-growing in the market, and Freescale was the second-fastest-growing.
In sum, “IoT will be significant growth area” for NXP, he says.
Security tech is going to be big
Then, too, “We are a complex story because of the security aspect,” he says, meaning NXP’s chips for the “secure element” inside Apple’s iPhone, which holds your personal credentials, and also NXP’s work on e-passports.
Clemmer repeated a claim he’s made frequently, namely that “In an IoT world, security will play a key role” because all these connected things will be even more prone to hacking and theft and such, and they increasingly carry personal data. “You need the ruggedized security of a hardened secure element,” he says, making a pitch for NXP’s offering.
Deal approval progress
Among other things that were top of mind, said Clemmer, was that Qualcomm (QCOM) had announced a week ago that they would get out of the business of making their own chips for “near-field communications,” the standard for so-called contactless payments (think Apple‘s (AAPL) Apple Pay) and would partner with NXP, a nice little win for Clemmer.
But also there had been questions from investors at the JP Morgan event as to whether regulators might still block the merger.
“We don’t have regulatory concerns,” said Clemmer. “We’re working selling the high-power RF business,” a power amplifier line that would have 80% to 90% of the market with the combined company, which has been one of the requirements of the combination. “We are in discussions with a few guys for that, and targeting June to complete that.”
What else might they sell?
Regarding what else the company might sell, I asked about “standard products,” a catalog business of many, many kinds of discrete chips, which can be more volatile than the other parts of NXP. Bernstein’s Rasgon, for one, wonders whether it could be a sale candidate.
“If someone would pay fair value for it we would consider it,” said Clemmer of a sale of the unit. On the negative side, “It doesn’t run the same profit margin as HPMS [high-performance mixed-signal, today 75% of NXP's revenue]: it’s 20% operating margin or so, versus 27% or better for HPMS,” and also standard is “not as sticky,” meaning you have to keep winning deals for the chips quarter after quarter. “It has more volatility because you have to have RFQs on a monthly basis.”
Still, it’s a business that churns out an amazing 70 billion units a year, and 40% of standard product sales comes from automotive, which will be the crown jewel of the combined company, with a number one share in semis for that market.
So, what would a fair price be? Well, “it has better performance than ON [Semiconductor] (ONNN) or Fairchild [Semiconductor] (FCS),” he notes, implying the unit would have to at least fetch the kinds of multiples those companies get for similar business.
Debt is a good thing
We closed out the chat with discussion of the substantial debt pile the company will have after the merger, about 3 times debt to Ebitda, fairly high for a tech company.
NXP will bring that down to just two times within five quarters of the Freescale deal closing, Clemmer said, repeating promises he made at the deal announcement.
Some of that will happen by absorbing Freescale’s larger debt pile at rates considerably more favorable, with some Freescale debt tranches having rates as high as 10%, he notes. A “big chunk” will be refinanced.
But debt is good, was Clemmer’s main point. “A lot of semiconductor companies have lazy balance sheets,” he says, with little to no debt. “If you can finance at a low cost in return for double-digit equity returns, that’s a good thing to do,” said Clemmer.
Every company should have some debt, he argues, and generally should aim for zero or negative net cash. What if rates rise? Doesn’t change things. “Even if your cost were to go up to 5%, it still makes sense to do it [take on debt] if you’re going to get double digit equity returns.”
I offered the example of Intel’s CFO, Stacy Smith, who argues for a “zero-cash” approach to the balance sheet. “That’s good,” he says, “But they’ve got very little debt.”
“If you have a net cash balance of any kind, you’re not doing all you can do,” he says.
NXP shares today are up $3.58, or 3.5%, at $106.40.
IntelliPharmaCeutics Intl Downgraded by TheStreet (IPCI)
Posted on May 20, 2015 by Jamal Genner in Analyst Articles - US, Investing
IntelliPharmaCeutics Intl Inc logoTheStreet lowered shares of IntelliPharmaCeutics Intl (NASDAQ:IPCI) from a hold rating to a sell rating in a report released on Monday.
Sentiment: Strong Buy
Cramer must be short too :)TheStreet Ratings team rates INTELLIPHARMACEUTICS INTL as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
Sentiment: Strong Buy
The company said the FDA notification is significant "as it provides a basis for an accelerated development plan for its Rexista Oxycodone XR product candidate, without the need for more costly and time-consuming Phase III studies."
It now intends to file a new-drug application for Rexista Oxycodone XR extended-release tablets with the FDA within the next six to 12 months.
