Major Biotechs on the Move (OSIP, DNA, IMCL, LLY, BMY, CRXX)
There is suddenly quite a bit going on in the land of biotech and drug stocks. We have a higher merger, a disappointing “add-on” possibility out of the magical Avastin, and an outright biotech implosion.
OSI Pharmaceuticals Inc. (NASDAQ: OSIP) is getting hit hard in early trading this morning. The biotech has released data showing that a Phase III trial of Genentech’s (NYSE: DNA) Avastin combined with Tarceva in certain patients with advanced non-small-cell lung cancer did not meet the primary endpoint of increasing overall survival compared with Tarceva plus placebo.
In a separate note, Roche and Genentech over the weekend noted that the two companies are joining forces to work with Switzerland’s GlycArt to develop and commercialize one of the Genentech’s oncology agents.
Carl Icahn scored a win for holders of ImClone Systems (NASDAQ: IMCL) is trading up around $69.00 per share this morning. The biotech maker of EBRBITUX and Carl Icahn have formally scored as Eli Lilly (NYSE: LLY) is jumping in front of Bristol-Myers Squibb (NYSE: BMY) with a higher $70.00 buyout rather than the revised $62.00 buyout which Bristol-Myers was hoping to secure. Will a bidding war come into play?
CombinatoRx, Incorporated (NASDAQ: CRXX) has gotten even worse since our first biotech implosion alert after it released data from its Phase IIb study of Synavive (CRx-102) for Knee Osteoarthritis showing that its Synavive test was not statistically significant. The company said that it is a setback for the Synavive program and it will continue to evaluate and analyze the data.
Jon C. Ogg
October 6, 2008