Biogen, Earnings & Buyouts…
We prepared a full earnings preview for Biogen Idec (NASDAQ: BIIB) over at 24/7 Wall St. The company responsible for Tysabri reports earnings on Friday morning. Our main question here with so many larger drug and biotech players looking to do deals is whether or not Biogen Idec can land itself a buyer…. or if it will decide to go do a deal of its own.
Other companies noted are Pfizer (NYSE: PFE), Wyeth (NYSE: WYE), Genentech (NYSE: DNA), Glaxo SmithKline (NYSE: GSK), Sanofi-Aventis (NYSE: SNY), Amgen (NASDAQ: AMGN), Celgene Corporation (NASDAQ: CELG), Gilead Sciences (NASDAQ: GILD), Genzyme Corp. (NASDAQ: GENZ), and Elan Corp. plc (NYSE: ELN).
JON OGG
February 5, 2009
Smaller MS Players Stand To Benefit (BIIB, ELN, PSTI, ACOR, TEVA)
There is a shot that smaller speculative multiple sclerosis companies that have treatments in pre-clinical studies or those in early stage studies may tend to actually benefit from TYSABRI’s woes after Biogen-Idec (NASDAQ: BIIB) and Elan Corp. plc (NYSE: ELN) dropped the bomb over the last week.
This morning a smaller company named Puristem Therapeutics, Inc. (NASDAQ: PSTI) is gaining after it released news that in-vivo tests for is PLacental PLX cells showed promising results in potentially treating MS. Keep in mind that these in-vivo tests were on animal models, and mice and monkeys oftemn react much differently than when the tests start being conducted on humans. Plristem’s shares are up about 5% at the open at $1.165.
Teva Pharmaceutical Industries Ltd. (NASDAQ: TEVA) is also deemed a winner as its COPAXONE for MS is going to be less pressured now that it is making such a large acquisition. Either way, many patients in this field with MS are not going to switch to generics as this is a highly untreated and currently uncrable disease.
This bad TYSABRI news may have also kept Acorda Therapeutics Inc. (NASDAQ: ACOR) from being hit too hard after its 4 million share secondary was priced at $28.50 per share last week. Proceeds went to the company for further R&D and NDA filings.
Ultimately, Elan and Biogen will likely escape too much fallout from its MS woes after more PML cases in those using TYSABRI. But the woes will likely allow smaller companies making positive MS announcements in various studies to rally further on the news than they might have just a week or two ago. We are at least seeing that in one such stock this morning.
Jon C. Ogg
August 11, 2008
MS & Diabetes Hopeful Bayhill No Longer IPO Candidate
Bayhill Therapeutics Inc. was a company we had been expecting to come public for a while. This was going to be a play on autoimmune diseases like multiple sclerosis, but the company has now has withdrawn registration for what it had listed as an $86.25 million IPO.
You can probably guess the reason: unfavorable market conditions.
This was one of the ones we had followed ahead of the IPO because the company has raised what appears to be north of $60 million in venture capital funding rounds. Traditionally, companies in biotech that raise more than $25 million in venture capital tend to come onto many investor radars from VC’s to investors to institutions.
U.S. Venture Partners, Morgenthaler Ventures, De Novo Ventures, CMEA Ventures, Lilly Ventures,and others have stakes from various funding stages.
The company’s MS treatment study is actually beyond initial Phase II stage, and its diabetes study is still in Phase I studies. Investors are likely going to have to hold out longer for a new IPO that would have served these major opportunities.
Jon C. Ogg
June 30, 2008
Teva's Copaxone MS Franchise Under Generic Fire (TEVA, MYL)
Shares of Teva Pharmaceuticals (NASDAQ: TEVA) are under fire this morning, in a move which has more irony than one might guess. Mylan inc. (NYSE: MYL) has signed a licensing pact with India’s NATCO Pharma Ltd. to produce a generic version of Teva’s multiple sclerosis treatment called Copaxone.
This involves access to NATCO’s pre-filled syringes of glatiramer acetate, the generic name for Copaxone. Mylan gains exclusive distribution rights as part of the deal in the United States, major markets in Europe, Japan and elsewhere. NATCO already has commercialized its glatiramer acetate product in India and Ukraine.
Copaxone generated about $1.7 Billion in sales for Teva last year, and the company’s totsal currency-converted revenues were about $9.4 Billion. If you have followed Teva for some time you might appreciate the irony in this if you are not a shareholder. Guess were Teva’s largest revenues come from… generic drugs.
Teva closed at $44.76 yesterday and shares are down over $1.00 in pre-market trading on almost 500,000 shares with about 35 minutes to the open.
Jon Ogg
June 10, 2008
Acorda Scores Great Phase III Data (ACOR)
Acorda Therapeutics Inc. (NASDAQ: ACOR) has announced positive data from a second Phase III study of its Fampridine-SR for patients’ walking abilities who suffer from multiple sclerosis. As a result, shares surged at the open.
The company noted that a greater proportion of people taking Fampridine-SR in the Phase III trial had a consistent improvement in walking speed compared to people taking placebo with rates being 42.9% versus 9.3%. These results were measured by a timed 25-Foot walk, which is the standard of that measurement. This even showed an improvement in the secondary outcome measured in leg strength versus the placebo. The company says that this will also be sufficient to submit a new drug application with the FDA in the first quarter of 2009, and it plans to submit a priority review as well.
There is unfortunately still no cure nor any prevention/vaccine for MS. But any drugs that can mitigate the effects of MS all have blockbuster potential of more than $1 Billion in annual sales.
Acorda is gapping up significantly at the open and doing so on strong volume. Right after the open, it saw trading volume of 1,390,024. It usually trades 570,000 shares per day. It closed at $21.56 on Friday and shares just opened at $26.13. Its 52-week trading range is $15.80 to $28.14.
Jon Ogg
June 2, 2008
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