Morning Commentary: New PTC Therapeutics holds up against weaker shares; Exelixis shares slip

By Rebecca Melvin

New York, Aug. 11 – PTC Therapeutics Inc.’s newly priced 3% convertibles were bid higher in the early going on Tuesday despite sharply lower common shares after the South Plainfield, N.J.-based pharmaceutical company priced $125 million of seven-year senior notes in an overnight deal at the cheap end of talked terms.

The new PTC Therapeutics 3% convertibles due 2022 were seen at 100.375 bid with the stock down about 7% at about $40.00, a New York-based trader said.

Given that the stock is down, it was doing well, the trader said.

Elsewhere, Exelixis Inc.’s 4.25% convertibles due 2019 were last seen at about 125, but they weren’t heard in trade yet Tuesday with the underlying shares near $5.75, which was down nearly 4%.

The South San Francisco, Calif.-based biotechnology company is set to report quarterly results after the market close. In July it announced positive results for a phase 3 trial of a kidney cancer drug that sent its shares surging by 50% and its convertibles up more than 30 points.

Exelixis said the trial comparing cabozantinib to everolimus in 658 patients with metastatic renal cell carcinoma met its primary endpoint.

In the broader markets, equities were weak after news that China moved to devalue its currency in an effort to prop up its slowing economy.

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