Category: European Stocks

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What Caused Stocks to Fall on Thursday?

Legendary investor Howard Marks cautions investors in latest memo

Howard Marks cautions investors in latest memo. See Stockwinners.com for stocks to watch,stocks to trade,stocks to buy

Howard Marks, co-chairman of Oaktree Capital (OAK), penned a memo out on Wednesday urging investors to proceed with caution.

Marks notes that the end of the current bull market may not come today or soon but that risks are elevated and investors may be ignoring them.

“My observations are always indicative, not predictive … an eventual increase in risk aversion – should happen, but they don’t have to happen. And they certainly don’t have to happen soon,” said Marks.

Marks contends the point that bull markets seem to focus on a few stocks as “the greatest.”

He mentions the FAANG’s as the current bull market’s “anointed stocks.” The acronym FAANG is used to describe the current “super stocks”: Facebook (FB), Amazon (AMZN), Apple (AAPL), Netflix (NFLX) and Google (GOOG). In his 22 page memo, Marks says, “I’m not saying the FAANGs aren’t great, or that they’ll suffer such a fate. Just that their elevated status today is a sign of the kind of investor optimism for which we must be on the lookout.”

Marks also turns his sights on digital currencies. “Some businesses accept Bitcoin as payment. Some buyers want to own Ether because it can be used to pay for computing power on the Ethereum network. Some people are eager to speculate on digital currency for profit. Others want to put a little money into these to-date-profitable phenomena rather than run the risk of missing out. But they’re not real!,” Marks explained.

Mark’s ends his discussion by pointing out that the four components of today’s market, “high uncertainty, low prospective returns, high prices and pro-risk behavior – are indisputable.”

Because of this #Marks says this may be a good time to curtail investments, however he points out that large institutional investors do not have the option to stop investing, especially “especially true when the return on cash is as low as it is today.”

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KKR, CVC Capital to bid for Azko Nobel unit 

KKR, CVC Capital work on joint bid for Azko Nobel unit 

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Private equity firms KKR (KKR) and CVC Capital Partners have started to work on a joint bid for the specialty chemicals business of Akzo Nobel (AKZOY) specialty chemicals division, Bloomberg reports, citing people familiar with the situation.

Advent International and Apollo Global Management (APO) are also mulling offers for the unit, which may be valued at over EUR9B or $10.6B.

Akzo Nobel has said it plans to dispose of the unit, part of its defense against PPG Industries Inc.’s unsuccessful 26.9 billion euro takeover bid, and will solicit offers in September.

The sale process is at an early stage and no final decisions have been made, the people said.

Representatives for CVC, KKR, Advent, Apollo, Akzo Nobel declined to comment reports Bloomberg.

TURBULENT TIMES

The company has had a turbulent few months following the PPG offer, which was withdrawn in June.

Chief Executive Officer Ton #Buechner resigned last week for health reasons. That leaves new CEO Thierry #Vanlancker, who joined the company last year, to carry out the ambitious targets Akzo Nobel put forth as its defense against being sold.

Activist investor #Elliott Management Corp., which holds a stake in Akzo Nobel, is attempting to oust the company’s chairman.

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ShoreTel Sold for $530 Million

Mitel announces agreement to acquire ShoreTel for $7.50 per share in cash

 

Mitel announces agreement to acquire ShoreTel for $7.50 per share in cash. See Stockwinners.com for stocks to watch, stocks to buy, stocks to trade

Mitel (MITL) and ShoreTel (SHOR) announced that they have entered into a definitive merger agreement pursuant to which Mitel will acquire 100% of the outstanding shares of ShoreTel common stock in an all-cash transaction at a price of $7.50 per share, or a total equity value of approximately $530 million and a total enterprise value of approximately $430 million.

ShoreTel, Inc. provides business communication solutions for small and medium sized businesses. The company offers integrated voice, video, data, and mobile applications based on Internet protocol technologies. It offers various solutions, such as ShoreTel Voice Switches; ShoreTel Service Appliances for messaging, conferencing, and collaboration applications

The purchase price represents a 28% premium to ShoreTel’s closing share price on July 26, 2017.

The combined company will be headquartered in Ottawa, Canada, and will operate as Mitel. Rich McBee, Mitel’s Chief Executive Officer, will lead the combined organization. Steve Spooner, Mitel’s Chief Financial Officer, will also continue in that role.

