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Shares in Genmab A/S (GMAB) rose in pre-market trading after announcing a collaboration agreement with AbbVie (ABBV) to jointly develop and commercialize three of its early-stage investigational bispecific antibody product candidates.The stock advanced 5% to $30.32 in Wednesday’s pre-market trading. The two companies said that they will also collaborate on research to develop future differentiated antibody therapeutics for cancer.As part of the partnership they will develop Genmab’s next-generation bispecific antibody programs, epcoritamab (DuoBody-CD3xCD20), DuoHexaBody-CD37 and DuoBody-CD3x5T4.“Epcoritamab is a strong fit for our robust hematological oncology franchise”, said Michael Severino, Vice Chairman and President at AbbVie. “By combining the strengths of our two organizations, we can advance the treatment landscape for patients battling cancer.”Under the financial terms of the collaboration, AbbVie will pay Genmab $750 million in an upfront payment with the potential for Genmab to receive up to $3.15 billion in additional development, regulatory and sales milestone payments for all programs. The financial terms also include tiered royalties of between 22% and 26% on epcoritamab net sales outside the U.S. and Japan.Except for these royalty-bearing sales, the parties will share pre-tax profits from the sale of products on a 50:50 basis. Included in these potential milestones are up to $1.15 billion in payments related to clinical development and commercial success across the three existing bispecific antibody programs.In addition, if all four next-generation antibody product candidates are successfully developed as a result of the research collaboration, then Genmab will get up to $2 billion in option exercise and success-based milestone payments.As a result of the agreement, Genmab is raising its 2020 financial guidance for revenues to be in the range of DKK 9,100 – DKK 9,500 million, an increase of DKK 4,350 million compared to its previous guidance.Genmab shares have been on a steady winning streak since mid-March and are up 29% so far this year. AbbVie was little changed in pre-market trading after advancing 1.7% to $96.17 on Tuesday.SunTrust analyst Asthika Goonewardene this month increased the Genmab’s price target to $36 (25% upside potential) from $30 and maintained a Buy rating, citing the company's pipeline and platform.Goonewardene sees strong potential for epcoritamab as a leading CD20 T-cell engager and noted that the antibody platform "is indeed quite remarkable", with potential to generate a large number of drug candidates and efficiently screen to "find several lead assets per target/mechanism".The rest of the Wall Street analyst community agrees with Goonewardene as the stock scores 5 Buy ratings backing up a Strong Buy consensus. The $31.75 average price target implies shares may advance another 10% over the coming year. (See Genmab stock analysis on TipRanks).Related News: Merck’s Keytruda Fails To Meet Endpoints In Bladder Cancer Trial 5 Promising Covid-19 Vaccines Picked For Trump’s Operation Warp Speed What Would a Merger Mean for Gilead? Top Analyst Weighs In More recent articles from Smarter Analyst: * Pfizer’s Abrocitinib Candidate Shows Positive Results In Kids With Atopic Dermatitis * Ford, Volkswagen Ink Major Joint Project Agreement, Includes New Electric Vehicle * RWE, Thyssenkrupp Plan Hydrogen Production Partnership – Report * Hertz Set To Challenge NYSE Delisting In Upcoming Hearing

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Tesla Inc’s chief executive Elon Musk said that it is time to bring its Semi commercial truck to “volume production”, as the U.S. electric vehicle maker ramps up vehicle production after a brief virus-related shutdown. “Production of the battery and powertrain will take place at Giga Nevada,” Musk said in an email seen by Reuters.

