HZNP Stock Topples After J&J Pulls Out Of Bidding War

Johnson & Johnson (JNJ) dropped out of the bidding process for Horizon Therapeutics (HZNP), pushing HZNP stock into the red on Monday.




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The decision leaves only Amgen (AMGN) and Sanofi (SNY) in the ring for potential offers to buy Horizon, a maker of rare disease treatments. Last month, Horizon said the three Big Pharma stalwarts were in “highly preliminary discussions” for potential bids. Horizon, which is based in Ireland, made the process public due to merger rules in that country.

On the stock market today, HZNP stock toppled 6.1% to 98.48.

HZNP Stock Reverses Uptrend

Each of its suitors has until Jan. 10 to make a decision on whether to make a bid, Horizon says. J&J’s Janssen division was one of the named suitors. But analysts noted Johnson & Johnson just announced a $16.6 billion plan to acquire medical devices company Abiomed (ABMD).

HZNP stock gapped up on Nov. 30, the day after it announced the potential takeover bids. Shares have trended higher in the days since. The move Monday reverses the three-day sprint, though shares remain above their key moving averages.

Horizon is known best for its thyroid eye disease treatment Tepezza. Tepezza sales have been pressured amid supply chain challenges due to the pandemic. It also sells Krystexxa, a treatment for chronic gout, and Uplizna, which treatment an inflammatory disorder of the optic nerves and spinal cord.

Still, shares have a strong Relative Strength Rating of 96, putting them in the leading 4% of all stocks when it comes to 12-month performance, according to IBD Digital. HZNP stock also has a Composite Rating of 92. This means Horizon’s technical and fundamental metrics rank in the top 8% of all stocks.

Follow Allison Gatlin on Twitter at @IBD_AGatlin.

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Source: https://www.investors.com/news/technology/hznp-stock-topples-after-jj-pulls-out-of-bidding-war/?src=A00220&yptr=yahoo