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The Markets
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Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Pharma & Biotech

MORNING MOVERS: Celgene crashes as Bristol-Myers takeover thrown into doubt

Also in play in are Square Inc, Box Inc and HP Inc

Celgene Corp (NASDAQ:CELG) shares tanked after the open as it emerged that investment firm Wellington Management did not support Bristol-Myers' acquisition of the biotech giant, throwing the takeover into doubt. Wellington Management Co, which holds 7.7% of Bristol's shares, said that it did not believe the Celgene transaction is an "attractive path" for broadening Bristol-Myers’s business. Last month, Bristol-Myers Squibb (NYSE:BMY) unveiled plans to buy cancer drugmaker Celgene in a cash and paper deal valued at an eye-watering $74 billion. Wellington says the acquisition asks Bristol's shareholders to accept too much risk.

Celgene shares lost 7.7% to $84.03. Bristol-Myers Squibb nudged up 1.7% to $51.84.

Square Inc (NYSE:SQ) shares lost ground as the California-based financial services company issued a profit forecast for the current quarter, which missed analysts’ estimates, as it was hit by an increase in spending on newer services. Earnings before interest, taxes, depreciation and amortization (EBITDA) will be between $47 million and $51 million, Square said. Analysts had estimated $70.4 million.

The shares shed nearly 3% to stand at $77.

Box Inc (NYSE:BOX) saw shares tank after the cloud-storage company's outlook fell well short of Wall Street expectations. The California-based company said it now expects an adjusted loss of between $0.05 and $0.06 per share on revenue of between $161 million and $162 million in the first quarter, and a loss of $0.04 per share to positive earnings per share of $0.01 on revenue of between $700 million and $704 million for the year. Analysts had forecast a loss of $0.01 a share on revenue of $169.7 million for the first quarter and earnings of $0.03 cents a share on revenue of $732.8 million for the year.

The stock dove 20% to $19.85.

HP Inc (NYSE:HPQ), or Hewlett-Packard, saw shares plunge as the computer titan posted quarterly revenue that fell short of Wall Street estimates due to weaker-than-expected sales in both the personal computer and printing businesses.

The shares lost more than 15% to $20.08.

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