Diamonds and Dogs
A dog turns into a diamond today. VCA Inc, an animal healthcare company, symbol (WOOF) is up 28% to a new all-time high after Mars Inc., the conglomerate that owns the IAMS and Pedigree pet food brands, agreed to aquire VCA Inc for $9.1 billion. VCA operates almost 800 small animal veterinary hospitals in the U.S. and Canada.
Eagle Pharma (EGRX) grounded today. The biotech company dropped 9% today after dropping 8% on Friday. An analyst at Mizuho downgraded the stock today to a neutral from a buy with a $64 target verse a $78 price target. Firm notes they are downgrading EGRX as valuation declined due to lower Treanda/Bendeka expectations introduced by Teva (so they expect consensus estimates to decline too). They think this more conservative outlook could adversely impact takeout interest.