Can CVS Health Buy BioPharmX Corporation? - CWEB.com




Can CVS Health Buy BioPharmX Corporation? - CWEB.com
  • Corporate health-care deal value surged 37 percent last year, according to a new report from consulting firm Bain & Company.
  • The number of health-care mergers and acquisitions rose 16 percent.
  • CVS Health's planned acquisition of health insurer Aetna was the largest corporate deal of 2017 at $69 billion.
The health-care shopping spree isn't likely to stop anytime soon. Corporate deal value surged to $332 billion last year, up 27 percent from $261 billion in 2016, though still below the peak of $432 billion in 2015, according to a new report from consulting firm Bain & Company. What does make BioPharmX unique?
  1. Financial Health: Does it have a healthy balance sheet?
  2. Management:Have insiders been ramping up their shares to take advantage of the market’s sentiment for BPMX’s future outlook?
  3. Other High-Growth Alternatives: BPMX is a high-growth stock you could be holding?
Walgreens  was also reportedly considering acquiring the part of drug distributor AmerisourceBergen that it doesn't already own earlier this year, though talks have cooled. Walmart and health insurer Humana are having early-stage talks about strengthening their existing partnership, people familiar with the matter told CNBC. BioPharmX Corporation (BPMX) products are sold in CVS Health Pharmacy (NYSE:CVS), Walgreens, Drugstore.com, GNC (NYSE:GNC), The Vitamin Shoppe, Harris Teeter and many more. BioPharmX added 3,025 GNC store locations supplying Violet® iodine, raising its U.S. retail footprint to more than 7,500 stores. Availability of Violet iodine at GNC is expected to begin in mid-December. GNC is a leading global specialty retailer of health and wellness products and is devoted to helping its customers improve the quality of their lives. We believe the addition of GNC stores will accelerate VI2OLET revenue growth in the coming quarters. Institutional investors currently hold major shares in BioPharmX Corporation(BPMX) stock. Majority of the recent share have been purchased by Vanguard Investment firm on 5-13-2018
Owner Name Date Shared Held Change (Shares) Change (%) Value (in 1,000s)
VIVO CAPITAL, LLC 05/13/2018 16,128,515 2,328,571 16.87 3,306
FRANKLIN RESOURCES INC 05/13/2018 9,749,615 0 0.00 1,999
VANGUARD GROUP INC 05/13/2018 5,498,918 3,541,971 181.00 1,127
GEODE CAPITAL MANAGEMENT, LLC 03/31/2018 671,686 347,719 107.33 138
VIRTU FINANCIAL LLC 03/31/2018 426,837 426,837 New 88
BARCLAYS PLC 03/31/2018 362,900 362,900 New 74
SUSQUEHANNA INTERNATIONAL GROUP, LLP 03/31/2018 181,335 181,335 New 37
CITADEL ADVISORS LLC 03/31/2018 146,859 146,859 New 30
MCF ADVISORS LLC 03/31/2018 105,629 105,629 New 22
JANE STREET GROUP, LLC 03/31/2018 96,941 96,941 New 20
TWO SIGMA SECURITIES, LLC 03/31/2018 93,390 47,105 101.77 19
NORTHERN TRUST CORP 03/31/2018 92,518 0 0.00 19
UBS GROUP AG 03/31/2018 70,367 36,614 108.48 14
LADENBURG THALMANN FINANCIAL SERVICES INC. 03/31/2018 64,200 0 0.00 13
CREDIT SUISSE AG/ 03/31/2018 50,000 50,000 New 10
HOLDERS SHARES
Increased Positions 17 7,708,826
Held Positions 7 15,447,095
Total Institutional Shares 27 33,878,519
 

Strong Institutional Ownership

Institutions own approximately 19.42% of BioPharmX’ shares. Among active positions in the latest quarter, 7 holders increased their positions by a total of 10.8 million shares. This means there is a net increase in ownership of 9.61 million shares, which may suggest that institutions feel bullish about the stock.

Current Cash as of March 9, 2018

  • Pro-forma cash of $14.2 million
    • $7.6 million as of January 31, 2018
    • $6.6 million in proceeds from warrant exercises after the end of the quarter

Expired Reverse Split

Another super bullish fact is that the company let an already approved reverse split expire. I asked the company about this and their response was:
“Regarding the expired reverse stock split, the company and its shareholders did not feel such an action would be in the best interest of the shareholders once the company was able to bring the company back into compliance with the NYSE American’s continued listing standards. The company is optimistic that it will be in compliance for continued listing standards regarding its share price by the June deadline.”
Source: Mail from BiopharmX, Investor Relations Institutional ownership trends suggest that the stock is cheap and the insider trading data indicates that insiders are bullish. Technical indicators also suggest that BioPharmX Corporation (BPMX) , is undervalued.  A potential Buy is very possible for BioPharmX Corporation by a major Drug chain like CVS or Walgreens Pharmacy. CWEB Analysts have Reiterate a Buy Rating for BioPharmX Corporation (BPMX)  and a Price Target of $7 within 12 months.


 [youtube https://www.youtube.com/watch?v=9TXBP1t2rUc&w=560&h=315]

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