Financial highlights of the transaction include: Combined sales of $1.3 billion; Increases Mitel’s total recurring revenue to 39% of total revenue; More than doubles Mitel’s UCaaS revenue to $263 million; Significant synergy opportunity targeted at $60M in annual run rate spend expected to be achieved over two years; Expected to be accretive to non-GAAP EPS in the first year.

Mitel intends to finance the consideration for the acquisition and associated transaction expenses using a combination of cash on hand from the combined business, drawings on its existing revolving credit facility and proceeds from a new fully underwritten $300 million term loan maturing in 2023.

The transaction is expected to be completed in the third quarter of 2017, subject to ShoreTel stockholders having tendered shares representing more than 50% of the outstanding shares of ShoreTel common stock, certain regulatory approvals having been obtained and other customary conditions to the tender offer having been satisfied.

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AstraZeneca receives $8.5 Billion from Merck

AstraZeneca receives $1.6B upfront in oncology collaboration with Merck

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AstraZeneca (AZN) and Merck (MRK) announced that they have entered a global strategic oncology collaboration to co-develop and co-commercialise AstraZeneca’s Lynparza for multiple cancer types.

#Lynparza is an oral poly ADP ribose polymerase, or PARP, inhibitor currently approved for BRCA-mutated #ovarian cancer in multiple lines of treatment.

The companies will develop and commercialize Lynparza jointly, both as monotherapy and in combination with other potential medicines.

Independently, the companies will develop and commercialise Lynparza in combination with their respective PD-L1 and PD-1 medicines, Imfinzi and Keytruda.

The companies will also jointly develop and commercialize AstraZeneca’s selumetinib, an oral, potent, selective inhibitor of MEK, part of the mitogen-activated protein kinase pathway, currently being developed for multiple indications including thyroid cancer. Under the terms of the agreement, AstraZeneca and Merck will share the development and commercialization costs for Lynparza and selumetinib monotherapy and non-PD-L1/PD-1 combination therapy opportunities.

Gross profits from Lynparza and selumetinib Product Sales generated through monotherapies or combination therapies will be shared equally.

Merck will fund all development and commercialization costs of Keytruda in combination with Lynparza or selumetinib. AstraZeneca will fund all development and commercialization costs of #Imfinzi in combination with Lynparza or selumetinib. AstraZeneca will continue to manufacture Lynparza and selumetinib.

As part of the agreement, Merck will pay AstraZeneca up to $8.5B in total consideration, including $1.6B upfront, $750M for certain license options and up to $6.15B contingent upon successful achievement of future regulatory and sales milestones.

Under the terms of the agreement, AstraZeneca anticipates approximately $1B to be recorded under Externalization Revenue in 2017.

OTHER EVENTS

AstraZeneca plunged in pre-market trading as Phase III MYSTIC trial endpoint not met. AstraZeneca announced progression-free survival results for the Phase III #MYSTIC trial, a randomized, open-label, multi-center, global trial of Imfinzi monotherapy or Imfinzi in combination with tremelimumab versus platinum-based standard-of-care chemotherapy in previously-untreated patients with metastatic 1st-line non-small cell lung cancer.

MYSTIC TRIAL:

AstraZeneca has announced progression-free survival, or PFS, results for the Phase III MYSTIC trial, which is testing Imfinzi monotherapy or Imfinzi in combination with tremelimumab versus platinum-based standard-of-care chemotherapy in previously-untreated patients with metastatic first line non-small cell lung cancer.

The combination did not meet the primary endpoint of improving PFS compared to standard-of-care in patients whose tumors express PD-L1 on 25% or more of their cancer cells.

PRICE ACTION

In Thursday’s trading, shares of AstraZeneca have dropped over 15% to $28.72, while Bristol’s (BMY) stock has slipped almost 5% to $53.23. MYSTIC trial failure is a negative read-through for Bristol-Myers’ combo of Opdivo + Yervoy in the ongoing CheckMate-227 trial.

Meanwhile, Merck is up over 3% to $63.75.

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Facebook Ahead of Earnings!

Facebook in strong uptrend before the earnings report on Wednesday.

stockwinners.com analysis of facebook stock

The stock has been in a stable uptrend since breaking out in July 2013.

In April of this year, the shares broke out above the top of the bullish price channel that had been in place since July 2013.

The uptrend has accelerated in recent weeks moving price even further from the prior channel top.

The current point of intersection with the old channel top is at the $150 area. If the news is strongly positive, exceeding even the most current expectations, the breakout may extend.

