PTC Therapeutics up on regulatory nod; market quiet; response to energy bankruptcies muted

By Rebecca Melvin

New York, April 15 – PTC Therapeutics Inc.’s convertibles rose in line with their underlying shares on Friday after news that the South Plainfield, N.J.-based pharmaceutical company’s drug, Translarna, has been granted preliminary approval for use in some patients in England.

Translarna is sold in the European Union, after the bloc approved it for use in 2014. But it is not currently used in the United Kingdom, and in February, the company was dealt a blow when U.S. regulators rejected the company’s marketing application for the drug, saying evidence to support its use was not efficacious enough.

The PTC Therapeutics bonds were indicated up at 43 on Friday from 38 previously. In February, the bonds had fallen to about 55.5 from 81.

The health care sector in convertibles remained stronger overall, despite profit-taking early in the week and mostly mixed trading action in subsequent days. But the tone is better with a stronger bid since the Pfizer Inc. and Allergan plc merger deal broke apart last week.

Meanwhile, several bankruptcies among convertibles issuers this week did little to spur market action.

“Nothing has changed,” a Connecticut-based trader said of the market despite news on Friday that Goodrich Petroleum Corp. has filed for reorganization under Chapter 11 bankruptcy and SunEdison Inc. confirmed that is has entered into confidentiality agreements with certain lenders regarding proposed debtor-in-possession financing, a precursor to bankruptcy.

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