AMAG Pharmaceuticals tumbles outright on earnings miss; Priceline edges up; Ctrip in line

By Rebecca Melvin

New York, Nov. 3 – AMAG Pharmaceuticals Inc.’s convertibles plunged on an outright basis in active trade on Tuesday after the Waltham, Mass.-based specialty pharmaceutical company reported quarterly results that missed estimates. AMAG common shares fell 23%.

On a hedged basis, the AMAG convertibles expanded about a point on a heavy delta of 90%, according to one trader, while on a lighter delta of about 85%, the bonds were seen to have contracted about 0.625 point, a second trader said.

AMAG guided full-year estimates for its largest drug, Makena, lower, although total full-year revenue remained in line with previous expectations.

Elsewhere Priceline Group Inc.’s convertibles were active, with the Priceline 0.3% convertibles last quoted at 130.75 versus an underlying share price of $1,471.50. That represented a slight gain on a swap basis.

“Depending on delta, it was up a little, like about three teenies,” a New York-based analyst said.

Ctrip.com International Ltd. was trading in line on a swap basis, but lower on an outright basis, as shares of the Shanghai-based travel services company slipped. The securities were taking another breather between outsized gains notched following news of its Qunar merger.

The Ctrip 1.25% convertibles due 2018 traded at 134 to 135, which was down from 135 to 136 on Monday.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.