World - Healthcare Sector Review

Transcend Services, Inc. (NASDAQ:TRCR): Nuance Communications (NASDAQ:NUAN) and Transcend Services (NASDAQ:TRCR) announced a definitive agreement for Nuance to acquire Transcend, a leading provider of medical transcription and speech editing services, for approximately $300M, net, in cash. Nuance has agreed to acquire Transcend through a cash tender offer of $29.50 per Transcend share, representing an approximately 30 percent premium over Transcend’s 90-day volume weighted average share price.

The transaction has been unanimously approved by the board of directors of each company. Based on Transcend’s 11.1 million diluted weighted average shares outstanding as of December 31, 2011, the acquisition is valued at approximately $300 million, net of Transcend’s estimated cash at closing. The transaction is expected to close in the second half of Nuance’s fiscal 2012, subject to regulatory approval and other conditions. Nuance expects the acquisition in fiscal 2013 to add between $140 million and $150 million in revenue; non-GAAP earnings between $0.08 and $0.09 per share; and, GAAP earnings between $0.02 and $0.03 per share.

The shares closed at $29.18, up $8.21, or 39.15%, on the day. Its market capitalization is $311.93 million.

AMAG Pharmaceuticals, Inc (NASDAQ:AMAG): AMAG Pharmaceuticals reported preliminary results from the first of two phase III studies that comprise its global registrational program for Feraheme in patients with iron-deficiency anemia regardless of the underlying cause.

The study compared treatment with Feraheme to treatment with intravenous iron sucrose, and enrolled 605 patients at 74 sites in Europe, Asia Pacific and Australia. The primary efficacy endpoint of the study was the mean change in hemoglobin from baseline to week five or the proportion of subjects who achieved a 2.0 g/dL increase in hemoglobin at any time from baseline to week five, depending on the regulatory authority. In this study, Feraheme achieved the predefined criteria for non-inferiority on both primary efficacy endpoints.

Patients treated with Feraheme achieved a mean increase in hemoglobin at week five of 2.7 g/dL, compared to a mean increase of 2.4 g/dL in patients treated with IV iron sucrose. No new safety signals were observed with Feraheme and the types of reported adverse events were consistent with those seen in previous studies and those contained in the U.S. package insert for Feraheme.

The shares closed at $14.98, down $1.06, or 6.61%, on the day. Its market capitalization is $317.62 million.

Cornerstone Therapeutics (NASDAQ:CRTX): Merus Labs International (MSLI) announced that it has completed the acquisition of the North American product rights for FACTIVEA tablets from Cornerstone Therapeutics (NASDAQ:CRTX). Cornerstone recorded FACTIVEA 320mg tablet net sales of approximately $6.3M in the U.S. for 2011. The Product has not been commercialized in Canada.

The Company acquired FACTIVEA for total consideration, as a multiple of Product cash flow, fully paid at closing. Other financial terms of the acquisition were not disclosed. In addition to the acquisition announcement, the board of directors of the company is pleased to announce that on July 12, Elie Farah, the current President of the company, will succeed Ahmad Doroudian as the CEO of the company.

The shares closed at $4.90, down $0.19, or 3.73%, on the day. Its market capitalization is $127.52 million.

Pfizer Inc. (NYSE:PFE): Bayer (BAYRY) is in the early stages of considering a bid for Pfizer’s (NYSE:PFE) animal-health unit, reported Bloomberg, citing people with knowledge of the plans. Leerink Swann said the asset could be valued at $14B-$18B in a sale, the story noted.

The shares closed at $21.37, up $0.11, or 0.49%, on the day. Its market capitalization is $161.10 billion.

Merck & Co., Inc. (NYSE:MRK): Merck, known as MSD outside of the U.S. and Canada, announced results from two different investigational studies conducted to better understand the potential use of VICTRELIS, or boceprevir, the company’s oral HCV NS3/4A protease inhibitor, in treating patients coinfected with chronic hepatitis C virus, or HCV, and HIV-1.

These data are being presented for the first time today at the 19th Conference on Retroviruses and Opportunistic Infections, or CROI, in Seattle. Results were presented from a 12-week post treatment interim analysis of a Phase IIb clinical study evaluating the investigational use of VICTRELIS in combination with peginterferon alfa-2b and ribavirin for the treatment of chronic HCV genotype 1 infection in adult patients coinfected with HIV-1. In the study, a higher percentage of patients receiving VICTRELIS in combination with peginterferon alfa-2b and ribavirin had undetectable hepatitis C virus, or HCV-RNA, 12 weeks after treatment ended than patients receiving peginterferon alfa-2b and ribavirin alone.

Additionally, Merck announced results as part of a late-breaker poster session from a pharmacokinetic study evaluating drug interactions between VICTRELIS and ritonavir-boosted HIV protease inhibitors in 39 healthy volunteers. In this study, concomitant administration of VICTRELIS with ritonavir, or Norvir, in combination with atazanavir, or Reyataz, or darunavir aka Prezista, or with lopinavir/ritonavir, or Kaletra, resulted in reduced exposures of the HIV medicines and VICTRELIS. These drug interactions may be clinically significant for patients infected with both chronic HCV and HIV by potentially reducing the effectiveness of these medicines when co-administered.

Merck does not recommend the co-administration of VICTRELIS and ritonavir-boosted HIV protease inhibitors. In light of the differing results in these data sets, Merck recognizes it is important to continue to study VICTRELIS in combination therapy in this difficult-to-treat patient population.

The shares closed at $37.31, down $0.13, or 0.35%, on the day. Its market capitalization is $113.57 billion.

Abbott Laboratories (NYSE:ABT): Abbott announced that the U.S. Food and Drug Administration approved the Absolute Pro Vascular Self-Expanding Stent System for the treatment of iliac artery disease, a form of peripheral artery disease that affects the lower extremities. Over time, iliac artery disease can progress to where patients have reduced walking ability, experience chronic pain and suffer permanent disability. This approval is supported by the MOBILITY study, which demonstrated that Absolute Pro is safe and effective, even in patients with complex disease.

The shares closed at $56.26, down $0.09, or 0.16%, on the day. Its market capitalization is $88.46 billion.

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Stella Mariz

wallstcheatsheet.com

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