Biotech In Review: Dyax Jumps On Positive Data

Dyax (DYAX) reported its hereditary angioedema drug DX-88 produced positive data in a Phase III trial. DX-88, a recombinant, plasma kallikrein inhibitor, treats acute attacks of HAE, a genetic disease characterized by episodes of swelling and inflammation.

The drug produced a statistically significant reduction in symptom scores in a shorter period of time than placebo. Dyax enjoyed a 49% climb, moving up $1.97 to $5.97.

Arcoxia, the COX-2 inhibitor painkiller from Merck (MRK), was vetoed by the FDA advisory committee, which voted 20-1 against recommending the drug for approval. The drug has been under review at the FDA for three years, but the Vioxx scandal hit before Arcoxia was approved. Merck kept pushing the idea that Arcoxia did not suffer from the same side effects that doomed Vioxx, but panel members saw lots of side effects they did not like. And the drug did not offer any advantages over alternatives.

Last year, Arcoxia produced $265 million in revenue from the 62 countries in which it is approved. Merck stock is above the mid-$40 range, which was the price it held when Vioxx was withdrawn from the market. Merck actually was exceptionally strong Friday because a federal judge dismissed a class action lawsuit, bought by shareholders disgruntled by the Vioxx problems. The judge ruled the statute of limitations had run out on the suit. Merck soared 8%, rising $3.85 to $50.21, its highest price in 3 years.

Qiagen (QGEN), a Dutch maker of lab tools and diagnostics, struck a deal to buy eGene (EGEI.OB) for $34 million. The offer will consist of $0.65 in cash and 0.0416 common shares of Qiagen for every share of eGene. eGene makes the HDA-GT12 Genetic Analyzer, a multi-capillary system that incorporates many capabilities in one platform. Qiagen rose 3 cents to $18.01.

GlaxoSmithKline (GSK) received FDA approval for Altabax, a topical treatment of impetigo. The novel mechanism of the ointment means it will be used for cases of the disease that are resistant to existing drugs. GSK was $1.03 higher at $58.10.

Alkermes (ALKS) won approval for a lower dose of Risperdal Consta, a long-acting injection for patients with schizophrenia. The low-dose version is intended for patients with renal and hepatic impairment. Janssen markets the drug in the U.S. Alkermes was up 6 cents at $15.47.

Eisai withdrew its request for approval in Europe of Aricept, an Alzheimer’s drug. European authorities requested more data showing that the drug was effective. Aricept is available in the U.S.

ViroPharma (VPHM) released additional data on its hepatitis C drug from a Phase Ib trial. The test showed that a combination of HCV-796 and pegylated interferon alfa-2b was more effective than either drug alone. The trial was conducted in treatment-naive patients who suffered from various genotypes of hepatitis C. ViroPharma gained 8 cents to $15.31.

Anadys (ANDS) said that in vitro studies of ANA380 was potent against multiple mutant strains of hepatitis B. The strains were resistant to several presently available drugs. Andadys edged up 2 cents to $4.53.

Ceregen began a double-blind Phase II trial of its gene therapy drug for Parkinson’s disease. CERE-120 was well-tolerated in its Phase I test and reduced symptoms by 35%-40% in months 6-12 post treatment. The trial is supported by the Michael J. Fox Foundation.

Biotech ended the week on a strong note. The Nasdaq Biotech Index rose .69%. The S&P climbed .35% and Nasdaq was higher by .47%.

Disclosure: none.