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Trending - Today's unfounded big pharma merger rumor is ...

Last updated: 14:20 08 Feb 2016 EST, First published: 09:20 08 Feb 2016 EST

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Another day, another rumor of a blockbuster pharmaceuticals merger.

Monday's flyer was a suggestion that Anglo-Swedish drugs leviathan AstraZeneca (LON:AZN) is eyeing Intercept Pharmaceuticals (NASDAQ:ICPT), a frequent participant in the pharma beauty parade.

Somewhat undermining the authority of the merger was a 6% fall in the price of Intercept on Monday morning, to $92.73, but on the other hand broker Wedbush has a price target of $493 for the stock, so some industry professionals clearly think the company is in play.

Intercept is developing obeticholic acid, which is tipped to generate US$2.62bn by 2020.

Another London-listed pharma leviathan, Shire (LON:SHP), was once said to be in the frame as a potential buyer, but it turned its attention to disease specialist Baxalta.

Astra is in danger of being overtaken by Irish upstart Shire in terms of market value and like a lot of drugs companies facing up to the prospect of the so-called patent cliff (where proprietary drugs are no longer protected from generic versions) it has been under pressure in some quarters to make a big acquisition, which at $2.2bn Intercept certainly is.

At Wedbush's valuation of $11.6bn, it probably still would not be out of reach of Astra, which is valued at around $70bn.

Our man Philip Waller in our London office has been in touch with Intercept and is awaiting a reply.

In other merger news, waning internet portal Yahoo! (NASDAQ:YHOO) has effectively put itself up for sale, and naturally people are wondering who might be interested in taking over a company that has struggled since the meteoric rise of tax specialist and advertising behemoth Google (NASDAQ:GOOGL).

In what is starting to look like a school reunion of the dinosaurs of the early days of the internet revolution, Tim Armstrong, chief executive of AOL (NYSE:AOL), has apparently been putting in a word in Yahoo's ear for Verizon Communications (NYSE:VZ).

It's not business news, but it is interesting to note that the Beatles industry brings in more than £80mln to the city of Liverpool.

That little tit-but of information was provided to me by none other than Ian McNabb, now a solo artist but once the leading light of eighties and nineties Liverpool beat combo The Icicle Works (of Whisper to a Scream fame).

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RISERS

Apollo Education Group (NASDAQ:APOL), up 20.1% at $8.35. The education provider has agreed to a $9.50 a share takeover.

Endeavour Silver (NYSE:EKX), up 14.2%, and Alamos Gold (NYSE:AGI), up 7.8%. With the market sinking faster than a lead Zeppelin, investors are seeking sanctuary in precious metals. The price of gold and silver are rising, boosting the price of precious metals miners in the process.

FALLERS

BioCryst (NASDAQ:BCRX) down 67.8%. The primary goals of a study to determine the efficacy of avoralstat in reducing the frequency of angioedema attacks were not met, the company revealed.

CTI Biopharma (NASDAQ:CTIC), down 60%. Another pharma stock taking a heavy fall. The Food and Drug Administration (FDA) has placed a partial clinical hold on the clinical studies being conducted under the Company's Investigational New Drug application for pacritinib.

Chesapeake Energy (NYSE:CHK), down 34.5%. At one point the share price had more than halved as rumours circulated it was planning to restructure its debt. It has since revealed it is not planning to “pursue bankruptcy”, which has seen the share price recover a bit.

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