pharma. j & j is being weighed down by the performance of the two other weaker divisions and if it would stand on its own it would get a much higher valuation and the growth start big pharma even if it's not a scorching biotech. next up the over the counter consumer division. j & j has a portfolio of very strong brands here. we all know them and household, think listerine, okay? band-aids, neosporin, tylenol, holy cow! among many anothers and they've been able to stabilize the business for years, but j & j division know its to lag its peers. do you know this was down in the last year where procter & gamble which isn't doing all that well itself after it saw a.6% increase is as its own separate company, j&j,'s consumer business can focus more spending on more brain power on boosting sales and revitalizing plans without having to share rnd dollars with the other two divisions and i think the j&j business will be a takeover target for some of the larger peers who are fantastic with the brand nam

one of my four horsemen of the pharma apocalypse and they got crushed.n though it seems like the other three have -- well, they have left this one in the dust. what happened to biogen well? first you need to know why it it had traded up to 109 and we kind of trace things out. this stock began rallying and rallying hard last december. that's when they first presented some strong data from the early state study for the experimental alzheimer's drug. nobody expected results that showed biogen's drug working. remember, this was phase one. that kind of thing is basically supposed -- that's supposed to valuate whether or not it was safe. instead, we got some fabulous data points on efficacy for disease that's notoriously hard to treat. given that many pharma giants have tried and failed to come up with a workable solution, this this -- this shot up from 308 to 347. and since then this share never retreated back below the 325 level. at least not until last friday. now biogen had been roaring for years before then, but after the alzheimer's data the company had

big pharma earnings on deck. legendary health care investor with his take on where the next deal will be and how he's putting $15 billion to work right now. plus, our call of the day, barron says one old tech giant could rally 50% over the next few years. will tell you the stock and -- it will tell you the stock and if our experts are equally as bullish next. opinions. there's no shortage in this world. who do you trust? whose analysis is accurate? how do you make sense of it all? a simple, unbiased stock score consolidated from the opinions of independent analysts... is that too much to ask? nope. equity summary score, powered by starmine, will help you execute your ideas with speed and conviction. and it's only on fidelity.com. open an account and find more of the expertise you need to be a better investor. i can offer you no interest sittifor 24 months.oday thanks to the tools and help at experian.com, i know i have an 812 fico score, so i definitely qualify. so what else can you give me? same day delivery. th

pharma, pharma, pharma. this is the industry that the go on forever. talk to us about these two companies. the earnings tell a different story. cynthia: both of these companies have updates investors are paying a lot of attention to. in merck's's case it is an oncology drug. in pfizer's case, it is another drug. results for the key products, which are future for these companies in terms of what they own right now, were positive. in that sense, it was a good quarter for both. matt: a lot of the big pharma companies have faced the problem that the drugs were coming to the end of the patent times and they would be heard by a loss of the earnings and the intrusion of generics. do they not face that? cynthia: that is definitely an issue. especially for pfizer. really, the story about whether or not m&a will be a part of it, that will be a big question today. everyone will listen for even a shift of body language. everyone expects them to do a big deal soon. stephanie: a big deal in terms of acquisitions. cynthia: what investors are looking for is, they coul

certainly pharma is large it's important. but its rev news and resources suggest that it can be part of the solution here when it comes to medical research. people will ultimately benefit from this research but pharma will benefit first. they will develop these new products and when i read this piece i sent a copy out to francis collins. i said it never mentions nih once in the entire article. did you have anything to do with anything that's going on with biogen and lily? he sent me the memo with ten different elements of what basic research at nih led to these developing these new experimental drugs. so there's a linkage there. i think engaging pharma in funding some of this research. >> we had a presession this morning with stacy winninger who is the person who raised $217 million for this first round company denali working on neurodegenerative research. what interested me about the amount of money, which was very large, is one-third of the entire budget of the 666 million they put in. but when you talk to her about this fu

can you sustain that kind of growth in pharma?e are very proud of the transformation that has occurred in our pharmaceutical business. you look over the past several years, the way they have been able to focus and they way they have been able to introduce new therapies. things in prostate cancer. things in type 2 diabetes. things in b cell lymphoma. things that are fundamentally changing people's lives. helping them live longer lives. that is what is most important. secondly, all of our teams have done a great job, whether it is getting reimbursement, whether it is competing with new compounds entering the field. we think when we look at overall what we're doing, and paul stoffels, our head of research talked about it -- carol: i saw you were doing on the west coast. you are very aggressive in terms of going after new products. gorsky: at the end of the day we want the best science and we are very agnostic about where it comes from. but when and where we can help patients, where we can add value, that is where we makes a differenc

