1 00:00:02,120 --> 00:00:05,519 Speaker 1: Global business news twenty four hours a day at Bloomberg 2 00:00:05,559 --> 00:00:08,600 Speaker 1: dot com, the Radio, plus mobile, lapt and on your radio. 3 00:00:08,880 --> 00:00:12,880 Speaker 1: This is a Bloomberg Business Flash from Bloomberg World Headquarters. 4 00:00:12,920 --> 00:00:15,400 Speaker 1: I'm Katherine Cowdery Bloomberg. Taking Stock is brought to you 5 00:00:16,040 --> 00:00:19,840 Speaker 1: by c I T. From transportation to healthcare to manufacturing. 6 00:00:20,120 --> 00:00:23,520 Speaker 1: C I T offers commercial lending, leasing, and treasury management 7 00:00:23,560 --> 00:00:26,840 Speaker 1: services for small and middle market businesses. Learn more at 8 00:00:26,880 --> 00:00:29,840 Speaker 1: c I T dot com. Quit knowledge to work. We 9 00:00:29,920 --> 00:00:32,280 Speaker 1: talked to markets every fifteen minutes throughout the trading day. 10 00:00:32,280 --> 00:00:34,839 Speaker 1: Now over to the first word, breaking news Desperate. Today's 11 00:00:34,840 --> 00:00:39,720 Speaker 1: afternoon call with Bill Maloney, Bill, Good afternoon, Katherine Manure. 12 00:00:39,800 --> 00:00:42,239 Speaker 1: Savages are a little changed right now at the Dow 13 00:00:42,320 --> 00:00:45,240 Speaker 1: currently higher by thirteen points, smps are lowered by a 14 00:00:45,320 --> 00:00:48,640 Speaker 1: point in AzaC rises three. The small cap six hundred 15 00:00:48,680 --> 00:00:51,160 Speaker 1: is also a little changed, and the US ten yield 16 00:00:51,200 --> 00:00:54,200 Speaker 1: at one point eight four per cent. Six out of 17 00:00:54,200 --> 00:00:57,040 Speaker 1: tennesse V sectors are lower, led by losses and utilities, 18 00:00:57,080 --> 00:01:02,240 Speaker 1: Telecom and healthcare, games and materials, can Sumer staples and technology. 19 00:01:02,720 --> 00:01:05,840 Speaker 1: Dow Transports fall fourteen points and as a botechs game 20 00:01:06,000 --> 00:01:09,440 Speaker 1: nineteen and the vix is higher by two point nine percent. 21 00:01:09,840 --> 00:01:13,240 Speaker 1: Dow Leaders to the upside included DuPont, Apple, and Caterpillar, 22 00:01:13,520 --> 00:01:17,280 Speaker 1: while Verizon, Microsoft and Nike led to the down side. 23 00:01:17,680 --> 00:01:20,279 Speaker 1: Live in the first t breaking news Descombo Maloney, Katherine, 24 00:01:20,520 --> 00:01:22,680 Speaker 1: thank you Bill, and to hear live breaking news over 25 00:01:22,720 --> 00:01:25,200 Speaker 1: your Bloomberg type s q U A K on your 26 00:01:25,319 --> 00:01:28,280 Speaker 1: terminal oil drop for it the fourth day, the longest 27 00:01:28,319 --> 00:01:30,520 Speaker 1: stretch of declines in more than a month. Producers in 28 00:01:30,560 --> 00:01:34,240 Speaker 1: Canada work to resume operations after wildfires and a run 29 00:01:34,360 --> 00:01:38,720 Speaker 1: continued to increase exports. West Texas Centemedia crude is down 30 00:01:38,760 --> 00:01:40,800 Speaker 1: thirty two cents of barrel, trading at forty eight O 31 00:01:40,959 --> 00:01:43,240 Speaker 1: nine spot goal down a dollar twenty announced at twelve 32 00:01:45,480 --> 00:01:48,480 Speaker 1: seventy and the tenure Treasury is up one thirty second 33 00:01:48,520 --> 00:01:50,800 Speaker 1: with the yield of one point eight three percent. And 34 00:01:50,840 --> 00:01:54,840 Speaker 1: that's a Bloomberg business flash. You're listening to taking stock 35 00:01:54,920 --> 00:01:59,800 Speaker 1: with Kathleen Hayes and Pim Fox on Bloomberg Radio. This 36 00:02:00,040 --> 00:02:03,840 Speaker 1: Shares of Valley and Pharmaceuticals are down more than four 37 00:02:04,000 --> 00:02:08,440 Speaker 1: percent today, even as the company's chief executive, Joe Papa, 38 00:02:08,480 --> 00:02:12,400 Speaker 1: speaks at the UBS, a global healthcare conference in New York. 39 00:02:13,000 --> 00:02:15,639 Speaker 1: This is taking stock on Bloomberg. I'm Pim Fox, my 40 00:02:15,720 --> 00:02:18,320 Speaker 1: co host Kathleen Hayes, and we are live in Tucson, 41 00:02:18,400 --> 00:02:23,200 Speaker 1: Arizona for b n Y Melon Asset Servicings twenties sixteen 42 00:02:23,240 --> 00:02:28,400 Speaker 1: client Conference. Sacha Damuni joins us now Bloomberg Pharmaceuticals, health 43 00:02:28,720 --> 00:02:32,120 Speaker 1: Care and First Word Healthcare reporter for Bloomberg, joining us 44 00:02:32,120 --> 00:02:34,720 Speaker 1: from Bloomberg World Headquarters in New York. Sasha, thanks very 45 00:02:34,760 --> 00:02:36,600 Speaker 1: much for spending time with us. You are spending time 46 00:02:36,639 --> 00:02:41,800 Speaker 1: earlier at the UBS Healthcare Conference. What what did Valiant 47 00:02:41,800 --> 00:02:47,000 Speaker 1: Pharmaceuticals not say that investors were looking for? It was 48 00:02:47,000 --> 00:02:50,640 Speaker 1: a good morning at the UBS Healthcare conference. Valiant was 49 00:02:50,680 --> 00:02:53,360 Speaker 1: their Allergan was there in metivation. So these are some 50 00:02:53,440 --> 00:02:57,560 Speaker 1: really topical companies that everyone's looking at in terms of investors. 51 00:02:57,600 --> 00:03:00,720 Speaker 1: So what's happening with Valiant is we want to really 52 00:03:00,760 --> 00:03:03,919 Speaker 1: get a feel of what Joe Papa, he's been at 53 00:03:03,960 --> 00:03:07,200 Speaker 1: his tenures as the CEO for a few weeks now 54 00:03:07,680 --> 00:03:11,400 Speaker 1: and he sort of had a neutral stance on what's 55 00:03:11,400 --> 00:03:14,000 Speaker 1: going on. So he sort of said, look, we have 56 00:03:14,080 --> 00:03:16,960 Speaker 1: a very good pipeline of new drugs. But he did 57 00:03:17,000 --> 00:03:20,079 Speaker 1: say they haven't been fully appreciated. But then his second 58 00:03:20,400 --> 00:03:23,840 Speaker 1: his second point was, look, we're working through the quote 59 00:03:23,960 --> 00:03:27,040 Speaker 1: speed bumps with that with with Walgreens. So if you 60 00:03:27,200 --> 00:03:30,840 Speaker 1: kind of look back Mike Pearson, the former CEO, his 61 00:03:30,919 --> 00:03:35,440 Speaker 1: predecessor UM, he signed a pact with Walgreens for their dermatology, 62 00:03:35,960 --> 00:03:39,200 Speaker 1: for the dermatology assets, and we're starting to see sales 63 00:03:39,200 --> 00:03:42,640 Speaker 1: come in and UM and they they're just not looking 64 00:03:42,680 --> 00:03:45,400 Speaker 1: good in terms of the prescriptions that are coming in. 65 00:03:45,480 --> 00:03:48,120 Speaker 1: That the data is not reading right investors. So the 66 00:03:48,400 --> 00:03:51,760 Speaker 1: real question is how is this major pact doing. What's 67 00:03:51,760 --> 00:03:54,080 Speaker 1: it doing for the company. And he's just trying to 68 00:03:54,120 --> 00:03:55,920 Speaker 1: get around it. So I think that we need to 69 00:03:55,920 --> 00:03:58,120 Speaker 1: figure out what these speed bumps are. We need more 70 00:03:58,160 --> 00:04:00,640 Speaker 1: color there. He also talked a bit or about his 71 00:04:00,920 --> 00:04:04,520 Speaker 1: irrital boll syndrome product Za facts in UM. They said 72 00:04:04,520 --> 00:04:07,600 Speaker 1: that's that's UM that that has strong patent protection and 73 00:04:07,680 --> 00:04:10,680 Speaker 1: that's been a concern. And then the other thing UM 74 00:04:10,720 --> 00:04:14,480 Speaker 1: obviously Valiant vault a company last year Spruce Spruce Pharma 75 00:04:14,560 --> 00:04:17,520 Speaker 1: for Addie, which is their libido pill. They spent a 76 00:04:17,520 --> 00:04:21,640 Speaker 1: billion dollars on this company and prescriptions have been lackluster. 