Monday Morning’s Market Insights: Breitburn Energy Partners LP (BBEP), Nanosphere, Inc. (NSPH), Anacor Pharmaceuticals Inc (ANAC), Trevana Inc (TRVN)


Breitburn Energy Partners LP (NASDAQ:BBEP) is plummeting 58% in pre-market trading after the company filed for Chapter 11 bankruptcy protection. The company claimed it secured $75 million, in addition to its cash on hand and cash from operations, to fund operations during the process. In the filing, the company listed assets of $1-$10 billion, with $1-$10 billion in debt. As a result, the company has been removed from the Alerian Small Cap MLP index. Like many other oil companies, the company has struggled with falling commodity prices and high debts.

CEO Hal Washburn stated “The prolonged decline in commodity prices that began in 2014 has placed significant financial stress on today’s oil and gas industry. Our long-lived, low-decline portfolio of diverse assets continues performing in line with our expectations, but the current outlook for commodity prices makes our existing debt burden unsustainable. Taking this action now gives us flexibility in maximizing the value of the ongoing business. … to create a stronger and more financially sound company for the benefit of all our stakeholders.”

According to TipRanks, out of the 2 analysts who have rated the stock in the past 3 months, 1 gave a Sell rating while the other remains neutral. The average 12-month price target for the stock is $0.10, marking a 47% downside from where shares last closed.

Nanosphere, Inc. (NASDAQ:NSPH) is soaring 69% in pre-market trading after the company announced it would be acquired by Luminex Corporation for about $58 million. The board of directors of each company have both voted to approve the merger, claiming it would increase overall revenue growth. The company’s plan to take advantage of the resulting synergies as Nanosphere’s strong molecular microbiology presence and customer base will add to that of Luminex, providing more avenues for growth. Moreover, Nanosphere’s Verenge technology will enhance Luminex’s infectious disease portfolio. The transaction is expected to close in the second quarter of Luminex’s fiscal 2016.

According to TipRanks’ statistics, 2 analysts have rated the stock in the past 3 months with a Buy rating. The average 12-month price target between these 2 analysts is $2.00, marking a 156% upside from where shares last closed.

Anacor Pharmaceuticals Inc (NASDAQ:ANAC) is up 54% after the announcement that Pfizer will buy the company for about $5.2 billion. The company is mainly interested in crisaborale, Anacor’s topical eczema treatment that is currently being review by the FDA. Pfizer believes that if approved, sales of the drug could exceed $2 billion and will help the company enter the under-served market of patients with eczema, as few safe treatments are currently available. Pfizer predicts the acquisition will contribute positively to its adjusted earnings per share in 2018, growing steadily.

According to TipRanks, all 4 analysts who have rated the company in the past 3 months gave a Buy rating. The average 12-month price target for the stock is $134.00, marking a 109% upside from where shares last closed.

Trevana Inc (NASDAQ:TRVN) is falling over 15% in pre-market trading after the company announced that TRV027, its intravenous drug candidate, failed to meet both primary and secondary endpoints in a phase 2b BLAST-AHF study in acute heart failure. Data from the trial will be presented at a conference on May 21. The company is now focusing on its lead phase 3 oliceridine pain program as well as additional earlier stage programs.

CEO Maxine Gowen, Ph.D., stated, “It is always disappointing when an investigational product fails to support a promising hypothesis in a clinical trial.” She continued, “We remain confident in our Phase 3 oliceridine program, which has been granted Breakthrough Therapy designation by the FDA, as well as our earlier stage opportunities and platform, and we remain committed to bringing innovative new medicines to patients to treat serious medical needs.”

According to TipRanks, all 7 analysts who have rated the company in the past 3 months gave a Buy rating. The average 12-month price target for the stock is $15.50, marking a 127% upside from current levels.