you had a lot of pharma companies that did relocate.efore the government came out and said it was going to try to stop this, those companies were coming out -- mylan and alle of those some companies. you have this bifurcation in the industries -- in the industry. u.s. companies cannot compete. i think you will see more of them. mark: what will be the impact on the average consumer? genericargument the companies make is that if you look at it, through scale they are able to get the distribution. they have the distribution channels already and their argument is that it is good for the consumer because they can pass the cost cutting on to the consumer. i would be wary to think that we would see any of it. mark: it seems like in these deals, as with everything, comes down to timing. said --tev is said to be near a deal to buya mylan's all ergan business. elliott, investors are wondering how far this damage could spread. ♪ -- welcome back. i'm mark crumpton with scarlet fu. scarlet: let's head over to julie hyman with a look at the markets.

both of these large cap pharmas tend to beat earnings estimates. you see 20 out of the last 22 times over the last five years, these guys have beaten the analyst estimate. the stock is flat on average the day after reporting average. it's positive 45% of the time. with pfizerser, if you look at the cart, a nice slow steady grind. investors have been awarded. they haven't gotten the large cap biotechnology returns. merck is an interesting one as well. over the past five years, it's actually beaten more times than pfizer has 21 out of the last 22 times. but it too, on average is down about we'll call it .2 of 1% the day after the earnings reports come out. if that was positive 40% of the time. what's interesting, large cap pharma for these guys right there, is not a lot about these large pops. fact, both of these companies, they ten not to go up or down by more than maybe 3-to-5% on a good to bad volatile day. they are typically steady performers. generally speaking pfizer on average, numbers wise over the past five years has gone up one month out mo

>>> big earnings week rolls on with big pharma tomorrow. merck and pfizer reporting their results. 10% year to date. merck, however, pretty much flat. let's see what our data provider kensho has to say about these stocks. >> merck and pfizer, here's what you need to know about these two big pharma companies as we approach their big earnings reports. take a look first at the expectations. with pfizer on average analysts are looking for 52 cents a share in earnings on sales of $11.4 billion. that according to thompson reuters. merck, look for 81 cents in earnings on $9.8 billion worth of sales. those are the headline numbers. kensho took a look at some of the numbers around these particular earnings reports and they found something interesting. first, don't expect a lot of volatility. for instance, over the last five years with pfizer earnings they've beaten average analyst estimates often. 20 of the last 22 times. here's the thing -- the stock doesn't really do anything on average after that report comes out. it's positive about a coin toss -- 45% of the time. a little less than hal

consumer devices, consumer and pharma or perhaps maybe what he should be doing is making a meaningful acquisition like celgene did tonight when it bought receptos for an astounding 232 in cash and when you take bold action celgene. and yes may i just add congratulations to those who bought receptos after my endless recommendations of the ceo that's done such a good job for shareholders. it's not just about earnings. on the eve of the nuclear deal with iran i kept hearing people pun dants of all stripes saying that the moment this deal was signed oil was plummet. i couldn't stop wondering do any of these experts understand how the market discounts things ahead of time? we'll have one of the worst slides in history. the signing of the iran deal. at no time are the results in jeopardy. let's go to jersey. you have to interpret this action. the seminole commodity, oil sets these traders up just knocking me knocking me down down down. how much oil was down ahead of the deal. it rallied and rallied hard taking the stocks of the oil company with them. not only did oil rally $1.20 on a deal b

usually pharma will benefit first. they will develop these new products and when i read this piece i sent a copy out to collins who said it never mentions nih once in the entire article. did you have anything to do with anything that's going on with biojen. the memo with ten elements of what basic research led to these linkage there. i think engaging farmpharma and funding some of this research. >> we had a presession this morning with the person who raised $217 million for this first round company working on research. what interested me about the amount of money, one-third of the entire budget of the $660 million they put in. when you talk to her about this funding gap between those in the lap to develop research and getting to market, those that invest earlier wiped out in the way equity is dill luted. there's a structural bridge not being met. so to just say that pharma should do that doesn't. necessarily figure out the incentive problem. >> i view this question noz not just biomedical research, but related research

we got big pharma company or fda approvals from the drugs. these speculative situations do have a life cycle of a may fly so the trick is first always remember to lock in your profits when you have them so don't get burned when interest wanes. cut some of it down. second, your losses those you have to cut before they become too large. that's the essence of stupid speculation. for instance we said that we liked a tech and a bio tech for trades when we did thelda on speculation fridays. when lightning struck we said take all the gains please. they subsequently cratered and we never looked back although callers said you loved it. the bottom line you need to own something speculative. something that will help you potentially rack up huge dpangains. lots of stocks started speculations. it could be a trickle waiting to happen. "mad money" is back after the break. >>> all night i have been preaching and teaching trying to show you how to build portfolio stocks that can work in virtually any and every type of market from the bears to a euphoric runni

