Aegerion adds on swap with higher shares; Titan Machinery slips on swap on lower shares

By Rebecca Melvin

New York, Aug. 27 – Aegerion Pharmaceuticals Inc.’s 2% convertibles, which priced earlier this month, rose on an outright basis and improved on a dollar-neutral, or hedged, basis on Wednesday as shares of the Cambridge, Mass.-based biopharmaceutical company rose 5%, a New York-based trader said.

Also among biotech names, Cubist Pharmaceuticals Inc. was still seeing strong outright interest with the Cubist 1.875% convertibles due 2020, or the B tranche, ending the session wrapped around 113.

“The health care, biotech space is one of the few places that is outperforming,” a trader said.

This week the biotech space was boosted by investors recycling money out of InterMune Inc. on the heels of a 50-point run in that company’s 2.5% convertibles on Monday. The run was caused by news that Swiss pharmaceutical giant Roche AG has offered to buy the California-based biotechnology firm.

Elsewhere, Titan Machinery Inc.’s 3.75% convertibles due 2019 traded little unchanged on an outright basis but were seen 0.125 point lower on swap on a 35% delta with the shares down nearly 7%.

“That was pretty much the market delta,” a trader said of the 35% figure.

Shares of Titan, a West Fargo, N.D.-based agriculture and construction equipment company, fell 92 cents to $12.53.

The Titan convertibles were quoted at 79 to 80 at the end of the day.

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