77 00:04:21,920 --> 00:04:25,159 Speaker 1: So he also said they're going to relaunch Addie. So 78 00:04:25,320 --> 00:04:29,200 Speaker 1: let's watch the space on the Valiant commentary. Well, so 79 00:04:29,320 --> 00:04:32,040 Speaker 1: Sasha just just sum it up for us in this sense. 80 00:04:32,839 --> 00:04:36,159 Speaker 1: He focused on speed bumps with Walgreens and other things. 81 00:04:36,200 --> 00:04:40,280 Speaker 1: But our investors satisfied that since Mike Pearson left, there 82 00:04:40,320 --> 00:04:43,160 Speaker 1: was all the turmoil over accounting price increases, there was 83 00:04:43,200 --> 00:04:46,440 Speaker 1: a now separate relationship with a controversial mail order pharmacy. 84 00:04:46,600 --> 00:04:48,280 Speaker 1: Did they need to hear more about that or are 85 00:04:48,279 --> 00:04:50,279 Speaker 1: they just willing to put that behind and look what's 86 00:04:50,320 --> 00:04:53,600 Speaker 1: on the table now looking forward. No, I don't think 87 00:04:53,600 --> 00:04:55,640 Speaker 1: they're ready to put anything behind in the In the 88 00:04:55,680 --> 00:04:58,479 Speaker 1: case of Valiant, I think that a lot of investors 89 00:04:58,480 --> 00:05:02,600 Speaker 1: were actually pretty disgruntled their questions with the company regarding 90 00:05:02,600 --> 00:05:06,920 Speaker 1: the way Joe Papa left Parago. Obviously, Parago had um 91 00:05:07,240 --> 00:05:09,640 Speaker 1: m N a UM offer on the table last year 92 00:05:09,680 --> 00:05:12,800 Speaker 1: by Milan Uh the CEO walked away said look, look, 93 00:05:12,839 --> 00:05:15,440 Speaker 1: I want to grow the company. I'm focused on on 94 00:05:15,440 --> 00:05:18,320 Speaker 1: on on, you know, sort of focusing on what we're 95 00:05:18,360 --> 00:05:20,839 Speaker 1: doing internally, and we're not going to sell the company. 96 00:05:20,920 --> 00:05:24,320 Speaker 1: So investors are upset because shares kept declining after that 97 00:05:24,360 --> 00:05:27,520 Speaker 1: he really didn't create shareholder value. So I think they're 98 00:05:27,520 --> 00:05:31,000 Speaker 1: concerned that he walked away. He seemed disloyal to Parago. 99 00:05:31,080 --> 00:05:34,440 Speaker 1: He brought down the shares in the last twelve months. Obviously, 100 00:05:34,760 --> 00:05:38,080 Speaker 1: during his tenure there, the shares did increase, they did 101 00:05:38,120 --> 00:05:41,080 Speaker 1: go up, but um, but in the last twelve months 102 00:05:41,120 --> 00:05:44,400 Speaker 1: it's been pretty lackluster, and they had hoped that he 103 00:05:44,440 --> 00:05:49,039 Speaker 1: could have selled to Myland. It's Sasha Allergan shares it 104 00:05:49,040 --> 00:05:50,760 Speaker 1: down a little bit more than one and a half 105 00:05:50,800 --> 00:05:54,400 Speaker 1: percent right now. Tell me what Brett Saunders, the chief 106 00:05:54,400 --> 00:05:56,760 Speaker 1: executive Allergam, was talking about when I had to do 107 00:05:56,839 --> 00:06:01,400 Speaker 1: with that generic business