The very top of the current price channel when projected forward in the near-term reaches the $168 area. Beyond that, a move to the $170-$175 area might be possible.

If the news doesn’t meet expectations, given the sentiment in the name a pullback could be quite large.

Initial support would be at the $156.50 area, which is the top of the consolidation range from May to early July of this year. Thereafter the $150 area would be next.

A move below $150 might seem like an extreme move, but would still leave price within the long-term channel. The low of the old long-term channel is at the $135-$134 area.

The consensus estimate on Facebook for Q2 revenue is to reach $9.17 billion. The consensus on adjusted earnings is $1.12 a share. Revenue from advertising is expected to come at $8.78 billion.

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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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India Approves Anika Therapeutics’ Treatment for Osteoarthritis Pain

Anika Therapeutics says Monovisc approved in India

Anika Therapeutics says Monovisc approved in India. See Stockwinners.com Market Radar for Stock Upgrades, stock downgrades, stock earnings, stocks to watch

Anika Therapeutics (ANIK) announced that regulatory authorities in India granted approval to MONOVISC, its single injection viscosupplement for the treatment of pain associated with osteoarthritis of all human synovial joints.

#MONOVISC is commercially available in the United States, Canada and Europe, and Anika plans to expand into India, Australia, New Zealand and additional international markets over the next six to nine months.

“Expanding our global commercial footprint is one of our key strategic pillars of growth, and the approval of MONOVISC in India is a proof point for our ability to execute against the benchmarks we define each year,” said Charles H. Sherwood, Ph.D., President and Chief Executive Officer of Anika Therapeutics.

“There is a growing demand for non-invasive, long-acting treatments for osteoarthritis in emerging countries such as India where knee replacement surgery is often the last option or not an option at all, due to limited medical resources outside major cities and high costs of surgery and postsurgical care.

With its ability to safely relieve pain for up to six months with fewer office visits, lower treatment costs and no downtime after treatment, MONOVISC is poised to be well-received by physicians and patients in India.”

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Hibbett Sports Brings the Sector Down!

Foot Locker, Under Armour slide following Hibbett Sports profit warning

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Shares of Foot Locker (FL) and Under Armour (UA) are sliding after Hibbett Sports (HIBB) provided negative preliminary results for the second quarter.

Commenting on the news, Raymond James analyst Dan #Wewer added that the read through is negative not only for Hibbett’s vendors but also appears negative for Dick’s Sporting Goods (DKS).

PRELIMINARY RESULTS

Hibbett Sports has provided preliminary results for the second quarter ended July 29, stating that based on “very challenging sales trends,” comparable store sales are expected to decrease approximately 10% for the second quarter.

The company, which also and announced the launch of its new e-commerce site this morning, added that the decline in sales, along with significant pressure on gross margin, is expected to result in a loss of (19c) to (22c) per diluted share for the quarter.

NEGATIVE READ-THROUGH

In a research note to investors, Raymond James’ Wewer noted that Hibbett’s same-store sales warning follows Finish Line’s (FINL) first quarter release on June 23 that May sales suffered from weak consumer traffic and difficult product launch comparisons. The read through is negative for Hibbett’s vendors, including Under Armour (UAA), said Wewer.

While the analyst acknowledged that he is not sure if Hibbett’s sales trends were company specific or reflective of the industry, he said the preannouncement also appears negative for Dick’s.

Meanwhile, Stifel analyst Jim #Duffy told investors in a research note of his own that Hibbett’s release is symptomatic of difficult retail trends in North America. While the analyst noted he sees negative comparable sales as a structural challenge to the retail business, he does expect poor second quarter performance to set up for an easy compare in the second quarter of 2018.

Nonetheless, Duffy pointed out that the e-commerce launch timing is welcome ahead of back-to-school, providing a revenue benefit at lower operating margins near-term. He reiterated a Hold rating on Hibbett’s shares.

Voicing a similar opinion, his peer at #SunTrust noted that Hibbett’s profit warning was just the latest data point showing a lack of sector vitality right now.

Fashion shifts, macro sluggishness and e-commerce shifts are all playing a role, analyst David #Magee contended.

Furthermore, the analyst pointed out that he does not think the sector weakness is confined to the company in what is usually a seasonally challenging period. Magee also reiterated a Hold rating on Hibbett.

PRICE ACTION

In Monday afternoon trading, shares of Hibbett have dropped about 31% to $13.52, while Foot Locker and Under Armour have slipped about 4% and 2%, respectively. Dicks Sporting Goods has also slid almost 6% to $35 per share.

