Shire Pharmaceuticals (SHP) Gains US Approval for Alzheimers Drug

Uncle

Established member
Shire Pharm. of the UK on Thursday gains approval from the US drug regulators for the sale of Reminyl, Shire's treatment for Alzeimers disease.

Price down 72 (5.97%) at time of posting this. So much for good news !!!!

John
 

Burney

Junior member
Shire

Hi Uncle-I am holding Shire in my ISA -like you I cannot understand why it has tanked in the last couple of days-coming back a bit now though but still way off what it was coupe of days ago-anyone any thoughts ???
 

Nipper

Junior member
Seen it many times before. Buy on confirmation of bearish fact (joe bloggs is selling), sell on confirmation of bullish fact (joe bloggs is buying). Alternatively wait for it to settle and follow normal TA and fundamentals.
 

Burney

Junior member
Shire

Thanks Nipper,
Good advice-seems that the MM's have had their fun as it has come back nearly 70p off its lows although still down on the day-have hung on in as I believe in Shire longer term but get cheesed off with the volatilty that is displayed these days for no apparnet good reason.
 

Uncle

Established member
Closed tonight,Friday,at 1169 down 37, but do we have the signs of a reversal? Volume is 414.91% above average for the last 50 days - more buys than sells - and the Candle chart shows a long lower shadow - which is bullish, and Williams moves upwards out of the oversold area to 76. However, my next support line is at 1025, well below the current price and other indicators still heading south, and the lower BB at 1209.8

Caution is the watchword, but certainly worth keeping an eye on with a view to possible short term profits once more.

Watch out for MM's shenanigans though !!

Best wishes

John
 
Been watching today and i agree with John. i'll wait until i'm sure, certainly not first thing, but there could be something for the none too greedy.
Steve
 

Uncle

Established member
From Financial Times 03/03

"Shire Pharmaceuticals fell 37 to £11.69 as dealers arbitraged ahead of the $4bn merger with BioChem Pharma of Canada, selling shares in the speciality drug group and buying BioChem."

Where does this leave us???

John
 
thanks for that John.
It leaves me very cautious...i thought this was already in the price when i bought back in December @ 1001p.
I still think there will be an opportunity but i'd sooner miss it than take the risk.
Steve
 

Riz

Experienced member
back to SHP?

Hi everyone, so we're back to watching SHP? It looks like there are a few reasons to the current price pull back:

Arbitrageing as Uncle said: I'd watch this, last time they did this in mid December when they managed to pull the price down by £2...

Disappointment over the decision on what Shire could include on the contents of the label...

Quoting from FT: An analyst at CSFB said the share move was also the result of technical factors relating to Shire's $4bn all share acquisition of BioChem Pharma, which closes later this month...

BUY advices has started with today's Midas column though noting the risk, but also valuing it about $6b dollar in a few months when the biochem deal is completed...needless to say that's twice as much as the current valuation...

The price however fell below the support level leaving us without a strong support around the current level, I do recall a few of us making nice profit on SHP in Dec. and Jan...why spoil it? I think I'd rather wait for a proper support to be formed or for the price to complete its pull back which could well be around £11...

good luck

Riz
 

Riz

Experienced member
still pulling back...

Down today -6.0 to 1163...so it's still wise to wait for a proper support to be formed...

Riz
 

Riz

Experienced member
down as expected...

Down as expected -54 (-4.6%) to 1126..as the 15 day price setting period for the Biochem Pharma deal kicks in igniting the arbitrage situation...CSFB in the mean time reiterated its “buy” stance and £13 price target..though warning about short-term weakness as we've done here...

This situation provides a good buying opportunity if one is patient enough to wait for the arbitrage situation to end...support is not too far from this point, but we're just not there yet..I'll be watching SHP...

Riz
 
Selling pressure in the Exchange’s selling auction saw Shire Pharmaceuticals lose 54p to 1,126p according to The Daily Telegraph. The Guardian says those selling shares should contact CSFB as its broker reckons current weakness ahead of the acquisition of BioChem Pharma represents a buying opportunity.
 

Riz

Experienced member
Dresdner Kleinwort Wasserstein advised its clients to switch out of Celltech Group (CCH) which it continues to rate as a “reduce” at £13.60 and into SHP which it continues to rate as an “add” at £11.26...

Riz
 

Riz

Experienced member
Closed the day down -6 to 1120...after dipping down to 1045 early morning prividing a geat daytrade opportunity and suggesting it's still early to get in longer term...

Volume was heavy; 18m with buy: 7,590,760 sell: 9,163,636 ?: 1,258,123 according to advfn...most last minute and afterhours trades being sells...

Riz
 

Uncle

Established member
Latest on the Merger

The following announcement has been made by the company today 13/03:

"Shire has become aware of an increasing number of enquiries as to the current status of the timetable to completion of the proposed merger with BioChem. In order to try to clarify the situation, the Board of Shire announces that the proposed merger with BioChem is proceeding satisfactorily with the integration planning well under way.

The merger is conditional, inter alia, on the Minister of Industry Canada's approval as well as the approval of both Shire and BioChem shareholdersa at meetings to be held on the 29 March 2001. Shire announces it has received notification from the Director of Investments under the Investment Canada Act that the period of his review of the proposed merger has been extended.

Discussions are continuing with the Director of Investments and the Board of Shire remains confident that the approval will be forthcoming, although the timing of such approval cannot be forecast with certainty. As a consequence completion of the merger, which is expected to occur on the 30 March2001 could be delayed. The Board currently believes that the period of any delay is unlikely to be significant."

......................


Has anyone else been on the roller coaster with this stock this week????????

John
 
SHP now almost back to where i first bought it and i can only think it's a normal market cycle ( as with CAT )
I think both are worth following and wait for the first solid sign of reversal.
Steve
 

ChartMan

Legendary member
Broken long term up trend line support @ 1040 today ( dating back to Aug 99)- but only 6p down.
Next support may be found at 930......
 

Uncle

Established member
Agree with you Steve. It droped below my support at 1020 today to 1003, but recovered to close at 1034.

However, dont rush in yet, it might just go down to the next support at 950, where it was in December before it took off to rise to 1357 intraday.

Like you keeping a eye on it

John
 

Riz

Experienced member
Down -140 (-13.9%) to 865...it is still something to do with the share-swap deal to acquire Canada's BioChem Pharma Inc... we can't possibly know where it will stop falling until the calculation period for averaging Shire's share price is announced...as they are still wating for the final completion date for the deal which depends on clearance from Canadian anti-trust regulators...and that has been delayed...

So just watching for the time being I'd say...

Riz
 
 
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