Horizon Pharma jumps outright, adds on hedge; health-care bid remains strong; Intel active

By Rebecca Melvin

New York, March 30 – Horizon Pharma plc’s exchangeable bonds jumped on an outright basis and expanded on a dollar-neutral basis on Monday after news that the Dublin, Ireland-based specialty pharmaceutical company has agreed to buy Hyperion Therapeutics for $46.00 per share in cash, or about $1.1 billion.

The health care space had other M&A news on Monday, including Teva Pharmaceutical Industries Ltd.’s bid to buy Auspex Pharmaceuticals Inc. for $101.00 per share, or about $3.5 billion in cash, which represented a 42% premium over Auspex’s Friday closing share price.

Teva's 0.25% convertibles due 2026 were seen trading at 144 and 148.73, according to Trace data, which was little changed compared to 144 and 148 on Friday.

In additional health insurance company news, UnitedHealth Group Inc. said it is buying Catamaran Corp., a benefits manager, for $61.50 per share in cash, or about $13 billion.

The M&A news helped maintain the bid in health care convertibles that resurfaced on Friday. BioMarin Pharmaceutical Inc.’s convertibles surged outright and were mixed on hedge on Friday and continued to see some trading action on Monday as market players maintain a watchful eye on the takeover target.

Topping the Trace volume tape were Intel Corp.’s convertibles, which were mixed in busy trade, that was related to the M&A chatter on Friday when there were reports the chip giant is in talks to buy Altera Corp., a New York-based trader said.

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