isthis caps a blockbuster year for pharma deals. matt: i will pull out my hs screen today to see how much money you can make off this deal. julie: do it. stephanie: only on the bloomberg terminal. matt: historical spread. it is my favorite function on the bloomberg. samsung side seven straight quarterly profit drop today. operating income fell 4% to $6.1 billion in three months ending in june. sales of the galaxy s six short of expectations despite the fact that my dad bought one. this company is having a hard time winning users away from the iphone 6. stephanie: it is the apple ecosystem they have grown addicted to. you are using it and all forms of your life so it is hard to get away. matt: i will editorialize a little bit here. it is the best ecosystem out there. there is no better platform and no better os. it is simple intuitive. is that too much? stephanie: it is not too much. matt is really going prep school today. now he is saying dude it is the best. i will give you number five. your morning cup of joe is getting more expen

. >>> a major deal in the pharma space, teva in a deal a little over $40 billion.errell is live with more. meg? >> reporter: kayla, the deal comes out to $40.5 billion and the split of cash and stock. $6.5 billion in teva stock giving allergan a stake. it can drop its bid for mylan and will consider its stake in mylan trying to figure out what to do to that. folks are respond to go this positively for teva and allergen. teva, it makes it one of the top ten global makers. for allergen, the chance to pay down its debt and consider other deals. folks are speculating a lot about what it could look to buy next, big potential buys in the works there. for mylan, folks not responding as favorably, down 10% on that teva bid. they say it has a knock for making wealth destroying decisions. this puts a lot of pressure to do that deal with perrigo. their stock up about 4%. we're in an environment in health care where it appears consolidation gee begets consolidation. allergan's ceo saying consolidation among pharmacies went into the rationale for doing this deal. and now you're

. >> this suit case-sized machine is called pharma check. it's purpose is to give healthcare workers a quick on the spot test to assure that mothers and their newborn do not die from contaminated or bogus drugs. >> because people are dying because bad drugs are there and because hospitals are inundated with this problem they want a solution that stops it in its track. >> one of 80 approaches already granted funding in a program aimed to prevent the deaths of mothers and their babies in the first 48 hours after birth. >> the last mile that's where we need to make sure that the best ideas can reach them and saves save lives. >> sponsoring competitions to fund more innovations that promise the greatest improvement in health outcomes. this year 53 finalists were chosen out of more than 750 applications to pitch their wears to investors both private and non-profit. some of these products have proven to be effective in the field, but their true test is how easily and cheaply they're applied on a large scale. this machine provides oxygen for babies

pharma did increase 1%. medical devices, consumer increased 2.3%. myotrin and things like that. are they going to make a big purchase in pharma because they wor were said to be a potential buyer and questions about competition coming to their big rheumatoid arthritis drug. >> thank you very much. straight ahead on the chairman, the ed lazear will join us. the retail sales figures and what he thinks about the nuclear deal with iran. this summer, challenge your preconceptions and experience a cadillac for yourself. ♪ the 2015 cadillac ats. lease this from around $269 per month, or purchase with 0% apr financing here is your news update at this hour. scathing criticism from benjamin netanyahu of the iran nuclear deal calling it a bad mistake of historic proportions and one that israel is not bound to. severe weather causing lots of damage in quincy illinois overnight. the storm packing winds of 70 miles per hour. quincy's mayor declareing a state of emergency for that area. by nasa's calculations, we've made it to pluto. the closest approach came at 7:

plus coy easily see a number of big pharma companies stepping in and creating a bidding war.the end of the day, i like horizon, and i would love it if they could snag depomed because they're old hands at creating major acquisitions. but i have to say we can't count on this deal actually happening. >>> finally, aetna's purchase of humana. everyone is focused on the referendum in greece. this was for $34 billion in cash and stock 23% premium announced last friday. after weeks of rumors about consolidation in the hmo space, this deal, the consolidation has finally arrived. i think acquisition is just hugely positive for etna boosting the total enrollment to 3 million lives. the important thing is with the implementation of obamacare, a lot more people are getting their health care covering from the state and federal changes. and you need scale if you're going to be competitive on these changes. come on, the combined aetna-hume humana where individual companies were too small to indicator to a truly diverse customer base. plus the deal gives a lot more exposure to medicare given

they're looking at old pharma and not new pharma. let's go there. i didn't hear anybody talk at all about the entertainment worldwide, netflix. sure, the tech is infused with creativity, but it's tech nonetheless and it reminds me the pacific ocean with no pearl harbor in sight. no wonder it rallied 18% today alone and is the best-performing stock in the s&p 500. of course we'll have more about netflix later in the show. the last few years everyone wanted it and that was great. they were awful! and now they've given up on the banks just when the most important expense is coming down and coming down hard. the legal expense. the justice department -- the justice department's bank grand inquisitor tony west has left the building. he's going to pepsico! and that was the signal right then and there when he went to raise the numbers of banks. yes, the yield curve with interest that can tell us what you get in the deposits is going higher because of money demand and because the fed will raise rate, but what these money managers miss is the fear and loathin

