1 00:00:02,520 --> 00:00:09,960 Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News. The Stock Movers Report, 2 00:00:10,280 --> 00:00:13,360 Speaker 1: your roundup of companies making moves in the stock market, 3 00:00:13,680 --> 00:00:16,960 Speaker 1: harnessing the power of Bloomberg Data. 4 00:00:16,560 --> 00:00:18,639 Speaker 2: Stick over some of the stocks on the move today 5 00:00:18,640 --> 00:00:21,599 Speaker 2: on Paul Sweeney alongside Nora Melinda, and we're joined by 6 00:00:21,600 --> 00:00:23,279 Speaker 2: Bloomberg's lis Matael Lisia. What do you have for s 7 00:00:23,280 --> 00:00:23,560 Speaker 2: all right? 8 00:00:23,560 --> 00:00:26,720 Speaker 3: I want to start with Sadara Therapeut It's it's ticker CDTX. 9 00:00:26,760 --> 00:00:28,840 Speaker 3: Their shares have been out more than one hundred percent, 10 00:00:29,160 --> 00:00:32,400 Speaker 3: so it's a biotech company that's developing a flu treatment. 11 00:00:32,440 --> 00:00:35,600 Speaker 3: The big news is that Merk has agreed to buy it. 12 00:00:35,600 --> 00:00:37,400 Speaker 3: It will pay two hundred and twenty one dollars fifty 13 00:00:37,440 --> 00:00:39,960 Speaker 3: cents of sharing cash, a total transaction value of about 14 00:00:40,040 --> 00:00:42,879 Speaker 3: nine point two billion dollars. The story behind it, though, 15 00:00:42,920 --> 00:00:44,880 Speaker 3: Merk has been trying to make up for the upcoming 16 00:00:44,960 --> 00:00:48,400 Speaker 3: patent loss, especially it's cancer drug, key Truda. It's their 17 00:00:48,479 --> 00:00:52,280 Speaker 3: best selling in the pharmaceutical history, account for almost half 18 00:00:52,320 --> 00:00:55,600 Speaker 3: of their revenue last year, and this patent loss is 19 00:00:55,640 --> 00:00:57,560 Speaker 3: going to be huge. I mean, they're expected to road 20 00:00:57,600 --> 00:00:59,959 Speaker 3: sales by about eighteen billion dollars of the next five 21 00:01:00,000 --> 00:01:03,240 Speaker 3: five years, so it's looking to expand the portfolio. Right 22 00:01:03,320 --> 00:01:07,120 Speaker 3: in July, Mercury reed to buy respiratory drug maker for 23 00:01:07,840 --> 00:01:10,520 Speaker 3: Verona Farm. I remember that for around ten billion. So 24 00:01:10,720 --> 00:01:13,240 Speaker 3: you talked about it all this trend of competitive deals 25 00:01:13,240 --> 00:01:16,240 Speaker 3: in the pharmaceutical industry. It just keeps continuing. They're trying 26 00:01:16,240 --> 00:01:18,440 Speaker 3: to get these new drugs. 27 00:01:18,840 --> 00:01:23,279 Speaker 2: Just love biotech stocks because you can make huge, huge 28 00:01:23,319 --> 00:01:25,920 Speaker 2: returns if you're right. So if you think you have 29 00:01:26,040 --> 00:01:30,039 Speaker 2: quote unquote the edge, I know something that the market doesn't, 30 00:01:30,240 --> 00:01:34,360 Speaker 2: then you can really get asymmetrical payoffs, but you can 31 00:01:34,360 --> 00:01:37,959 Speaker 2: also get crushed. Is a good one. 32 00:01:38,120 --> 00:01:40,720 Speaker 3: It definitely is. Now when you guys to go to 33 00:01:40,720 --> 00:01:42,880 Speaker 3: get concert tickets to you go to Subhub. Ever, go 34 00:01:42,880 --> 00:01:45,880 Speaker 3: to sub hub the place you go. Okay, Well, their 35 00:01:45,880 --> 00:01:48,680 Speaker 3: shares are down as much as twenty two percent stu bu. 36 00:01:48,840 --> 00:01:52,440 Speaker 3: They beat expectations for second quarter revenue. But it's CEO 37 00:01:52,560 --> 00:01:55,560 Speaker 3: and founder Eric Baker. He said they're not giving guidance 38 00:01:55,560 --> 00:01:58,480 