that's being sold to Tava Pharmaceuticals 108 00:06:01,400 --> 00:06:04,279 Speaker 1: in Israel. So that was really the topic of the 109 00:06:04,400 --> 00:06:07,320 Speaker 1: day and people were asking, what's going on with this 110 00:06:07,480 --> 00:06:11,359 Speaker 1: forty billion dollar deal to sell its generics business to Tava. 111 00:06:11,520 --> 00:06:14,720 Speaker 1: And it sounds pretty good, actually, it says um Brent 112 00:06:14,760 --> 00:06:17,719 Speaker 1: Saunders said that the sale could close within weeks, and 113 00:06:17,800 --> 00:06:21,320 Speaker 1: people have been concerned about antitrust issues. It's a huge deal, 114 00:06:21,400 --> 00:06:24,039 Speaker 1: is going to make Tava a massive powerhouse and they're 115 00:06:24,040 --> 00:06:26,440 Speaker 1: going to have to make divestitures. But from what it 116 00:06:26,520 --> 00:06:29,520 Speaker 1: sounded like the body language was positive and the wording 117 00:06:29,600 --> 00:06:32,400 Speaker 1: was positive. TAVA and the government have been working together 118 00:06:32,560 --> 00:06:36,480 Speaker 1: on this constructively. So even though shares are down, obviously 119 00:06:37,279 --> 00:06:39,760 Speaker 1: people were asking about M and A. He said they're 120 00:06:39,760 --> 00:06:42,039 Speaker 1: not going to make large deals right now until there's 121 00:06:42,080 --> 00:06:44,880 Speaker 1: more clarity on this. So he did say more deals 122 00:06:44,880 --> 00:06:48,760 Speaker 1: are to come, more deals in the billions of dollar range. 123 00:06:49,279 --> 00:06:52,599 Speaker 1: So still still sounds like an exciting year for allghan 124 00:06:53,360 --> 00:06:58,000 Speaker 1: quick comment on metivation, Sasha Duty, So metivation, the buzz 125 00:06:58,040 --> 00:07:02,760 Speaker 1: around metivation based clear. The CEO David Hung has a 126 00:07:02,880 --> 00:07:06,040 Speaker 1: very high threshold for an M and A price, and 127 00:07:06,200 --> 00:07:07,880 Speaker 1: it sounds as if it's going to be difficult for 128 00:07:07,960 --> 00:07:10,920 Speaker 1: him to budge on coming down on that price. He's 129 00:07:10,960 --> 00:07:13,880 Speaker 1: a founder, He's this is his darling, so he thinks 130 00:07:13,920 --> 00:07:16,920 Speaker 1: that should go at evaluation. That is probably sort of 131 00:07:17,000 --> 00:07:20,800 Speaker 1: misaligned with the market right now. Sasada Moody, you've been 132 00:07:20,800 --> 00:07:23,400 Speaker 1: covering these conferences for so long. First word healthcare reporter 133 00:07:23,520 --> 00:07:25,960 Speaker 1: for Bloomberg on the latest news of the UBS Healthcare 134 00:07:25,960 --> 00:07:28,360 Speaker 1: conference in New York city of Kathe Hayes. Along with 135 00:07:28,400 --> 00:07:32,640 Speaker 1: Pimco Box, we are at a conference in near Tucson, Arizona. 136 00:07:32,920 --> 00:07:36,040 Speaker 1: It's invested sixty the power of big ideas b n 137 00:07:36,120 --> 00:07:40,240 Speaker 1: Y balanced client conference. Up next to look at people 138 00:07:40,320 --> 00:07:47,960 Speaker 1: leading hedge funds. This is Blooper Radio Bloomberg. Taking stock 139 00:07:48,000 --> 00:07:50,480 Speaker 1: has brought you by S, S and C more experienced, 140 00:07:50,520 --> 00:07:54,200 Speaker 1: superior technology, independence and expertise. That's how S, S and 141 00:07:54,320 --> 00:07:57,360 Speaker 1: C drives the future of fund administration. S, S and 142 00:07:57,440 --> 00:07:59,560 Speaker 1: C there are the future of fund administration.