. >> reporter: this suitcase size machine is called pharma-check. it gives healthcare workers a quick on the spot test to assure that mothers and their newborn don't die from contaminated drugs. >> because people are dieing, because bad drugs are there because hospitals are inundated with these situations, they want a solution that stops the problem in its track. >> reporter: this is one of more than 80 approaches in a program. >> actually, in the rural hardest to reach parts of communities, it's the last mile. so that's where we make sure the best ideas can reach them and save the lives. >> reporter: aid agencies are sponsoring competitions to fund more innovations that promise the greatest improvement in health outcomes. this year 53 finalists were chosen out of 750 applications to pitch their wares to investors, both private and nonprofit. some products have proven to be effective in the field. but the true test is how easily and cheaply they are applied on a large scale. this machine provides oxygen to babies with acute respiratory infections. i

we look for the pharma earnings to watch. >>> and biogen getting slammed today.oving forward fast enough? everywhere you look, it strategy is now business strategy. and a partnership with hp can help you accelerate down a path created by people, technology and ideas. to move your company from what it is now... to what it needs to become. or building the best houses in town. or becoming the next highly-unlikely dotcom superstar. and us, we'll be right there with you, helping with the questions you need answered to get your brand new business started. we're legalzoom and we've already partnered with over a million new business owners to do just that. check us out today to see how you can become one of them. legalzoom. legal help is here. >>> quick market check, the s&p 500 sitting at session lows, seeing some pressure from the tech sector, semiconductors down 1.8%. and shares of anthem and cigna. anthem sealing the deal to acquire cigna for $54 billion. creating the largest health insurer in the united states. look at biotech, major buzz kill for a major drug maker

when we come back biotech company horizon pharma. the stock is up. the ceo is going to join us next and later in squawk alley, an exclusive with the ceo of e-bay as the company officially begins trading as a company without papal. record highs on the nasdaq. we're back in a moment. are you moving forward fast enough? everywhere you look, it strategy is now business strategy. and a partnership with hp can help you accelerate down a path created by people, technology and ideas. to move your company from what it is now... to what it needs to become. >> sharings of horizon pharma are up. joining us is the ceo. you might know timothy because he's been a frequent guest on mad money. how many of these new drugs, the ones that you just acquired are responsible for this up side? >> well, jim, it's a combination of our base business continuing to accelerate and the high peern transaction integrated fully within a few weeks and adding new patients. >> i think people don't understand when you get a drug a lot of people have given up on or didn't know how to sell

the pharma giant raising its full year outlook.ares of merck this morning because earnings are topping by a nickel. don't miss the ceo ken frazier, he's going to be joining squawk on the street at 9:00 eastern time from merck of course. you do not want to miss that. >>> the houston astros are so confident in this season's playoff chances, they asked taylor swift to move a concert at their home ballpark because it would fall in the first week of the playoffs. wow. the astros haven't been to the playoffs since 2005 but their chances look good. they're just one game back in the american league west. there's apparently no bad blood with taylor swift. she moved her concert from october 13th to september 9th. >> they moved to a different league to try to get in. they're not american league now. anyway never mind. >>> luxury hotels are at the forefront of the building boom. there's a 46% -- the three pointers. increase in a number of high end rooms under development compared to last june. the ritz-carlton is set to expand its portfolio of

john heads the drug industry trade group pharma. how much responsibility do drug companies bear for the price of cancer drugs? >> you look at the long period of time, the difficult science, the high cost of developing them, we have to do it in a way that keeps investors willing to give us the money to do that research and development. >> reporter: the chapens are invested in each other, not wanting to choose between their money and their father's life. anne thompson, nbc news, new york. >>> up next here tonight, a 911 call with silence on the other end of the phone leads police to a shocking murder mystery in the heartland. >>> a night of horror in oklahoma after five members of one family were killed in a suburb of tulsa. two teenage suspects are in custody and police say they are related to the victims. the question is why did this happen? we get more tonight from nbc's stephanie gosk. >> reporter: a sergeant for the broken arrow police department claims the scene traumatic. officers responded to a silent 911 call placed from the

