Cardinal Health intent to acquire Kinray
So here I am with one of the Helical portfolio companies up over 25% today (Exelixis), finding myself more interested in the news from Cardinal Health.
But first I guess Exelixis, which revealed some interim data on one of its drugs, XL184, a drug the company owns outright after GSK passed on it, and BMS allowed the company to end its partnership on the same drug as well. So good for them. Brings the company back near to where I last bought it (which is a bias I should ignore). This is bouncier than most days for a biotech of this type, but the intent continues to be to pretty much ignore EXEL until it is 10% of the port, or fertilizer. It is neither. (Maybe this data will encourage a partner to get involved - LOL).
The news from Cardinal Health is also giving that company a stock boost today (>5% so far). They intend to acquire private company Kinray for ~ $1.3B (cash). The deal is expected to be neutral to slightly accretive in 2011, depending on when it closes. Not much info is available on Kinray, other than annual revenues of $3.5B. Paying less than 40% of sales sounds good, but note that Cardinal trades for only 12% of revenues (Yahoo stats), though this is quite low for the company historically.
Pretty decent day in the Helical port, which by the way no longer owns Rodman and Renshaw, but it is just a day.
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