meg terrell joins us, meg? >> this is a big new class of cholesterol drugs for patients that don't get far enough on st statins and lipitor and amgen is close. people expect approval of the drug by thursday of next week. so because approval is priced in, rbc is putting maybe a three to 5% move on the decision but what people are going to watch, is how broadly that drug is approved and whether that matches the approval or if it's narrower and where they price the drug. it can be taken by millions of patients. analysts for peak sales at $5 billion. so what people are watching is for amgen comes out on party or price at a discount to try to get people to prescribe it because it's cheaper? >> the estimates are both $5 billion. does that assume, what does that assume with both existing in the markets, they will both hit $5 billion? >> that's what people expect. they say in a few years at peak annual sells they can reach $5 billion. right now folks haven't seemed to have called a winner. they are basically splitting

meg terrell joins us now. >> we like these sell-offs. there's been such a run-up in this space, will we see people coming out? >> it's possible. people have been hunting so much at those higher prices. it's hard to think lower prices wouldn't increase their appetite. you look at valeant stock. it's down 6% today. when acquirers were getting punished for buying, valeant was getting rewarded. why would sprout sell after they get the approval? >> it's hard to say no to $1 billion. there are questions how widely used this drug will be. folks worry about safety concerns. it should be on the shelves later this year. there will be a lot of restrictions how it's prescribed. >> the bigger picture. is this a special situation or will we see more down the road? >> will be more biotech deals. there are a few situations going on right now. these deals will continue. you hear about pfizer and allergan. will we see big combinations? folks are talking about that. as biotech comes down, people are looking at bigger bargains. >> if the market is selling o

meg terrell getting off the phone with a spokesperson for abbott an not pursuing a deal for st. a little bit. >> in the ft report, no guarantee. >> they said they were preparing a bid. the spokesperson saying on the record they're not preparing a bid. >> not -- not even preparing one? >> there is no offer. meg, meg's on the sidelines right here. yeah. she doesn't have an mic on her. >> not preparing a bid. >> specifically on the record saying they're not preparing a bid. >> oh well. >> shooting down that story. >> in the ft. >> shooting down that story in the ft. of course, you know, it remains to be seen whether they can come back and make a bid later. traditionally something you don't do. if you're contemplating a bid for a spokesperson to come out on the record and say we're not preparing a bid, a, unusual, b, makes it very difficult to later change your mind. but of course, crazier things have happened before. >> keep reading. >> i'm supposed to keep reading? >> i don't know. me? >> you, sir. >> i'm sorry. >> i'm happy to keep reading. meg will join us. >> this is like strai

that could come within any minute. >> meg terrell joins us with more. what's it mean?> that's right. amgen's approval from the fda is widely expected for this cholesterol drug repathia. a similar class drug got approved last month. they are intended for folk whose don't get far enough lowering their levels of bad cholesterol ldl taking statins. regeneron estimated that is a market in the united states of about 8 to 10 million patients. these drugs can bring in each $5 billion in peak annual sales a few years out when they reach their peak total market share. some of the questions because approval is priced in are how broad will amgen's approval be? will it be for the same population? how much will they price that drug? where will amgen shake out on that? >> we'll be watching for it. thank you so much. 15 minutes to go into the close. this market moved around so much in the last hour. first we gave up a lot of the gains. now coming back. the index is broughtly speaking up 1.92%. dow up 308. >>> up next -- this is hugely volatile. up next, find out why luke capital's ana

meg terrell is here with details.he stock is down 1% in the after hours we should note. >> amgen getting approval which was widely expected. what was important is whether the label will be approved was the same as the competitor drug from others. from reading the label from the fda, it looks similar, same class of patients and the one extra piece of information, which i haven't gotten which is why i'm holding my phone is where it will be priced. reagain ron is $14,600 a year. >> this is huge. city put the estimate at $11 billion eventually. >> potentially huge market, eight to 10 million americans could fall under the label it got from the fda so a lot of folks taking these drugs. each drug is at $5 billion at peak annual sales. >> we'll keep our eyes out for the pricing. in the meantime, meg, a super bug drug, sounds fascinating. >> or scary. >> or scary. >> hopefully it will take care of what is scary. it's about $1.5 billion. super bugs are bacteria that have become resistant to antibiotics. the cdc says they kill

meg terrell is here with the latest. we are expecting to hear today, is that right?s afternoon we could hear whether the fda will reject or approve this drug. the drug had been rejected twice before. now it seems maybe the tides could be turning. we contact call this the female viagra. it doesn't work the same way viagra does. it works in the brain. this is made by a private company called sprout pharmaceuticals. it had problems because of balance of safety and efficacy. low blood pressure and fainting which can be exacerbated if people are drinking alcohol while taking this drug which is taken chronically. if it is approved, it will probably have strict post marketing requirements. >> did they change their mind? what was it after the first two rejections seems to be giving this serious consideration to be on the market before we know it? >> gender equality. >>> that's one of the things. they had to run more studies. there has been an intense lobbying effort claiming gender bias at the fda. folks take issue with this, including the fda, of course. it's interesting sc

. >> thanks, meg terrell our biotech reporter. >> queer trying to squeeze in street talk here.ts upgrading from buy to hold. they think general parts is integrated nicely. about a 17% total return. >> since its april low up massively. credit suisse throwing cold water after the second quarter earnings came in inline saying the stock's reaction was overdone. some skeptics on the street. sandisk, bank of america downgrading to underperform from buy. target got cut from $40 to $75 cutting the target $2019. sandisk is down around 40%. >> many analysts in the $60s or $70s. stifle with a buy. about 25% upside. should drive earnings higher. fuel economy standards mean lighter parts which means may sell more lighter parts. >> they just made a deal yesterday. wells fargo downgrading three big media stocks. all go to market perform. citing this season's earnings report claiming they see value shifting from content to distribution. >> the last stock the under the radar name is spectranetics. needham upgrading to a strong buy. likes the new hiring of the cfo. and excited for a angioplasty

let's bring in our own meg terrell, who follows that industry, and jason kolbert from maxen group who disagrees with eli lilly's ceo. you -- i guess it's all relative terms, but a ceo, he wants to buy at a good price that he can make money down the road. what about for an investor wanting to buy stocks right now, jason? >> it's a great question. listen, i had the same thinking when i looked at alexion in 2007. i saw a $4 billion market cap and meager sales and thought it was overvalued. but if you look at the market cap of alexion today, it's $42 billion. so you can make the assessment that you want to be involved in some of the core t companies and the cancer amino therapy companies, and they look expensive, but when you compare the size of the market, you have to understand they're cheap. i think gilead learned this lesson when they made the acquisition of pharmasat for $11 billion, it looked very expensive, but it looks like they'll completely pay that off in the first year. i think it's all relative to your position. >> that's an interesting point, meg, and i guess that's what som

and meg terrell is here as well.eing here this morning, two minutes after the deal crosses. let me ask you. when you think about this company and the opportunity, one of the things we've been debating all morning is how big a market opportunity is there for this drug? >> i think the opportunity is quite large. you know, it's certainly in the hundreds of millions for us, but hopefully it's in the billions in terms of what this could do from a revenue standpoint. but more important is the unmet need for this disease. a disease that's been established for 40 years. there's been nothing out there. so finally there's an opportunity for women to, you know, address, you know, an unmet need. >> you're calling it a disease. and there's been a big question, though, about this issue. and how this drug got passed by the fda and how much lobbying had to be done and whether -- and the efficacy of this drug. >> so to be sure, science has won the day here. so this is a condition that we've known about medically since 1977. we have f