wondering where that will come from if the pharma business is the driver. can it continue?> and csx out after the sfwhel what are we expecting from them? >> a couple of years of gang buster growth for the railroad. csx kicks it off for the earnings growth after the bell and analysts are looking at 53 cents per share adjusted representing a 1% decline in eps versus last year. looking for $3.22% in revenue and one of the biggest things to keep an eye on is volume. seen volume in the second quarters for all of the railroad declines and right now analysts are expecting volumes to decline 1.1%. the biggest thing to keep an eye on is going to be coal. cool is actually still a fifth of all revenue for companies like csx. we've seen such pain within coal prices this year. we've seen lagging demand both domestically and internationally so that's going to be a big thing to keep an eye on and lastly fuel surcharges. those have been falling. that's been a tailwind for a lot of transportation companies. your airlines and trucking companies. expect that to be actually a headwind now comi

if we considered it a big cap pharma we'd say it's relatively cheap.he best balance sheet in the industry and the highest margins in the industry. those formulas mean the stock is not as expensive as it looks at first glance. yes, there are names in the biotech space that are ridiculous. celgene is not one of them. >> now on to micron soaring to the tune of 11% on rumors that a chinese-owned firm is prepping a $23 billion bid for the company. mirror securities executive director romit shaw is live in san francisco. great to have you with us. >> thanks for having me. >> does this underscore the fact -- or does this underscore the notion that maybe memory is strategically important? does this put a floor under micron stock? what does this do if the bid is very unlikely, which is pretty much what the street believes? >> yes to both. i think china's interest in memory is definitely real and credible. but i'm skeptical that a deal like this will go through. why do i think it's credible? china spends more money importing semiconductor components than petrole

ryan: the pharma industry thinks it finally has a fix for migraine.t is a very interesting story actually. the current treatment for migraines is actually botox. believe it or not. the story is about four different drug companies all racing to come up with a cure for migraines. it is actually far more widespread than i realized. anna: vintage car values are boosted by social media. tim: it is a new study that shows that people posting on instagram their cars drives demand for these. if you follow david beckham on instagram you will find he is a huge fan of 1930's roadsters. ryan: we will be back. charlie stays with us. ♪ >> commodities crunch deepens. the index trade near it lowest level 2002. gold trade near a five-year low. but ibm falls at her earning miss. -- after earnings missed. >> the drugmaker report a second decline. as wrong u.s. dollar erodes sit -- a strong u.s. dollar eu road sales. -- erodes sales. ryan: it is a very busy morning. >> commodities are bringing a number of threads together. huge drop. gold trading north of $1100 an ounce.

and if you remove the m&a activity in biotech and in pharma and in health care and then certain parts of the tech world you really don't have a lot of reasons why even those places that are showing leadership should be. the financial sell-off to me is the biggest concern because this is the place where i think people are able to one price in better earnings power. multiples were the most attractive within the snch s&p. and a yield curve that was rising. and look where the ten-year is now, breaking down and bond yields telling us something as well. >> don't you think that was the move? >> 100%. >> the dollar weaker -- >> everything is at a critical low -- from the russell to the tnt. the ten-year, 2 1/4 as we went back higher in rates was resistance. it blew through, went to 2 1/2. what was resistance becomes support. at 2 1/4. now we're back through it. i still think yields go lower. i think tim and i would disagree as to the reasons why. i think it's deflationary in nature. with that said i don't think it augurs anything particularly well going forward. getting some deflationary sign

gregg: pharma and biotech can go on forever.f you're trying to figure out where that room is running out, you are thinking what? you're looking at consumer? gregg: one of the bigger risks is antitrust. the handful of deals getting blocked i think the biggest challenge around the antitrust is these deals are out for long time. at&t is waiting to get reviewed. if a transaction gets done that's great. if it doesn't, you will see companies embark on something that leaves them out of play for 18 months. i think if we saw a handful of big transactions get blocked, that would chill some of the activity. erik: we'll goldman ever worked for an activist? gregg: i think it will be highly unlikely. erik: why? it's important to see why your firms don't represent activist? gregg: the corporations are our clients. we do lots of work with them. we advise ceos and boards. we think we are best suited to advise them. if you cross that rubicon and start working with the activist's, it becomes more difficult. you are in the boardroom. erik: they wil