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Goldman Sachs Shares Continue to Decline due to Weak FICC Revenue

Goldman Sachs gets second downgrade after earnings

Goldman get second downgrade following earnings. See Stockwinners.com Market Radar

Shares of Goldman Sachs (GS) are sliding after UBS analyst Brennan #Hawken downgraded the stock to Neutral as he has “limited confidence” in a revenue recovery.

Last week, his peer at Keefe Bruyette also cut the stock’s rating to Market Perform, citing his view of its weakening revenue outlook following the investment bank’s second quarter results.

MOVING TO THE SIDELINES

In a research note to investors this morning, UBS’ Hawken downgraded Goldman Sachs to Neutral from Buy and cut his price target on the shares to $230 from $255 as the market seems to be pricing an inflection in their FICC revenues despite the recent weakness, suggesting a recovery is needed to justify 2018 consensus.

#FICC – the group within an investment bank that handles fixed income instruments, currencies, and commodities.

While the analyst recognized recent weak results could rebound, he believes a recovery in trading revenues would need to be substantial as he estimates a roughly 25% rebound in FICC revenues is implied in 2018 consensus estimates.

Further, trading could rebound but that has not happened over the past year for Goldman Sachs absent a surprise event such as #Brexit or the Trump election, Hawken argued, adding that he has difficulty relying on such an event to justify a bullish thesis.

The analyst told investors there are “better opportunities,” such as Morgan Stanley (MS).

On July 19, Keefe Bruyette analyst Brian #Kleinhanzl had also downgraded Goldman Sachs to Market Perform from Outperform, while lowering his price target on the shares to $230 from $260.

The analyst told investors in a research note of his own that he does not expect his previous Outperform thesis for a materially better revenue outlook to emerge near-term, partially due to market activity and partially due to weak performance by the company. Kleinhanzl pointed out that Goldman Sachs has become a “show-me stock,” and it would need to consistently outperform in FICC trading for more than one quarter in order for the analyst to become more constructive.

EARNINGS 

Last week, Goldman Sachs reported second quarter earnings per share of $3.95 and revenue of $7.89B, both above consensus of $3.39 and $7.52B. The company also said that net revenues in Fixed Income, Currency and Commodities Client Execution were $1.16B for the second quarter, 40% lower than the second quarter of 2016, due to significantly lower net revenues in interest rate products, commodities, credit products and currencies, partially offset by higher net revenues in mortgages.

PRICE ACTION

In Monday’s trading, shares of Goldman Sachs dropped 0.5% to $219 per share. Since the morning of its earnings report on July 18, Goldman shares have slid over 4%.

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Barron’s is Bullish on Leucadia, Sarepta and Flex, Bearish on Fiberoptic Makers, Retail

Barron’s, the weekly publication owned by the Wall Street Journal, in its latest issue is bullish on several names. They include:

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Flex could rise 25% in a year – Flex (FLEX) is using robotics, machine learning, three-dimensional printing, and other next-generation technologies to transform itself into an everything factory, able to turn out not just consumer electronics but also medical equipment, sneakers, and car components, Jack Hough writes in this week’s edition of Barron’s. While the company’s business mix is changing, it still has ample exposure to PCs and smartphones, as well as companies like Apple (AAPL) and Lenovo (LNVGY), the report noted, adding that it expects Flex’s stock to rise another 25% or more over the coming year.

Leucadia shareholders to ‘finally’ see reward – Five years after Leucadia National (LUK) announced its merger with Jefferies Group, the combined company, and its shares, seem poised to prosper, Leslie Norton writes in this week’s edition of Barron’s. Despite an initial burst from $21 to $31 in the year following the deal, the shares succumbed shortly thereafter to the drop-in oil prices and oil-related junk bonds, which hurt Jefferies’ commodities and bond units, the publication noted, adding that both businesses have since revived, with some investors believing its shares could be worth $30 or more.

Aviation, defense stocks have ‘juicy yields – Some aerospace and defense stocks sport “nice yields,” not to mention impressive total returns in recent years, and “good opportunities” exist in companies that overlap like Boeing (BA), Lawrence Strauss writes in this week’s edition of Barron’s. Alongside Boeing, the report highlighted the yields of Lockheed Martin (LMT), United Technologies (UTX), Raytheon (RTN), L3 Technologies (LLL), General Dynamics (GD), Northrop Grumman (NOC) and Rockwell Collins (COL).

