Wednesday, July 03, 2013

Optimer Pharmaceuticals Again

I’m back in Optimer Pharmaceuticals (Ticker: OPTR) today at $15.05. It looks like the bidding process is continuing with Cubist Pharmaceuticals (Ticker: CBST), Astellas Pharma, and Salix Pharmaceuticals (Ticker: SLXP) in the mix. I got shaken out when the stock was in a steady decline resulting in a ~ 11% loss. Anyways, we’ll see soon…

7 Comments:

At July 05, 2013, Anonymous Anonymous said...

MT,

Welcome back. OPTR, Lets hope this time its worth your while. Still no 100% public news from Bloomberg. Do you have access to a Bloomberg terminal or know someone who does so you can obtain more details? Watch the $14.77 price level. This is the YTD 3 month and YTD VPOC (Volume Point of Contact), the price where the heaviest volume has traded.

Harris Teeter Supermarkets (HTSI), Would you be able to look up a previous WSJ online story dated June 26, 2013 10:33am ET titled "Cerberus Bids for Harris Teeter Grocery Chain, Supermarket Company has been exploring a possible sale". We are looking for any price ranges and bidding dates. Also any mention of other suitors.


Regards,

inforesource7

 
At July 05, 2013, Blogger Money Turtle said...

I subscribe to the print version of the WSJ, but was able to find this. Hope this is what your looking for:

Cerberus Capital Management LP has made a bid for Harris Teeter Supermarkets Inc. HTSI -0.66% and is considering a structure in which a part of the East Coast grocery chain would remain publicly traded, according to a person familiar with the matter.

Harris Teeter, a supermarket chain with around 200 stores, has been exploring a potential sale for months. Cerberus earlier this year acquired several grocery chains from Supervalu Inc. SVU -0.15% and is looking to further expand in the grocery business.

Cerberus hasn't decided if it would attempt to acquire the entire company or whether it would buy a major piece and leave some part in the hands of public shareholders, the person said. The market capitalization is about $2.3 billion.

Shares rose Wednesday more than 2%, to $47.02, after The Wall Street Journal reported on the Cerberus bid.

It isn't clear whether others have bid for Harris Teeter. On May 8, the company said in a securities filing that it is in discussions with "certain parties" about strategic alternatives but that it is unknown whether talks will result in a deal.

It is possible Cerberus and Harris Teeter won't reach an agreement on a price for the company, or that other bidders will emerge, the person said.

An acquisition of Harris Teeter would be somewhat of a departure for Cerberus, which has typically sought far more distressed companies. Harris Teeter produces higher margins and offers higher-end goods compared with Cerberus's mostly down-market chains.

But Cerberus sees savings in combining Harris Teeter with the Supervalu business, according to the person familiar with the matter.

Cerberus envisions keeping the Harris Teeter management team and its North Carolina headquarters intact, unlike with Supervalu where it brought in its own leadership team.

 
At July 05, 2013, Anonymous Anonymous said...

MT,

My bad, I thought you had subscribed to WSJ online. Thank You for posting the article. I had read this before so nothing new here. HTSI hired JP Morgan back on 2-13-13. These sales processes are taking so long these days.

OPTR is in a tight range today. Decent volume so small shorts must be covering some due to Friday and recent rumor. It should close higher today before the weekend. It would be helpful to close above $15.66 which was Tuesdays intra-day high.


Regards,

inforesource7

 
At July 05, 2013, Anonymous Anonymous said...

MT,

OPTR although we did not break above $15.66 today I am satisfied with the day and close. I believe everyone is on vacation so Monday should be back to normal. FYI, I have sent an email to the bloomberg writer to ask for an updated article based on the news from 07-03-13. I received an auto response vacation message and I am now following up with the backup. Will let you know if anything comes of it.


Regards,

inforesource7

 
At July 06, 2013, Anonymous Anonymous said...

MT,

I got lucky and received an email response from bloomberg on OPTR. I have copied and pasted the email text below. I believe OPTR should decide and announce prior to the next earnings report. The last three earnings reports were scheduled on 07-31-12, 08-04-11, 08-04-10.


Optimer Said to Narrow Suitors to Cubist, Astellas, Salix (2)
2013-07-03 17:17:59.872 GMT

(Updates with closing share price in second paragraph.)

By David Welch
July 3 (Bloomberg) -- Optimer Pharmaceuticals Inc., the
antibiotics company that has been seeking a buyer, narrowed its
list of suitors to Cubist Pharmaceuticals Inc., Astellas Pharma Inc. and Salix Pharmaceuticals Ltd., a person with knowledge of the situation said.
Optimer, based in Jersey City, New Jersey, is planning to
make a decision toward the end of this month, said the person, who asked not to be identified because the process is private.
Optimer climbed 4.3 percent at the close in New York to $15.18,
giving it a market value of almost $740 million.
All three companies would have synergies with Optimer, the
maker of the Dificid drug used to treat intestinal infections.
Tokyo-based Astellas and Lexington, Massachusetts-based Cubist have both worked with Optimer to distribute Dificid, company statements show, while Raleigh, North Carolina-based Salix also produces drugs for gastrointestinal disorders.
David Walsey, a spokesman for Optimer, declined to comment.
Representatives for Salix and Cubist didn’t immediately return
calls seeking comment, while a spokeswoman for Astellas declined
to comment.
Sales of Dificid, approved in 2011, were $62 million last
year, accounting for about 62 percent of the company’s total
sales, according to data compiled by Bloomberg. Optimer’s revenue is projected to grow to $274 million in 2017, with Dificid accounting for more than half, according to analysts’ estimates compiled by Bloomberg.

Strategic Review

AstraZeneca Plc and GlaxoSmithKline Plc both had expressed interest earlier in the process, people familiar with the
situation said in May.
Former Chairman Michael Chang left Optimer last year after
the board found that he failed to identify and manage conflicts of interest tied to a stock grant. The company named Henry McKinnell to succeeded Chang.
Optimer named McKinnell chief executive officer in February, when it disclosed the board’s strategic review,
replacing Pedro Lichtinger. Optimer said then it was working
with Centerview Partners LLC and JPMorgan Chase & Co. to explore
options.


Regards,

inforesource7

 
At July 06, 2013, Blogger Money Turtle said...

Thanks for the article. It looks like a nice competitive bidding process.

 
At July 06, 2013, Anonymous Anonymous said...

Thanks for the article.. Since it is very hard to find the whole article and looks like the company won't be sold till end of month, stock might drop next week
Aapltrader

 

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