. >> thank you chairman pharma. good morning members and committee tang and marlys. today at the resolution is pushing the monthly contribution amount which the charter requires that the employer contribute towards opinions for employees and retirees. the contribution amount usually refers as the county average is based on annual survey of the 10 most populated counties in california. san francisco uses the average amount as a basis for the employer contribution. this year's tenure there was 10 county average increased by 2% by $11.42. if you have questions about how that was spent all be happy to call -- our actuary to the podium and i urge your support. in approval of this resolution. also, before using this should of code ordinance to prove the health services plan and raise conditions for calendar year 2016. you may recall that last year you approved kaiser permanente rate decrease with no additional increase this year. the blue shield rate has an overall increase of 11.5% this year. during the last three years of service board has brought down the blue shield ra

. >> reporter: this suitcase sized machine is carl pharma check it's purpose to give healthcare workerse remotest areas a quick on the spot test to assure that mothers and their newborn don't die from contaminated or bogus drugs. >> because people are dieing and bad drugs are there and hospitals are inundated with these problems they want a solution that stops it in its track. >> reporter: his product is more than one of 80 approaches almost granted funding in a program aimed at preventing the deaths of mothers and babies in the most dangerous period the first 48 hours after birth. >> in the rule after the hardest to reach parts of communities really the last mile and so that is where we need to make sure some of the best innovations best ideas with actually reach them and the save the lives. >> reporter: for the fifth year aid agencies from the u.s., u.k. canada, norway, and south korea, are sponsoring competitions to fund more innovations that promise the greatest improvement in health outcomes. this year 53 final assists were chosen out of more than 750 applications. to pitch their w

all of last year in pharma we had more than $180 billion worth of mergers.hat in itself was a huge number. a pretty extraordinary -- it brings everyone up to do different stuff. larrikin can go on with different drugs the result of its own merger when activists bought it and rebranded it. true to the form of the merger mania that we are in there was a bolt on acquisition to the tune of about half $1 billion. caroline: thanks, ryan chilcote with the updates on m&a. let's talk economy -- let's talk a greece. the cash-strapped government is set to begin talks with creditors this week. capital controls in the shutdown in the country's financial markets in terms of fifth week. hans nichols is in berlin. hans, great to see back. next deadline -- hans: it doesn't look like this august 20 deadline, with 5.2 million is owed to the ecb. there's a lot of talk right now about bridge financing but that's where the skirmishes s is starting. they arty got 7 billion to make the imf payment -- the question is will the athens government need to take prior action? will they ne

either question about the pharma carveout in the review process. it seems that would require differential treatment to the enjoyment of pharmaceutical patent rights as compared to other fields of technology but the u.s. pharmaceutical industry critiques countries like india currently that treat patent differently in other areas of pharmaceutical patent law such as lost of the patents on drugs that don't show an improvement in safety or efficacy. so the question is if this carveout provision passes will that make it more difficult for the u.s. to argue against those in places like india that have differential treatment? >> i thought about having someone from pharma here or one of the groups. we don't have enough space on the stage. i apologize for that. michelle, i think -- >> so thanks so much for that question. i think you are concerned are interesting and valid concerns. as you know it's a topic being discussed. it has not gone through, legislation is passed by think this is a concern a lot of people are focused on. >> okay. it's interesting. it'

take a look at the pharma stocks on the rise. am j rising significantly.aybe leading to a potential target. allergan is selling off this generic business and getting $40.5 billion it is week to continue to make acquisitions. it has been very inquisitive thus far. the other stock we're talking about is via jen. the shares are arriving today. take a look at my bloomberg tarbell. it would make me a good acquisition chart. they announced a study of alzheimer's treatment, but it has been coming down from that seaurge. i have generally had its forecast was sending the shares down more than 20% in a weaker sales of its ms treatment. all of this means that the stock is a lot cheaper than it was before. that is one of the reasons now that folks are talking about it as a potential target because over the past week or so, it got a lot cheaper in terms of tires looking at it. betty: thank you so much. now a look at some of the top stories of this hour. three public workers are serving new jersey for billions of damages. the filing is the latest folly in a more than ye

but looking ahead to next week we have a biotech and pharma earnings bonanza on tuesday.zer, merck and gilead all reporting. now, gilead kind of the same theme as biogen, wonder whog they're going to buy. these are the companies biotech investors are starting to ask now. even of these big biotechs they're asking where the growth is going to continue to come from. >> is there any reason to add these earnings from gilead next week? >> a lot of folks think there might be because they're competing in hepatitis c. however, gilead is the preferred name there. they have a drug that people like a lot better. folks did worry about some of the comments as you and i discussed earlier about a slowdown in hepatitis c and that's been discussed for a while. that's why the m&a talk is so loud right now. >> meg tirrell, thanks a lot. >> thanks. >> so dan, what does this mean for the nasdaq? >> listen, if you look at the ideas 100, i mean, we often think tech and we know that some of the largest tech names, google, apple, microsoft make up a disproportionate amount of the weight but you al