Sentiment: Strong Buy
Bernstein Initiates Alibaba With $120 PT On Mobile Monetization Growth
Benzinga By Jim Swanson
1 hour ago
In a report published Thursday, Bernstein analysts initiated coverage of Alibaba Group Holding Ltd (NYSE: BABA) with an Outperform rating and $120 price target. The analysts believe that the market underappreciates the company's growth potential.
Alibaba has potential to grow its gross merchandise volume (GMV) in its Chinese retail markets, Taobao and Tmall. The company also has the potential to fully monetize this GMV as mobile takes over a leading share of these volumes. The analysts believe that improvements in mobile monetization could match or even surpass the historical PC monetization levels.
"Chinese e-commerce continues to penetrate its still-rapidly growing addressable market, which in turn is driven by growing incomes and consumption and expanding Internet penetration. This addressable market is much larger than the consumption of goods by Chinese consumers, as it encompasses a large portion of services they purchase, giving Alibaba a long runway for growth," the report explained.
According to the Bernstein report, the markets are also underestimating Alibaba's potential to expand its margins in the near term, driven by GMV monetization and a slowdown in headcount growth.
"Although the near-term may be volatile as the transition from PC to mobile occurs, and PC monetization weakens, we believe continued GMV growth and significantly improved (mobile) monetization will drive upside versus expectations 12 months out and beyond," the analysts added.
Shares of Alibaba closed Wednesday at $90.70.
Sentiment: Strong Buy
Blackstone Said to Seek $525 Million for Old NYT Offices
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by Hui-Yong Yu
12:44 PM PDT
May 20, 2015
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Blackstone Group LP is selling the Manhattan offices that once housed the New York Times after completing renovations and signing new tenants including Yahoo! Inc., said a person with knowledge of the plans.
Blackstone is seeking about $525 million, or more than $1,000 a square foot, for the top 12 floors of the 102-year-old property, said the person, who asked not to be identified because the planned sale is private.
The New York-based firm bought the office portion of the 16-story building at 229 W. 43rd St. in 2011 for $160 million. It invested $105 million in renovations aimed at luring Internet and communications companies to the property, which had been the headquarters of the New York Times from 1913 to 2007. Yahoo leased four floors in 2013.
The office condominium being sold by Blackstone totals 479,000 square feet (44,500 square meters).
Christine Anderson, a spokeswoman for New York-based Blackstone, declined to comment. The plans were reported late Tuesday by Real Estate Alert, an industry newsletter.
The retail portion of the building, totaling 250,000 square feet, was sold earlier this month to Kushner Cos. for $296 million. The seller was a partnership between Africa Israel USA and an affiliate of Five Mile Capital Partners.
Shares of The Blackstone Group L.P. (NYSE:BX) Sees Large Inflow of Net Money Flow
By Crystal Schulteis - May 20, 2015 33 0
The Blackstone Group L.P. (NYSE:BX) witnessed a selling pressure and the shares last traded with a loss of -0.32 points or -0.73% at $43.64. Investors jumped in to buy the shares on weakness. The net money flow till latest update was calculated at $9.44 million with an inflow of $53.62 million in upticks and an outflow of $44.18 million in downticks. Using the data, the up/down ratio is found to be 1.21. The share price has recorded 0.58% on a weekly basis.A block trade of $13.19 million in uptick and $2.28 million in downtick was also observed, resulting in an up/down ratio of 5.79. The net money flow of the block trade stood at a $10.92, signaling heavy buying.
Shares of The Blackstone Group L.P. (NYSE:BX) ended Tuesday session in red amid volatile trading. The shares closed down 0.32 points or 0.73% at $43.64 with 4,647,198 shares getting traded. Post opening the session at $44.26, the shares hit an intraday low of $43.56 and an intraday high of $44.43 and the price vacillated in this range throughout the day. The company has a market cap of $23,928 million and the number of outstanding shares has been calculated to be 548,301,000 shares. The 52-week high of The Blackstone Group L.P. (NYSE:BX) is $44.15 and the 52-week low is $26.56.
The Blackstone Group L.P. (Blackstone) is a manager of private capital and provider of financial advisory services. The Company is an independent manager of private capital worldwide, with assets under management of $210.2 billion as of December 31, 2012. Its alternative asset management businesses include the management of private equity funds, real estate funds, funds of hedge funds, credit-oriented funds, collateralized loan obligation (CLO) vehicles and separately managed accounts. It also provides a range of financial advisory services, including financial advisory, restructuring and reorganization and fund placement services. It operates in five segments: Private Equity, Real Estate, Hedge Fund Solutions, Credit Businesses, and Financial Advisory. In July 2014, the Company acquired Gates Corp.
