Horizon Pharma drops; Clovis in focus; Anacor, Depomed slip; Chesapeake extends gains

By Rebecca Melvin

New York, April 12 – Horizon Pharma plc’s convertibles fell along with the underlying shares on Tuesday after the Ireland-based pharmaceutical company lowered guidance for its first- and second-quarter sales and earnings forecasts, although full-year sales and earnings guidance was confirmed.

Traders were also watching Clovis Oncology Inc.’s convertibles, but neither the bonds nor the shares were traded for the majority of the session as shares were halted pending news. The Boulder, Colo.-based biotechnology company was meeting with a panel of federal regulators Tuesday morning to discuss its New Drug Application for rociletinib.

That FDA panel voted against approving Clovis’ lung-cancer drug given current data. But the shares, which initially dropped 18% upon opening after 2 p.m. ET, ended down only 5%, or 82 cents, to $14.24 at the end of the session.

The Clovis 2.5% convertibles due 2021, which had spent the majority of the session untraded, dropped only 2.5 points to 61 from 63.62, according to Trace data.

Anacor Pharmaceuticals Inc.’s 2% bonds were down nearly 6 points on an outright basis to 112.8, according to Trace data. Those bonds, which priced less than two weeks ago, had traded up to more than 120 last week.

Depomed Inc.’s 2.5% convertibles, which also gained last week, fell 4.3 points to 103.

Chesapeake Energy Corp.’s convertibles extended gains along with the underlying shares after the Oklahoma City-based natural gas company announced on Monday that it has amended its $4 billion revolving credit facility agreement.

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