why are you carrying water for big pharma? >> first we don't comment on supposedly leaked a draft so i don't know what document he has. but let me address the substance of the issue which is when it comes to intellectual property rights protection and particularly those involving pharmaceutical products our view is that on the when and it would want to incentivize the development of life-saving treatments. much of the research and department of life-saving treatments globally is done here in the united states by america's. on the other hand, we want to ensure that access to affordable medicines, particularly in developing countries and that's consistent with the direction we received from congress with regard to how to deal with this issue. we are trying to strike a balance. where 40 million americans whose jobs are dependent on intellectual property insensitive interest. we do think intellectual property is an important set of rights to enforce to protect those jobs here in the united states. at the same time it's critically

profiting from the new world of pharma author as well.rs warm startups like airbnb and it has the attention of the sec. ♪ alix: welcome back to the bloomberg market day. it is time for a look at the markets. we have 15 minutes before the closing bell. julie hyman was looking at the action, which was not that exciting. only oneu were not the to think there would be a more dramatic action to the great referendum, and the supposition maybe we may now see a greater than from the eurozone. we do not know. we are down around half a percentage. if there is indeed a dire consequence, maybe the ecb will be supportive. there is also talk about the facts there will not be that much spillover in terms of negative affect but there are questions outstanding. not down that much but it is a broad-based selloff. 500,of red in the s&p 10 industries groups are down. energy, materials, industrials down the most. commodities is pushing down the stocks as well. it was to get look at the treasury markets. as we see this risk off environment, even though it is n

horizon pharma need a hostile -- made a hostile bid to buy depo med. this is the all-time high.t is the best day in more than 14 years. about $29.25 a share. in more acquisition news, we had to the gambling in this trade. gaming and leisure properties is a proposal toing buy pinnacle casinos. nickel is up by 6% here. this is an all-time high, it 47.5 share. billion.ue of $5 to take you to tesla. , the worstng 4.4% day since january. it is because deutsche bank cut its rating from baidu hold -- from by to hold. dominantld be the player going into the future. tesla shares are up 4% of their record high of $291 .42. take a look at my bloomberg terminal. under the function and are, you -- is athat analysts their lowest since august 2014. analysts are becoming slightly more bearish on the big momentum. mark: thank you, so much. let's get a look at the top stories classing -- crossing the bloomberg terminal. in a 16 fighter jet and a small plane have collided in south carolina. collided witht the cessna c 150 around 11:00 a.m. local time. it happened 11 miles north of charleston. the

a couple of pharma companies, ford, ofrd -- course.ittle disappointment on the top line, but financial engineering boosting the bottom line. things have called down a little -- calm to down a little bit. we see some movement in the british pound, gaining against the euro, the biggest move in about two weeks after british gdp gaming out -- came out, showing the economy grew 0.7% in the second quarter. it is the 10th straight quarter of actual growth for the british economy. markets are pricing in a rate hike in england in about may. beat mark carney may have janet yellen to the punch. olivia: they think they want to do it until next may. our funds are pricing them in for september. but the story was that carney could be the first to raise rates. how times have changed. top headlines -- home prices in 20 big cities rose at a slower pace in may. was upe-shiller index 4.9% from a year ago, less than predicted. the slower rate of appreciation may make it easier for first time home buyers to get into the market. honeywell is spending $5 bill

you think about dealmaking, consolidation and industries, i feel that all the biotech, health care, pharmaare any industries immune to this? >> if you look at the pickup last year there was an game consolidation in u.s. cable that darted things off and a lot of that was across the entire health care space. that with craft and heinz, metro resources and bg shell and the big stake insurance. almost every sector has begun to see activity. we have an m&a market that was running on two cylinders and is now running on four or five. are we not getting to the point where some industries would be locked out? that is going to happen in telecom, right, pretty soon? that with health insurance being there, just last week, it's already happened in airlines. there's already been consolidation in the airline business. what other industries look like they are running out of room to consolidate? >> there may be a deal left. what is driving the frenzy is the end game consolidation. they don't want to be the ones sitting on the sidelines. other sector rumors have continued with lots of activity here today. wh

