Clovis jumps outright, on swap; Medicines, Horizon Pharma trade; Asian internet names eyed

By Rebecca Melvin

New York, April 13 – Clovis Oncology Inc.’s convertibles surged on an outright basis and opened up on a dollar-neutral basis in active trade on Monday as shares of the Boulder, Colo.-based biotechnology company jumped following a Goldman Sachs upgrade that included the opinion that the company has increased M&A prospects, traders said.

Also in the health care space, the Medicines Co.’s convertibles traded actively amid news that the company’s intravenous blood clot preventer is likely to be approved by the U.S. Food and Drug Administration.

The Medicines bonds have been “very resilient,” a trader said, adding that market players had not been involved in the name with the preannouncement in mind.

Horizon Pharma plc’s convertibles changed hands at 126 during the session when shares were essentially unchanged. After the market close, the Dublin, Ireland-based specialty pharmaceutical company announced a secondary stock offering for 12 million shares, and shares slipped in after-hours action.

On Friday, Horizon announced that its Actimmune treatment for a degenerative neuro-muscular disorder received fast track designation from the FDA.

Horizon priced its $400 million offering of 2.5% convertibles in early March. The secondary stock offering was seen as coming fast on the heels of the convertible deal.

“They are really packing in the dry powder,” a trader said.

Several Asian internet names were active in trade that represented follow-through on the back of strength last week.

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