WEBVTT - Cidara Therapeutics Surges; Stubhub Tumbles; WBD Rallies

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, Radio News. The Stock Movers Report,

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<v Speaker 1>your roundup of companies making moves in the stock market,

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<v Speaker 1>harnessing the power of Bloomberg Data.

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<v Speaker 2>Stick over some of the stocks on the move today

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<v Speaker 2>on Paul Sweeney alongside Nora Melinda, and we're joined by

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<v Speaker 2>Bloomberg's lis Matael Lisia. What do you have for s

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<v Speaker 2>all right?

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<v Speaker 3>I want to start with Sadara Therapeut It's it's ticker CDTX.

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<v Speaker 3>Their shares have been out more than one hundred percent,

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<v Speaker 3>so it's a biotech company that's developing a flu treatment.

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<v Speaker 3>The big news is that Merk has agreed to buy it.

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<v Speaker 3>It will pay two hundred and twenty one dollars fifty

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<v Speaker 3>cents of sharing cash, a total transaction value of about

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<v Speaker 3>nine point two billion dollars. The story behind it, though,

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<v Speaker 3>Merk has been trying to make up for the upcoming

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<v Speaker 3>patent loss, especially it's cancer drug, key Truda. It's their

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<v Speaker 3>best selling in the pharmaceutical history, account for almost half

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<v Speaker 3>of their revenue last year, and this patent loss is

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<v Speaker 3>going to be huge. I mean, they're expected to road

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<v Speaker 3>sales by about eighteen billion dollars of the next five

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<v Speaker 3>five years, so it's looking to expand the portfolio. Right

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<v Speaker 3>in July, Mercury reed to buy respiratory drug maker for

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<v Speaker 3>Verona Farm. I remember that for around ten billion. So

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<v Speaker 3>you talked about it all this trend of competitive deals

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<v Speaker 3>in the pharmaceutical industry. It just keeps continuing. They're trying

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<v Speaker 3>to get these new drugs.

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<v Speaker 2>Just love biotech stocks because you can make huge, huge

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<v Speaker 2>returns if you're right. So if you think you have

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<v Speaker 2>quote unquote the edge, I know something that the market doesn't,

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<v Speaker 2>then you can really get asymmetrical payoffs, but you can

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<v Speaker 2>also get crushed. Is a good one.

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<v Speaker 3>It definitely is. Now when you guys to go to

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<v Speaker 3>get concert tickets to you go to Subhub. Ever, go

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<v Speaker 3>to sub hub the place you go. Okay, Well, their

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<v Speaker 3>shares are down as much as twenty two percent stu bu.

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<v Speaker 3>They beat expectations for second quarter revenue. But it's CEO

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<v Speaker 3>and founder Eric Baker. He said they're not giving guidance

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<v Speaker 3>for the current quarter and investors didn't like that. They

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<v Speaker 3>said what he said is but the company is taking

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<v Speaker 3>a long term approach. That's how he described it. He

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<v Speaker 3>said the timing of when tickets go on sale it

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<v Speaker 3>can vary, makes it hard to predict consumer demand. The

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<v Speaker 3>company does plan to offer the ALEC for twenty twenty

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<v Speaker 3>six when it reports fourth quarter results, so you will

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<v Speaker 3>get it, just not now, but this is a time

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<v Speaker 3>that it was the first time it reported coarly results

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<v Speaker 3>since the IPO in September.

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<v Speaker 2>Right, Seriously, it's an unwritten understanding for an IPO. If

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<v Speaker 2>I'm going to buy into your company and I don't

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<v Speaker 2>know your company, but I'm buying it, I'm taking a risk.

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<v Speaker 2>What you owe me is at least one or two

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<v Speaker 2>quarters of good earnings. So not only did I sell

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<v Speaker 2>all my shares and stuff up today, IPO investor, I'm

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<v Speaker 2>trying to borrow as much as I can and short it.

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<v Speaker 2>That's what I'm doing.

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<v Speaker 1>This is a yeah, I'm looking at that. The percentage

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<v Speaker 1>in terms of float fifty six percent.

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<v Speaker 3>What I'm seeing on the terminal for short interest terrible.

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<v Speaker 3>Look all right, gosh, And finally I got to hit

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<v Speaker 3>Warner Brothers at WBD up as much as three percent.

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<v Speaker 3>So this is in the wall stree dhow they're saying

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<v Speaker 3>that paramount Comcast Netflix, they're preparing bids. They say there's

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<v Speaker 3>a parent cutoff for those bits of November twentieth, and

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<v Speaker 3>they're saying Warner Brothers hopes it to have it all

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<v Speaker 3>wrapped up by the end of the year. You have

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<v Speaker 3>the Bloomberg Report that they're CEO David Zadlob they're kind

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<v Speaker 3>of re amending his contract to make sure a stock

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<v Speaker 3>options remain eligible to best you know, and even if

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<v Speaker 3>it's sold. So a lot of kind of pointers in

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<v Speaker 3>that direction.

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<v Speaker 1>The Stock Movers Report from Bloomberg Radio. Check back with

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