Record Number of Biotechs Under Strategic Review (BPAX, CEGE, EPIX, IDMI, NRGN, TPTX, LJPC, NFLD)
It is hard to know if this is a record of the number of biotech stocks which are under strategic review, but the number is above and beyond normal. Biosante Pharmaceuticals, Inc. (NASDAQ: BPAX), Cell Genesys, Inc. (NASDAQ: CEGE), EPIX Pharmaceuticals, Inc. (NASDAQ: EPIX), IDM Pharma, Inc. (NASDAQ: IDMI), Neurogen Corporation (NASDAQ: NRGN), and TorreyPines Therapeutics, Inc. (NASDAQ: TPTX) are all under strategic reviews and many of their futures are probably questionable at best. Even La Jolla Pharmaceutical Co. (NASDAQ: LJPC) is in this group; and Northfield Laboratories Inc. (NASDAQ: NFLD) fits loosely into this category while not being a classic biotech.
Biosante Pharmaceuticals, Inc. (NASDAQ: BPAX) has Deutsche as its advisor in its exploration of strategic alternatives. This stock is at $2.06 and its 52-week range is $0.81 to $5.85. This used to be a $10 stock and it has been public since 2001. Back in December, Kingsbridge committed to provide up to $25 million of capital for a period of two years. This one was set up to explore treatments for female sexual health, menopause, contraception, and male hypogonadism.
Cell Genesys, Inc. (NASDAQ: CEGE) retained Lazard last month to help it explore strategic alternatives now that most of its operations have been wound down. Some were once hoping it would have the same sort of hope that Dendreon had for prostate cancer, but that is history now. Amazingly enough, this one has been public since the early 1990’s and shares used to be massively higher than now.
EPIX Pharmaceuticals, Inc. (NASDAQ: EPIX) has JPMorgan to help it explore strategic alternatives. This one is at $0.30 and the 52-week range is $0.21 to $2.50. EPIX has been public since 1997 and was usually above $10.00 until late in 2005. It never saw that again. This is set up to treat diseases of the central nervous system and lung conditions.
Read more
La Jolla Pharma Gets Lupus Lifeline from BioMarin (LJPC, BMRN)
La Jolla Pharmaceutical Company (NASDAQ: LJPC) may have just gotten a much needed lifeline after the close. The company has signed a development and commercialization pact with BioMarin Pharmaceutical Inc. (NASDAQ: BMRN) for its Riquent®, La Jolla’s investigational drug for lupus nephritis. Riquent is currently being evaluated in a Phase 3 clinical study for Lupus Nephritis, a condition which is currently considered a high unmet need and orphan disease.
If you have followed La Jolla Pharmaceuticals very long, you will likely know how dire their situation was previously looking. Under the terms of the agreement, BioMarin will receive a co-exclusive license to develop and commercialize Riquent. The terms state that La Jolla could receive up to $289 million in cash, which would come through milestones and equity purchases by BioMarin.
Specific payments include $15 million upfront, and can be up to approximately $92.5 million related to clinical milestones. This is via $55 million for regulatory milestones, and up to approximately $126 million for achieving specified annual net sales milestones beginning at $250 million in sales.
Read more
