HALISTER1: AB Science Worth Only EU5/Shr After French Agency Ruling: Oddo

AB Science Worth Only EU5/Shr After French Agency Ruling: Oddo

(Bloomberg) -- A period of doubt opens up and AB Science stock could “durably” suffer from market skepticism as it’s clear mastocytosis treatment won’t be authorized in Europe, Oddo & Cie analyst Sebastien Malafosse writes in note.
  • Cuts rating to ‘reduce’ from ‘buy,’ PT to EU5 from EU48
  • NOTE: French national medicine agency requested AB Science temporarily suspends masitinib clinical studies
    • AB Science shares suspended in Paris at co.’s request, closed at EU15.39 on Thursday, down 6.4%
  • It won’t be enough to secure another green light from ANSM, it will also have to motivate patients and investigators to pursue trials
  • Valuation based on ALS indication alone of EU6.2 presents no real upside, net cash -EU1.2/share, so co. is worth only EU5/shr
  • In separate note Kepler Cheuvreux analyst Arsene Guekam says to expect a “massive” valuation impact
  • Puts rating and PT under review (from previously EU27)
  • Expect negative EMA decision next week on mastocytosis; decision on ALS indication will depend on co.’s ability to demonstrate that new procedures implemented since 2015 comply with good clinical practices and pharmacovigilance procedures
  • In a best-case scenario valuation impact will rely on delay of approval in mastocytosis
  • In a less favorable case, 2 issues may arise: other regulators’ decisions on masitinib and ANSM can keep its decision despite audit
    • Says masitinib project would be dead in this case

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
AB FP (AB Science SA)

People
Sebastien Malafosse (Oddo & Cie SCA)
Arsene Guekam (Kepler Capital Markets/Zurich)

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UUID: 7947283

HALISTER: Sprint, Softbank Said to Start Early Deal Talks With T-Mobile

Sprint, Softbank Said to Start Early Deal Talks With T-Mobile

(Bloomberg) -- Executives of SoftBank and Sprint have had informal contact with T-Mobile owner Deutsche Telekom about a transaction, according to people familiar with the matter.
  • Banks haven’t been formally hired, although financial firms are jockeying for roles if a deal comes together
  • Representatives for Sprint, SoftBank, T-Mobile and Deutsche Telekom declined to comment

Alert: HALISTER
Source: BFW (Bloomberg First Word)

Tickers
DTE GR (Deutsche Telekom AG)
9984 JP (SoftBank Group Corp)
S US (Sprint Corp)
TMUS US (T-Mobile US Inc)

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UUID: 7947283