Sentiment: Strong Buy
IntelliPharmaCeutics Intl Downgraded by TheStreet (IPCI)
Posted by Nolan Pearson on May 19th, 2015 // No Comments
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IntelliPharmaCeutics Intl logoIntelliPharmaCeutics Intl (NASDAQ:IPCI) was downgraded by stock analysts at TheStreet from a “hold” rating to a “sell” rating in a report issued on Monday.
Shares of IntelliPharmaCeutics Intl (NASDAQ:IPCI) traded down 0.36% on Monday, hitting $2.79. 53,288 shares of the company’s stock traded hands. IntelliPharmaCeutics Intl has a 1-year low of $1.94 and a 1-year high of $4.19. The stock has a 50-day moving average of $2. and a 200-day moving average of $2.. The company’s market cap is $65.68 million.
IntelliPharmaCeutics Intl (NASDAQ:IPCI) last issued its quarterly earnings data on Tuesday, April 14th. The company reported ($0.04) earnings per share for the quarter, beating the analysts’ consensus estimate of ($0.08) by $0.04. On average, analysts predict that IntelliPharmaCeutics Intl will post $-0.13 earnings per share for the current fiscal year.
A number of other firms have also recently commented on IPCI. Analysts at Zacks downgraded shares of IntelliPharmaCeutics Intl from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, May 13th. Analysts at Brean Capital reiterated a “buy” rating and set a $8.00 price target on shares of IntelliPharmaCeutics Intl in a research note on Wednesday, April 1st. Finally, analysts at Nomura downgraded shares of IntelliPharmaCeutics Intl to a “neutral” rating in a research note on Tuesday, February 24th. One analyst has rated the stock with a sell rating, two have assigned a hold rating and two have given a buy rating to the stock. The company has an average rating of “Hold” and a consensus target price of $7.50.
Intellipharmaceutics International Inc (NASDAQ:IPCI) is a pharmaceutical company specializing in the research, development and manufacture of generic controlled-release and targeted-release oral solid dosage drugs. Its patented Hypermatrix technologies are a multidimensional controlled-release drug delivery platform that can be applied to the efficient development of a range of existing and new pharmaceuticals.
dont know if any oversubscribed.. was 90 million shares..Now HLT can join the S&P 500.. nice distribution coming up next time..have no idea what it would be..
Endo Buying Par Pharma To Become Top Generics Player
BY AMY REEVES, INVESTOR'S BUSINESS DAILY
10:38 AM ET
Aspiring specialty-drug giant Endo International (NASDAQ:ENDP) agreed to buy major generic drugmaker Par Pharmaceutical Holdings for $8.05 billion Monday, a deal Endo says will make it one of the top five generic-drug makers in the world.
Investors were a bit nervous, however, and Endo was down 2% in early trading in the stock market today.
Endo agreed to shell out $6.5 million in cash and 18 million of its own shares to acquire Par from TPG Capital, the private-equity group that took Par private in September 2012. In March, Par filed to return to the stock market in an IPO, which revealed that it generated $1.3 billion in revenue last year from nearly 100 products.
"Our generics business, Qualitest, continues to be an extremely attractive and effective growth driver for Endo," Endo CEO Rajiv De Silva said in a statement. "This transaction with Par builds upon our generics growth, adding a strong portfolio of high barrier-to-entry and attractive gross margin products while also transforming Endo, creating a powerful corporate platform for future growth and strategic M&A."
De Silva said Par CEO Paul Campanelli would join Endo's leadership team, though he didn't specify the position. The companies expect to realize $175 million in operating and tax savings within the first 12 months of the merger.
The deal continues the highly acquisitive strategy De Silva has adopted since taking the helm in March 2013, following the example of Valeant Pharmaceuticals (NYSE:VRX), where De Silva used to be chief operating officer. In March, he faced off against his former employer in an attempt to woo Salix Pharmaceuticals away from Valeant, a move Valeant defeated by raising its bid.
The friendly nature of the Endo-Par deal stands out among the recent round of hostile buyout attempts in the generics industry, with Teva Pharmaceutical (NYSE:TEVA) chasing Mylan (NASDAQ:MYL) and Mylan chasing Perrigo (NYSE:PRGO), as the long run of consolidation in the industry has left only a few big companies able to make substantial deals.
Elsewhere on the Web:
It's the end-o the road for TPG and Par Pharmaceutical Holdings Inc.Endo International PLC(ENDP) agreed to acquire the pharmaceutical maker for $8 billion, Chelsey Delaney writes for The Wall Street Journal.