Biotech Day In Review: Roche Buys BioVeris For $600 Million

Roche (RHHBY) will pay $21.50 per share or $600 million to buy BioVeris (BIOV). The offer is a 58% premium to the closing price Tuesday.

BioVeris brings with it the electrochemiluminescence [ECL] technology used in its Elecsys product line, an addition to the Diagnostics subsidiary of Roche that will increase its offerings in the immunochemistry sector. Samuel J. Wohlstadter, Chairman and CEO of BioVeris, will vote his 20% bloc of BioVeris shares in favor of the merger. He will also buy vaccine IP from BioVeris and a non-exclusive license to the ECL technology. BioVeris posted a 52% gain, rising $7.06 to $20.66.

pSivida (PSDV) entered a drug delivery collaboration with Pfizer (PFE) that could bring pSivida up to $155 million in sales and development milestones. pSivida will contribute its controlled drug delivery technologies, including Medidur for ophthalmic use. Pfizer will fund development and pSivida will receive royalties on any approved products. On the front end, Pfizer will invest $5 million in pSivida stock. pSivida climbed 21 cents to $2.25.

ImClone (IMCL) and Bristol-Myers Squibb (BMY) reported positive results from a first-line use of Erbitux in patients with metastatic squamous cell carcinoma of the head and neck. In the trial, Erbitux plus chemotherapy increased overall survival over chemotherapy alone. More detailed results will presented at ASCO in June. ImClone was $2.02 higher at $42.29.

Pharmacyclics (PCYC) filed its request for approval of Xcytrin injection, a treatment for non-small cell lung cancer with brain metastases, over protest. In February, the FDA refused to accept the filing because Xcytrin did not prove a benefit. Pharmacyclics pointed out that the indication does not have a satisfactory therapy and that Xcytrin increased the median time-to-neurological-progression from 10 months to 15.4 months. This was below the level of statistical significance, but a noticeable improvement, according to the company. Pharmacyclics rose 8 cents to $2.72.

CytRx (CYTR) announced preclinical data showing arimoclomol significantly aided recovery of sensory and motor function in rats following a stroke. Unlike most current stroke drugs, arimoclomal was not given immediately after the event, but administered up to 48 hours after the stroke occurred. CytRx will put the drug into a Phase II trial for stroke; it is already being tested as a treatment for Lou Gehrig’s disease. CytRx shot 58 cents higher to $5.15.

Genzyme (GENZ) and Bayer (BAY) have asked the FDA to approve Campath as a first-line therapy for B-cell chronic lymphocytic leukemia [B-CLL]. The drug is currently approved as a second-line treatment. Genzyme was off 9 cents at $60.35.

Celgene (CELG) said interim reports from the data monitoring committee show that a low dose of dexamethasone and Revlimid provided a survival advantage over a high does of dexamethason and Revlimid in patients with multiple myeloma. Celgene rose 13 cents to $55.50.

Eurand, an Italian biotech, said Zentase showed efficacy as a treatment for Exocrine Pancreatic Insufficiency [EPI] in its Phase III trials. The drug has fast track status in the U.S. Eurand will file for approval of the drug in Q2. Exocrine is a porcine-derived pancreatic enzyme replacement therapy that is highly stable. If approved, the drug will be given to cystic fibrosis patients who suffer from EPI, including pediatric patients under the age of 7.

Icagen (ICGN) fell after announcing that it would discontinue a test of senicapoc for sickle cell disease. The data monitoring committee advised Icagen that the drug would not meet its endpoints as the biomarkers were not materially improved over the placebo. The drug was being developed in partnership with Johnson & Johnson (JNJ). Icagen fell 24%, dropping 45 cents to end at $1.39.

Biotech closed the mid-week session with a solid gain. The Centient Biotech 200™ rose 20 points to 3948, an increase of .51%. The S&P 500 moved up .11% and Nasdaq was higher by .34%.

Disclosure: none.

Comments

[jimmy Turano:]

Can any experienced successful biotech investor either concur or disagree with the following please.
symbol:NSTK price:$11.12
Based on fundamentals,poor earnings,ratings,delay... payments by PG for another 9-12 months, and a slated 2009 potential approval, for its obesity drug,and knowing in advance the March and December 2007 earnings reports
showing a loss, isn't it wise to at this time, not to be invested in this stock, based upon all the writing on the wall?
JT

2007 Apr 07 09:40 AM