Diamonds and Dogs
Good news for Ionis Pharmaceuticals (IONS) and children with spinal muscular atrophy. The Carlsbad, CA based firm is up 28% after phase 3 trials showed infants receiving nusinersen experienced a statistically significant improvement in the achievement of motor milestones compared to those who did not receive treatment. The really good news is all the infants in the drug trial will now receive the medication and Biogen will now pay Ionis $75 million and take over the handling and the marketing of the drug and initiate regulatory filings globally in the coming months.
Oil in the pits. Oil or energy has been one of the biggest surprises so far in 2016. After a stellar run up in the first half of the year, the price of oil may be heading back down or at least sideways for now. Exxon Mobil (XOM) the largest and most profitable energy company is the dog today down 3.5% as their cash flow declines. Exxon's operating cash flow before asset sales totaled $4.5 billion, well below his $6.5 billion expectation and analysts' consensus of $6.8 billion, mostly due to working capital and other items that reduced it by $2 billion. The good news, they still have positive cash flow. Many oil companies can't say that.
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