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Tetraphase announces positive top-line results from Phase IGNITE4 trial

Tetraphase announces positive top-line results from Phase3. See StockwinnersTetraphase Pharmaceuticals (TTPH) announced positive top-line results from #IGNITE4, the company’s phase 3 clinical trial evaluating the efficacy and safety of twice-daily intravenous #eravacycline compared to meropenem for the treatment of patients with complicated intra-abdominal infections.

Tetraphase Pharmaceuticals, Inc. develops various antibiotics for the treatment of serious and life-threatening multidrug-resistant infections. Its lead product candidate is eravacycline, an intravenous and oral antibiotic for use as a first-line empiric monotherapy to treat resistant and multidrug-resistant infections, including multidrug-resistant Gram-negative infections.

Meropenem, sold under the brandname Merrem among others, is an broad-spectrum antibiotic used to treat a wide variety of infections.

It gained US FDA approval in July 1996. It was initially marketed by AstraZeneca (AZN). It is on the World Health Organization’s List of Essential Medicines, the most effective and safe medicines needed in a health system.

Noninferiority trials are intended to show that the effect of a new treatment is not worse than that of an active control by more than a specified margin.

The results of #IGNITE4, which enrolled 500 patients, demonstrated statistical non-inferiority of eravacycline to meropenem for the primary efficacy endpoint of clinical response at the test-of-cure visit.

Noninferiority trials are intended to show that the effect of a new treatment is not worse than that of an active control by more than a specified margin.

PRICE RANGE

TTPH closed Tuesday’s trading at $6.90. It traded as high of $8.72 in extended trading. Shares have a 52-weeks trading range of $3.11 – $9.93.

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China’s Growth Forecast Boosts Miners and Basic Materials

Shares of industrial metal makers, miners surge on IMF’s China comments

Shares of industrial metal makers, miners surge on IMF's China comments. See Stockwinners.com for stocks to buy, stocks to watch, stocks to trade

Shares of industrial metal makers and miners are surging after the latest International Monetary Fund, or #IMF, update.

GLOBAL RECOVERY

The global economic recovery is on solid ground, said the IMF in a report out Monday. “As in our April forecast, the World Economic Outlook Update projects 3.5% growth in global output for this year and 3.6% for next,” the IMF predicted.

CHINA GROWTH CONTINUES

Government policies in China have been the foundation for the recent high growth rates in the country. The IMF has raised its China growth view for 2017 and 2018 by 0.1% and 0.2% points, respectively, to 6.7 % and 6.4%. “But higher growth is coming at the cost of continuing rapid credit expansion and the resulting financial stability risks. China’s recent moves to address nonperforming loans and to coordinate financial oversight, therefore, are welcome,” added the agency.

MUTED EXPECTATIONS FOR US GROWTH

The IMF said the said globally speaking, the critical hindrance to global growth will come from the United States. “Over the next two years, U.S. growth should remain above its longer-run potential growth rate. But we have reduced our forecasts for both 2017 and 2018 to 2.1 percent because near-term U.S. fiscal policy looks less likely to be expansionary than we believed in April,” argued the IMF.

COPPER SURGES

Copper prices jumped to the highest levels since this past February. According to a Citi research note,”Sentiment towards copper from the physical market has improved as fabricators in China have replenished their inventories,” said Reuters.

STOCKS TO WATCH

Shares of metal makers and miners are all higher in afternoon trading, with copper miners Freeport-McMoRan (FCX) and Southern Copper Corporation (SCCO) up 14% and 3%, respectively. Iron ore miners Cliffs Natural Resources (CLF) is up 5%, with peers Vale S.A. (VALE) and Rio Tinto plc (RIO) both up over 4%. Aluminum makers are also jumping, with Alcoa up almost 2%, with peers Century Aluminum (CENX) up 4% and Kaiser Aluminum (KALU) up fractionally. Shares of United States Steel Corporation (X) are 5% higher.

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Cott Corp. to Sell Beverage Manufacturing Business for $1.25B

Cott Corp. agrees to sell traditional beverage manufacturing business for $1.25B

Cott Corp. to Sell beverage manufacturing business for $1.25B. See Stockwinners.com for a list of Stocks to Watch, Stocks to Buy, Stocks to Follow

Cott Corporation (COT) announced that it has entered into a definitive agreement to sell its traditional beverage manufacturing business to Refresco for $1.25B.

The transaction includes Cott’s North America, U.K., and Mexico businesses.

The transaction is expected to: Improve top-line growth and stability; Enhance overall gross profit and EBITDA margins; Significantly reduce net leverage; Reduce customer concentration; Reduce commodity exposure; Shift Cott’s core focus to the growing categories of water, coffee, tea and filtration.

The transaction is expected to reduce Cott’s leverage to below 3.5x net debt to 2017 pro forma adjusted EBITDA after sale proceeds are used for the redemption of the remaining $250 million of our 10% DS senior secured notes, $525 million of our 5.375% notes, and paying off our asset-based lending facility.

As a result of the redemption of our 5.375% notes, we expect to commence asset sale proceed offers on or about the closing date of the transaction pursuant to the indentures governing our then remaining unsecured notes, pursuant to which we will offer to repurchase such notes at 100% of the principal amount thereof.

The acquisition, which is expected to close in the second half of 2017, is subject to certain closing conditions including regulatory approval, Refresco shareholder approval, and working capital adjustments.

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Michael Kors Buys Jimmy Choo for $1.35B

Michael Kors to acquire Jimmy Choo PLC for $1.35B

Michael Kors to acquire Jimmy Choo PLC for $1.35B. See Stockwinners.com for stocks to buy, stocks to watch, stocks to follow

Michael Kors (KORS) announced that it has reached an agreement to acquire Jimmy Choo PLC, a global luxury footwear and accessories brand.

Under the terms of the transaction, Jimmy Choo shareholders will receive 230 pence per share, with an enterprise value of approximately $1.35B.

The transaction has been approved by the boards of both Michael Kors and Jimmy Choo.

The transaction is not subject to a financing condition. Michael Kors has committed bridge financing from JPMorgan Chase Bank and Goldman Sachs Bank USA to satisfy the certain funds requirement of the U.K. Takeover Code to complete the transaction.

The transaction is intended to be effected by a U.K. court-approved Scheme of Arrangement and is expected to close in Q4, subject to customary closing conditions, including the receipt of required regulatory approvals as well as the approval of the Scheme by Jimmy Choo shareholders, who together hold at least 75% of the issued share capital of Jimmy Choo and represent a majority of the shareholders voting at the meeting.

Michael Kors has received irrevocable undertakings from JAB Luxury GmbH, Jimmy Choo directors and Sandra Choi, who collectively represent 69.21% of the issued and outstanding Jimmy Choo shares in support of the transaction.

Michael Kors Holdings Limited believes that the acquisition enhances the company’s economic value and will drive improved long-term shareholder value. The acquisition is expected to be accretive on a GAAP basis in fiscal 2020.

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