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Shares in Five Below (FIVE) surged 11% in Tuesday’s after-hours trading, despite the specialty value retailer posting a resounding earnings miss.Specifically, Q1 Non-GAAP EPS of -$0.93 fell short of Street expectations by $0.63 while GAAP EPS of -$0.91 also missed by $0.61. Revenue plunged 45% year-over-year to $200.9M, which also came in $29.99M below Street estimates. Comparable sales decreased by 51.8% and net loss was $50.6M vs $25.7M in the first quarter of fiscal 2019.During the quarter, FIVE opened 20 net new stores- bringing its total store count to 920- with roughly 90% of stores now reopened after closing on March 20 due to the Covid-19 pandemic.Joel Anderson, FIVE CEO, stated, “The challenges of the last few months were unprecedented. We temporarily closed stores on March 20… [and] this decision had significant financial ramifications.” However, he did add: “We are very pleased with the initial sales trends we are seeing as stores reopen.”Five Below did not provide sales or earnings guidance for Q2 or fiscal 2020- but it did reveal that it expects to open 100 to 120 net new stores in 2020.“Unsurprisingly, 1Q comps declined (51.8%) as GM/SG&A took a hit from fixed cost deleverage due to the sales impact of store closures” commented RBC Capital’s Scot Ciccarelli post-print.“While re-opened stores are comping +8% QTD, traffic trend questions will likely persist for the near/medium-term and social distancing requirements could pressure the high-volume holiday selling season” he wrote.Nonetheless, the analyst says he remains a ‘buyer’ of FIVE as he took his price target from $102 to $115, citing the stock’s low price point offering and highly compelling economic model.Overall, FIVE shows a cautiously optimistic Moderate Buy consensus with 10 recent buy ratings and 4 hold ratings. The average analyst price target stands in-line with the current share price at $103. Shares are currently trading down 19% year-to-date. (See FIVE stock analysis on TipRanks)Related News: GameStop Down 7% After-Hours As Earnings Fail To Impress Lululemon Earnings Preview: Will LULU Live Up To The Hype? Apple Seeks To Boost Sales Via Mac Trade-Ins, Payment Plans- Report More recent articles from Smarter Analyst: * Coupa Software Seeks To Raise $1.1 Billion From Debt Sale * Global Airlines Are Set To Lose $84.3 Billion In 2020, IATA Says * Merck’s Keytruda Fails To Meet Endpoints In Bladder Cancer Trial * Boeing’s Aircraft Deliveries Drop In May As Cancellations Rise

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Merck (MRK) has announced disappointing results from its Phase 3 Keynote-361 trial evaluating Keytruda, Merck’s anti-PD-1 therapy, in combination with chemotherapy for the first-line treatment of patients with advanced or metastatic bladder cancer.The therapy did not meet its dual primary endpoints of overall survival (OS) or progression-free survival (PFS), compared with standard of care chemotherapy.In the final analysis of the study, there was an improvement in OS and PFS for patients treated with Keytruda in combination with chemotherapy compared to chemotherapy alone; however, these results did not meet statistical significance.Keytruda’s safety profile in the trial was consistent with previously reported studies, and no new safety signals were identified, Merck said. The study had enrolled 1,010 patients.“While we are disappointed in these study results, Keytruda has been established as an important option in the treatment of metastatic bladder cancer, and we are committed to continuing our research to help more patients with this disease” commented Dr. Roy Baynes, CMO of Merck Research Laboratories.Indeed, Keytruda already has three FDA-approved bladder cancer indications across multiple types and stages of bladder cancer. Plus Merck is still evaluating Keytruda as a monotherapy and in combination with other anti-cancer therapies across several disease settings (i.e., metastatic, muscle invasive bladder cancer, and non-muscle invasive bladder cancer).Keytruda is an anti-PD-1 therapy that works by increasing the ability of the body’s immune system to help detect and fight tumor cells. It is a humanized monoclonal antibody that blocks the interaction between PD-1 and its ligands, PD-L1 and PD-L2, thereby activating T lymphocytes which may affect both tumor cells and healthy cells.Shares in Merck are falling 10% on a year-to-date basis, but analysts have a bullish outlook on the stock with a Strong Buy consensus. This is made up of 9 recent buy ratings vs 2 hold ratings. The average analyst price target stands at $92 (12% upside potential). (See Merck stock analysis on TipRanks)Following ASCO 2020, Mizuho Securities’ Mara Goldstein wrote “A key take-away for us on MRK is the likelihood of continued dominance for Keytruda and the opportunity of the company to add to its immuno-oncology arsenal.” She has a buy rating on the stock and $100 price target.Related News: 5 Promising Covid-19 Vaccines Picked For Trump’s Operation Warp Speed What Would a Merger Mean for Gilead? Top Analyst Weighs In Soleno Plunging 48% In Pre-Market On Obesity Study Failure More recent articles from Smarter Analyst: * Coupa Software Seeks To Raise $1.1 Billion From Debt Sale * Global Airlines Are Set To Lose $84.3 Billion In 2020, IATA Says * Five Below Surges 11% After-Hours Despite Earnings Miss * Boeing’s Aircraft Deliveries Drop In May As Cancellations Rise

