Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News. The Stock Movers Report,
Speaker 1: your roundup of companies making moves in the stock market,
Speaker 1: harnessing the power of Bloomberg Data.
Speaker 2: Stick over some of the stocks on the move today
Speaker 2: on Paul Sweeney alongside Nora Melinda, and we're joined by
Speaker 2: Bloomberg's lis Matael Lisia. What do you have for s
Speaker 2: all right?
Speaker 3: I want to start with Sadara Therapeut It's it's ticker CDTX.
Speaker 3: Their shares have been out more than one hundred percent,
Speaker 3: so it's a biotech company that's developing a flu treatment.
Speaker 3: The big news is that Merk has agreed to buy it.
Speaker 3: It will pay two hundred and twenty one dollars fifty
Speaker 3: cents of sharing cash, a total transaction value of about
Speaker 3: nine point two billion dollars. The story behind it, though,
Speaker 3: Merk has been trying to make up for the upcoming
Speaker 3: patent loss, especially it's cancer drug, key Truda. It's their
Speaker 3: best selling in the pharmaceutical history, account for almost half
Speaker 3: of their revenue last year, and this patent loss is
Speaker 3: going to be huge. I mean, they're expected to road
Speaker 3: sales by about eighteen billion dollars of the next five
Speaker 3: five years, so it's looking to expand the portfolio. Right
Speaker 3: in July, Mercury reed to buy respiratory drug maker for
Speaker 3: Verona Farm. I remember that for around ten billion. So
Speaker 3: you talked about it all this trend of competitive deals
Speaker 3: in the pharmaceutical industry. It just keeps continuing. They're trying
Speaker 3: to get these new drugs.
Speaker 2: Just love biotech stocks because you can make huge, huge
Speaker 2: returns if you're right. So if you think you have
Speaker 2: quote unquote the edge, I know something that the market doesn't,
Speaker 2: then you can really get asymmetrical payoffs, but you can
Speaker 2: also get crushed. Is a good one.
Speaker 3: It definitely is. Now when you guys to go to
Speaker 3: get concert tickets to you go to Subhub. Ever, go
Speaker 3: to sub hub the place you go. Okay, Well, their
Speaker 3: shares are down as much as twenty two percent stu bu.
Speaker 3: They beat expectations for second quarter revenue. But it's CEO
Speaker 3: and founder Eric Baker. He said they're not giving guidance
Speaker 3: for the current quarter and investors didn't like that. They
Speaker 3: said what he said is but the company is taking
Speaker 3: a long term approach. That's how he described it. He
Speaker 3: said the timing of when tickets go on sale it
Speaker 3: can vary, makes it hard to predict consumer demand. The
Speaker 3: company does plan to offer the ALEC for twenty twenty
Speaker 3: six when it reports fourth quarter results, so you will
Speaker 3: get it, just not now, but this is a time
Speaker 3: that it was the first time it reported coarly results
Speaker 3: since the IPO in September.
Speaker 2: Right, Seriously, it's an unwritten understanding for an IPO. If
Speaker 2: I'm going to buy into your company and I don't
Speaker 2: know your company, but I'm buying it, I'm taking a risk.
Speaker 2: What you owe me is at least one or two
Speaker 2: quarters of good earnings. So not only did I sell
Speaker 2: all my shares and stuff up today, IPO investor, I'm
Speaker 2: trying to borrow as much as I can and short it.
Speaker 2: That's what I'm doing.
Speaker 1: This is a yeah, I'm looking at that. The percentage
Speaker 1: in terms of float fifty six percent.
Speaker 3: What I'm seeing on the terminal for short interest terrible.
Speaker 3: Look all right, gosh, And finally I got to hit
Speaker 3: Warner Brothers at WBD up as much as three percent.
Speaker 3: So this is in the wall stree dhow they're saying
Speaker 3: that paramount Comcast Netflix, they're preparing bids. They say there's
Speaker 3: a parent cutoff for those bits of November twentieth, and
Speaker 3: they're saying Warner Brothers hopes it to have it all
Speaker 3: wrapped up by the end of the year. You have
Speaker 3: the Bloomberg Report that they're CEO David Zadlob they're kind
Speaker 3: of re amending his contract to make sure a stock
Speaker 3: options remain eligible to best you know, and even if
Speaker 3: it's sold. So a lot of kind of pointers in
Speaker 3: that direction.
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