Speaker 3: for the current quarter and investors didn't like that. They 39 00:01:58,480 --> 00:02:00,960 Speaker 3: said what he said is but the company is taking 40 00:02:01,000 --> 00:02:03,800 Speaker 3: a long term approach. That's how he described it. He 41 00:02:03,840 --> 00:02:06,160 Speaker 3: said the timing of when tickets go on sale it 42 00:02:06,200 --> 00:02:09,960 Speaker 3: can vary, makes it hard to predict consumer demand. The 43 00:02:10,040 --> 00:02:12,359 Speaker 3: company does plan to offer the ALEC for twenty twenty 44 00:02:12,400 --> 00:02:14,519 Speaker 3: six when it reports fourth quarter results, so you will 45 00:02:14,520 --> 00:02:17,480 Speaker 3: get it, just not now, but this is a time 46 00:02:17,480 --> 00:02:20,040 Speaker 3: that it was the first time it reported coarly results 47 00:02:20,040 --> 00:02:22,000 Speaker 3: since the IPO in September. 48 00:02:22,160 --> 00:02:26,440 Speaker 2: Right, Seriously, it's an unwritten understanding for an IPO. If 49 00:02:26,480 --> 00:02:28,519 Speaker 2: I'm going to buy into your company and I don't 50 00:02:28,520 --> 00:02:30,360 Speaker 2: know your company, but I'm buying it, I'm taking a risk. 51 00:02:30,600 --> 00:02:33,519 Speaker 2: What you owe me is at least one or two 52 00:02:33,600 --> 00:02:37,519 Speaker 2: quarters of good earnings. So not only did I sell 53 00:02:37,639 --> 00:02:40,840 Speaker 2: all my shares and stuff up today, IPO investor, I'm 54 00:02:40,919 --> 00:02:43,040 Speaker 2: trying to borrow as much as I can and short it. 55 00:02:43,400 --> 00:02:44,040 Speaker 2: That's what I'm doing. 56 00:02:44,040 --> 00:02:45,960 Speaker 1: This is a yeah, I'm looking at that. The percentage 57 00:02:46,120 --> 00:02:48,120 Speaker 1: in terms of float fifty six percent. 58 00:02:48,200 --> 00:02:50,040 Speaker 3: What I'm seeing on the terminal for short interest terrible. 59 00:02:50,080 --> 00:02:52,440 Speaker 3: Look all right, gosh, And finally I got to hit 60 00:02:52,440 --> 00:02:55,320 Speaker 3: Warner Brothers at WBD up as much as three percent. 61 00:02:56,000 --> 00:02:57,519 Speaker 3: So this is in the wall stree dhow they're saying 62 00:02:57,520 --> 00:03:00,560 Speaker 3: that paramount Comcast Netflix, they're preparing bids. They say there's 63 00:03:00,560 --> 00:03:03,760 Speaker 3: a parent cutoff for those bits of November twentieth, and 64 00:03:03,800 --> 00:03:06,040 Speaker 3: they're saying Warner Brothers hopes it to have it all 65 00:03:06,040 --> 00:03:07,800 Speaker 3: wrapped up by the end of the year. You have 66 00:03:07,840 --> 00:03:11,440 Speaker 3: the Bloomberg Report that they're CEO David Zadlob they're kind 67 00:03:11,480 --> 00:03:14,120 Speaker 3: of re amending his contract to make sure a stock 68 00:03:14,440 --> 00:03:17,920 Speaker 3: options remain eligible to best you know, and even if 69 00:03:17,919 --> 00:03:20,960 Speaker 3: it's sold. So a lot of kind of pointers in 70 00:03:21,040 --> 00:03:21,640 Speaker 3: that direction. 71 00:03:22,720 --> 00:03:26,760 Speaker 1: The Stock Movers Report from Bloomberg Radio. Check back with 72 00:03:26,840 --> 00:03:29,399 Speaker 1: us throughout the day for the latest roundup of companies 73 00:03:29,480 --> 00:03:32,560 Speaker 1: making news on Wall Street and for the latest market 74 00:03:32,600 --> 00:03:37,040 Speaker 1: moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube, 75 00:03:37,160 --> 00:03:40,680 Speaker 1: Bloomberg dot com, and on Applecarplay and Android Auto with 76 00:03:40,720 --> 00:03:42,240 Speaker 1: the Bloomberg Business app.