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(Bloomberg) — Daniel Kretinsky’s bet on Macy’s Inc. turned out to be short but profitable.The Czech billionaire’s Vesa Equity Investment said Tuesday it owned 0.7% of the U.S. department-store chain, down from the 5% stake unveiled less than a month ago. The investment, billed as a strategic move at the time, coincided with a 65% surge in the stock. Kretinsky made roughly $36 million if he bought Macy’s shares the day before disclosing his 5% stake and sold them on Tuesday.Kretinsky’s exit comes as Macy’s starts reopening stores following weeks of lockdown. The company just reported a 45% quarterly sales slump and a net loss of $630 million. Despite the recent rebound, the stock remains down 48% for the year. It was removed from the benchmark S&P 500 Index in March, and Fitch cut the company’s credit rating to junk in April.The Czech investor is known for making contrarian bets, and he’s had a few in the retail sector. Just a week after he disclosed his Macy’s stake, Vesa announced it owned 6% of sneaker seller Foot Locker Inc., another U.S. retailer hard hit by the coronavirus pandemic. Kretinsky also amassed shares of French grocer Casino Guichard-Perrachon SA last year as it reeled from a long fight with short sellers. That move came after a $6.5 billion takeover offer for German wholesaler Metro AG was rebuffed.In the May 11 filing disclosing the 5% investment in Macy’s, Vesa said it may sell or raise its stake depending on market conditions. It also planned to discuss the company’s business, operations, financial conditions and strategic plans with the management, board or other interested parties.Kretinsky’s public relations manager didn’t reply to a text message seeking comment on the investment change.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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Top news and what to watch in the markets on Wednesday, June 10, 2020.

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Boeing Co.’s (BA) aircraft deliveries continued to decline in May, while order cancellations increased as travel restrictions tied to the coronavirus pandemic have throttled commercial jet demand.Last month, the ailing plane maker delivered 4 planes, compared with 6 in April, adding up to a total of 58 in the first five months of this year, as air travel demand has been halted in an effort to contain the coronavirus pandemic. The report comes after France-based planemaker Airbus SE (EADSF) said earlier this week that it did not receive a single order in May.Boeing reported order cancellations of another 18 planes last month, including 14 of its 737 MAX jets. Last year, the U.S. planemaker suspended production of the MAX jets following a second crash. It recently resumed production of the jets at its factory in Renton, Washington, albeit at a low rate.Against this, Boeing did get 9 new orders for wide body planes, which included two 777 freighters, one 737 NG and one 767 freighter.The coronavirus travel restrictions have resulted in a deep cut in the number of commercial jets and services Boeing customers need over the next few years. As such, global airlines suffering billions of dollars in losses have been seeking to cancel or delay some of the orders they have with Boeing. COVID-19 has hit the planemaker very hard, with shares still down 35% since the beginning of the year.The stock dropped 6% to $216.74 on Tuesday. Commenting on the report, five-star analyst Cai Rumohr at Cowen & Co, said that he attributed the “very weak” deliveries in May to COVID-19 shutdowns and flight restrictions. Rumohr reiterated his Hold rating on the stock with a $150 price target.Looking ahead to Q2, Rumohr sees "headwinds of sharply lower commercial delivery/service sales than in Q1, continuing abnormal production/severance expense, and possible further MAX compensation reserves". The analyst estimates that Q2 cash outflow could hit $9 billion with a resumption of a dividend unlikely until 2024.Wall Street analysts are cautiously optimistic on the stock. Nine Buys, 11 Holds, and 1 Sell rating give Boeing a Moderate Buy analyst consensus, with the $177.89 average analyst price target reflecting 18% downside potential in the shares over the coming year. (See Boeing stock analysis on TipRanks).Related News: Airbus Gets No New Aircraft Orders In May Amid Aviation Crisis Boeing CEO Says ‘Likely’ A Major Airline Could Fold In 2020 Colombian Carrier Avianca Files for Bankruptcy Protection Due to Coronavirus Woes More recent articles from Smarter Analyst: * Merck’s Keytruda Fails To Meet Endpoints In Bladder Cancer Trial * Five Below Surges 11% After-Hours Despite Earnings Miss * Chewy Posts Strong Beat & Raise Quarter As Growth Accelerates * Denali Drops 7% In After-Market On Halt Of DNL747 Drug Study

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