also horizon pharma increased the takeover for depomed.mpany giving weaker than expected guidance for the full year. said it would cut about 500 jobs. and then bank of new york mellon the bottom line getting a boost from keeping expenses in check. also shake shack now disclosing a secondary offering of up to 4 million shares of common stock. >>> verizon out with earnings. joining us now craig moffett. we get so many different numbers. you know cash flow ebida, all these things. what do you look for to tell you how the company is executing? what's the most important for you? >> good morning, guys. you're right. it's doubly difficult now because they're going through the selling phones. that says you have to be careful with all of these earnings and ebida numbers because they're all inflated by the accounting change. earnings, for example, it looks like they beat by 3 cents. $104 instead of $1.01. they got out of the accounting change, last year got 7 cents out of that. about 5 cents of that is the increased reliance. it makes these things v

they can add more debt than any other company in pharma deal so they can do a big deal if they want to>> more than brent saunders now that he's debt free. >> that was before the allergan deal. >> very interesting products in biotechs that they don't think are overalled. when you cure a disease, i remember when i was growing up and they cured polio, and you thought wow, that's curing a disease. it's worth paying. >> the opening bell is coming up. a lot of companies and earnings to watch. stay with us on skoik. "squawk on the street." more and more, data is visual. in fact, the number of mris has increased by ten percent a year. and a radiologist might view a thousand images to find one tiny abnormality in shape, contrast or movement. because it's so challenging a research project is teaching ibm watson to see. in the future, it could help clinicians spot key patterns quickly and precisely. ibm watson is working to make healthcare smarter every day. >>> you're watching "squawk on the street" live from the financial capital of the world. the opening bell in less than 60 seconds as we're t

why are you carrying water for big pharma? >> we know comment on supposedly drives.don't know what documents he has. let me address the substance of the issue. when it comes to particularly those involving pharmaceutical products, our viewers on one hand we want to incentivize the development of life-saving treatments. much globally is done in the united states by americans in the other hand we want to ensure there is access to affordable medicines typically a developing country is consistent with the direction we are perceived from with regard to how to do with the issue. we are always trying to strike a balance that with 40 million americans whose jobs are dependent on intellectual property. we think intellectual property is an important set of rights to enforce to protect the jobs in the united states. at the same time it's critically important we maintain and increase access to medicine and with the country have done this in a way where 85% of all the prescriptions filled are filled by generic producers. we don't think there's a contradiction between promoting in

horizon pharma has proposed to buy depo med. haszon says the management rejected the proposal. scarlet: gaining and leisure properties raising offers to buy pinnacle casinos by 32%, giving the pinnacle assets and enterprise value of $5 billion. pinnacle owns 15 casinos and racetracks. those were your top stories this morning. we have a lot coming up in the next hour in the bloomberg market day, starting with ibm -- just one of the companies rewarding ceos for buying back shares rather than growing sales. it might be a case of misaligned incentives. carnival moves closer to selling cruise ships to cuba. the u.s. government has approved its request. trips could begin next year. the ceo will join us. matt: sweet. prices in hong kong and shanghai tumbled more than 1%, extending a bear market that has wiped out $3 trillion in profits. those stories and more coming up. while european leaders meet to discuss the debt crisis, how concerned is the market? we will bring in marcolina, president of jm -- mark li na, -- lehman, president of jmp securities. we have heard some interesting tho

see there has been , surge in activity this year it looks like we are on pace for record year for pharmals. the blue lines are the deal amounts. the green lines are the number of deals. as we head into the third quarter, there haven't been that many deals. but this $40.5 million deal really pushes up that line because of the size of it. another health care stock we watching today is biogenic, in of thek -- in the wake big decline we saw in stock last week, there's mixed analyst commentary today. an interesting note coming from j.p. morgan saying a meaningful acquisition could help restore investor confidence in the company, speaking of acquisitions. we will see will buy agendas from here. if you take a look my bloomberg terminal, have a chart of biogenic of the past six months or so, it's tumbledown year to date because of what happened in the last week or so. in march the company released data from a study of one of its experiment will also rose medications that was promising. we saw the stoxx bike. since then, it has been coming down. last week the company released new data about the d

. >> here's what you need about these two big pharma companies as we approach earnings reports. see with pfizer on average they're looking at 52 cents of share on earnings. that according to them. so those are the numbers, the head line ones. they took a look at the numbers around these particular earnings reports and they found something interesting. first of all, they don't expect a lot of volatility. that's going to be a big thing. for instance over the last five yearsing they've beaten average analysts' estimates often. hu're is the thing. the stock doesn't do anything on average after that report comes out and it's positive about a coin toss. 45% of the time. a little less than half the time. faiz e no fireworks. look at merck as well in this particular earnings report. they've come out beating earnings estimates 22 times in the last five years. on average they're about 0.2%. they're positive. now, if you look at the options market right now. options on both merck and pfizer are pricing in what could be a plus or minus 2% move in the stock as we kielkd of get around this ea