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Penn Bioinvestor
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I have extensive knowledge on drug discovery, also I am interested in fundamental analysis of biotech/pharma stocks. See Seeking Alpha's policy on anonymous authors: http://seekingalpha.com/article/69847-seeking-alpha-policy-on-anonymous-authorship
  • Drugs are NOT created equal 0 comments
    Jul 14, 2009 8:00 PM

    Be very careful about micro-cap biotech, even those who have marketed drugs or have NDA pending FDA action. Near half of all biotech companies have only less than six months of cash in hand. A lot of them will disappear in the near future. More Bankruptcy to come. Dumb money think every FDA approval are great news, but they are NOT equal. Some are multi-billion blockbuster, some merely make a small profit, and some even lose money. Traders pushed every stock with good trial result/FDA approval to irrational level price in recent case. It is insane, if you don't know the real value, just play like any other momentum stock, Don't buy and hold.

    Here is a simply example, you will agree with me FDA approval or marketed drugs means nothing if they cannot bring in real value.People need to understand the value of approved drugs. OSCI has two FDA approved drugs,but just filled chapter 11.

    WALTHAM, Mass.--(BUSINESS WIRE)--Oscient Pharmaceuticals Corporation (NASDAQ: OSCI) and its wholly owned subsidiary, Guardian II Acquisition Corporation, today each filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Massachusetts. Oscient and Guardian will continue to manage and operate their businesses and assets during the pendency of the bankruptcy case, subject to the supervision of the Bankruptcy Court.

    The companies currently sell two products, ANTARA® (fenofibrate) capsules, which is a cardiovascular product indicated for the adjunct treatment of hypercholesterolemia (high blood cholesterol) and hypertriglyceridemia (high triglycerides) in combination with diet, and FACTIVE® (gemifloxacin mesylate) tablets, which is a fluoroquinolone antibiotic indicated for the treatment of acute bacterial exacerbations of chronic bronchitis and community-acquired pneumonia of mild to moderate severity.

    In connection with the filing Oscient entered into an agreement with a subsidiary of Cornerstone Therapeutics Inc. for the sale of assets related to FACTIVE. Under the terms of the agreement, Cornerstone will pay Oscient $5 million plus the value of FACTIVE inventory at closing and a royalty on Cornerstone's sales of FACTIVE, less certain adjustments, through the fifth anniversary of the closing date. The sale is subject to customary closing conditions, approval of the Bankruptcy Court and the conduct of a Bankruptcy Court supervised auction process in which Oscient will seek competing bids to achieve the highest price possible for the FACTIVE assets.

    Oscient and Guardian are continuing to explore strategic alternatives, including seeking a buyer for the ANTARA product and other assets.

    It is Oscient's belief that there will be no value for the common stockholders in the bankruptcy liquidation process. Stockholders of a company in Chapter 11 generally receive value only if all claims of the company’s secured and unsecured creditors are fully satisfied. Oscient believes all such claims will not be fully satisfied.

    Themes: Biotechnology
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