BioMarin As gain on swap, BioMarin Bs in line amid takeout rumors; health care better bid

By Rebecca Melvin

New York, March 27 – BioMarin Pharmaceutical Inc.’s convertibles traded actively and surged on an outright basis on Friday, while on a hedged basis, the BioMarin As were better and the Bs were flat, amid takeout speculation that lifted the underlying shares 11.5%, according to market sources.

Other health care and biotech convertibles were boosted by the BioMarin moves.

“It’s been a pretty crazy week in biotech. It was weak, but it’s bouncing back today with deeper, in-the-money names more of the focus,” a New York-based trader said.

That said, Jazz Pharmaceuticals Inc. was better by about 0.5 point on the day, ending the day at 117.25 versus an underlying share price of $175.42; and Isis Pharmaceuticals Inc.’s convertibles improved by 0.25 point to 0.5 point on swap, ending the day at 115.75 versus an underlying share price of $63.37, according to a New York-based trader. Isis shares were up 3.6%.

Otherwise, the session was very slow, traders said. Yahoo! Inc.’s 0% convertibles due 2018 were trading a bit better after the Sunnyvale, Calif.-based internet company authorized an additional $2 billion in share buybacks through March 2018.

There was no follow through to speak of in SanDisk Corp., which was the name of the day in the convertibles market on Thursday. On Friday, the SanDisk 0.5% convertible was seen about 0.5 point lower on an outright basis at 100.7, with shares down another 3%.

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