Upbeat sales news, guidance boost lift Sarepta shares – Sarepta’s (SPRT) shares surged last week after the company reported stronger than expected U.S. sales of its drug for Duchenne muscular dystrophy, or DMD, in the second quarter, while raising sales guidance for the year, Andrew Bary writes in this week’s edition of Barron’s. There could be more upside in the shares because of the significant sales potential for its DMD drug, Exondys 51, the report noted, adding that Sarepta looks like one of the “most promising smaller biotech companies.”

BEARISH NAMES

Amazon, others could be threat to fiberoptic markers – Amazon.com (AMZN), Alphabet (GOOGL;GOOG), Microsoft (MSFT), Apple (AAPL), and Facebook (FB) have all become the biggest and most important buyers of tech gear, with their influence changing the way fiberoptic components are being manufactured and distributed, Tiernan Ray writes in this week’s edition of Barron’s. The pace is so intense, and supplies have gotten so tight, that Amazon is bypassing traditional vendors and manufacturing the parts itself, the report note, adding that this could threaten companies like Applied Optoelectrics (AAOI), Lumentum (LITE) and Oclaro (OCLR) if other big techs follow. See Stockwinners’ blog about fiberoptic names.

Nothing is ‘Amazon-proof’  – Amazon’s (AMZN) deal with Sears (SHLD) to sell Kenmore appliances caused shares of Home Depot (HD), Lowe’s (LOW) and Best Buy (BBY) to tumble, Ben Levisohn writes in this week’s edition of Barron’s. Brick-and-mortar retailers like Macy’s (M) and Kohl’s (KSS) were the first victims of the rise of online shopping, while this year retailers once thought immune to the impact like O’Reilly Automotive (ORLY) and Advance Auto Parts (AAP) followed suit, the report noted, adding that when Amazon agreed to buy Whole Foods Market (WFM), it also caused shares of Kroger (KR) and Costco (COST) to sell off. “Nothing is Amazon-proof,” Levisohn argued.

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Humira Approved for Pediatric Patients with AU

AbbVie receives CHMP positive opinion for Humira for pediatric patients with AU

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AbbVie (ABBV) said that the European Committee for Medicinal Products for Human Use of the European Medicines Agency has granted a positive opinion for #HUMIRA for the treatment of chronic non-infectious anterior uveitis in pediatric patients from two years of age who have had an inadequate response to or are intolerant to conventional therapy, or in whom conventional therapy is inappropriate.

The #CHMP opinion is based on results from the SYCAMORE clinical trial, a randomized controlled study of the clinical effectiveness and safety of HUMIRA combined with methotrexate versus methotrexate plus placebo for the treatment of active JIA-associated uveitis.

It was sponsored by the University Hospitals Bristol NHS Foundation Trust and coordinated by the Clinical Trials Research Centre at the University of Liverpool.

The Independent Data Safety and Monitoring Committee recommended unmasking the trial early after 90 randomized patients with active JIA-associated uveitis showed that HUMIRA combined with methotrexate controlled ocular inflammation better and was associated with a significantly lower rate of treatment failure than placebo.

The review of the marketing authorization application is being conducted under the centralized licensing procedure.

A marketing authorization decision is anticipated by September.

If approved, the authorization will be valid in all 28 member states of the European Union, as well as Iceland, Liechtenstein and Norway.

HUMIRA was approved by the European Medicines Agency for the treatment of non-infectious intermediate, posterior and panuveitis in adults in June 2016.

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European Central Bank Keeps Rates Unchanged

ECB leaves key interest rates unchanged

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The Governing Council of the ECB decided that the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0.00%, 0.25% and -0.40% respectively.

The Governing Council expects the key ECB interest rates to remain at their present levels for an extended period of time, and well past the horizon of the net asset purchases.

Regarding non-standard monetary policy measures, the Governing Council confirms that the net asset purchases, at the current monthly pace of EUR 60B, are intended to run until the end of December 2017, or beyond, if necessary, and in any case until the Governing Council sees a sustained adjustment in the path of inflation consistent with its inflation aim.

The net purchases are made alongside reinvestments of the principal payments from maturing securities purchased under the asset purchase program.

If the outlook becomes less favorable, or if financial conditions become inconsistent with further progress towards a sustained adjustment in the path of inflation, the Governing Council stands ready to increase the program in terms of size and/or duration.

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The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility.

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