Diamonds and Dogs
Teva Pharmaceutical Industries (TEVA) is making deals. Teva's stock is down over 50% in the last year, but the stock is up 5% today and up 30% in the last several weeks on news of a new CEO and deals to raise money. Teva is selling its Paragard intrauterine copper contraceptive to Cooper Co. for $1.1 billion in cash. Good news short term, but long term, the company still has $34 billion in debt to pare down.
Sage Therapeutics (SAGE) has seen better days. The biotech company said drug to treat a life-threatening seizure disorder failed to meet the main goal of a late-stage trial. The trial was testing Sage's drug, brexanolone, plus standard of care in patients with super-refractory status epilepticus (SRSE) whose seizures persisted despite earlier treatments, versus a placebo plus standard of care. The stock is down 17% to a three month low. The good news is the stock has rebounded from the morning lows already.