Brean Murray Carret & Co. Downgrades Adolor (ADLR) to Hold, Believes Deal is Fairly Valued
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Price: $4.77 --0%
Rating Summary:
2 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
2 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Brean Murray Carret & Co. downgraded shares of Adolor (NASDAQ: ADLR) to a Hold rating from its previous rating of Buy following the acquisition announcement from Cubist Pharm (Nasdaq: CBST). The firm also suspended its $5 price target.
Both boards have already approved the deal and the firm sees it being completed by the end of the year. The terms of the deal are that CBST will pay $4.25 per share in cash initially with $4.50 in contingency payment rights.
Brean Murray Carret reports, "in order for shareholders to benefit from the CPR, the approvals must occur by 2019 and the sales milestones must be hit within the first five years of marketing; we see both approvals coming in late 2014."
CBST believes there are multiple synergies located in the marketing of Entereg and ADL5954 in the hospital and specialty markets. The firm highlights management will need to partner the primary care market for ADL5945 to help maximize the products overall value.
For more ratings news on Adolor click here and for the rating history of Adolor click here.
Shares of Adolor closed at $1.92 yesterday.
Both boards have already approved the deal and the firm sees it being completed by the end of the year. The terms of the deal are that CBST will pay $4.25 per share in cash initially with $4.50 in contingency payment rights.
Brean Murray Carret reports, "in order for shareholders to benefit from the CPR, the approvals must occur by 2019 and the sales milestones must be hit within the first five years of marketing; we see both approvals coming in late 2014."
CBST believes there are multiple synergies located in the marketing of Entereg and ADL5954 in the hospital and specialty markets. The firm highlights management will need to partner the primary care market for ADL5945 to help maximize the products overall value.
For more ratings news on Adolor click here and for the rating history of Adolor click here.
Shares of Adolor closed at $1.92 yesterday.
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