• Dec. 28, 2016, 12:06 PM
    Dec. 28, 2016, 12:06 PM | 7 Comments
  • Dec. 15, 2015, 8:32 AM
    Dec. 15, 2015, 8:32 AM | 14 Comments
  • Mar. 5, 2015, 8:52 AM
    • AbbVie's (NYSE:ABBV) extraordinarily generous buyout of Pharmacyclics (NASDAQ:PCYC) is a crystal clear example of how keen big pharma is to boost its prospects with biotech drugs with blockbuster potential. The transaction's $20B tab, backing out PCYC's $1B cash balance, values Imbruvica (ibrutinib) at $40B since Pharmacyclics' commercial partner Johnson & Johnson (NYSE:JNJ) gets 50% of Imbruvica's revenue. This implies a multiple of almost 7x Imbruvica's projected peak sales of $6B. By comparison, Amgen's (NASDAQ:AMGN) takeout of Onyx Pharma and Sanofi's (NYSE:SNY) takeout of Genzyme were both at 5x premiums.
    • The looming patent expiration for Humira ($12.5B in sales the past four quarters) undoubtedly provided AbbVie extra incentive to get the deal done.
    • Adding 50% of Imbruvica's sales to AbbVie's top line should increase its revenue growth 3 - 7% and EPS growth 8 - 11% through 2020.
    • According to RBC analyst Michael Yee, other biotechs on the big ticket acquisition radar are: BioMarin Pharmaceuticals (NASDAQ:BMRN), Dyax (NASDAQ:DYAX), Esperion Therapeutics (NASDAQ:ESPR), United Therapeutics (NASDAQ:UTHR), Vertex Pharmaceuticals (NASDAQ:VRTX), Intercept Pharmaceuticals (NASDAQ:ICPT), Juno Therapeutics (NASDAQ:JUNO), Kite Pharma (NASDAQ:KITE), PTC Therapeutics (NASDAQ:PTCT) and Receptos (NASDAQ:RCPT).
    Mar. 5, 2015, 8:52 AM | 5 Comments
  • Jan. 14, 2015, 9:42 AM
    • In an all-stock transaction, privately-held Tobira Therapeutics will merge with a wholly-owned subsidiary of Regado Biosciences (RGDO +59.3%). The combined organization, renamed as Tobira Therapeutics, will focus on the development of novel treatments for liver and inflammatory diseases. Tobira CEO Laurent Fischer, M.D., will lead the firm.
    • Tobira's lead product is cenicriviroc (CVC), a Fast Track-designated anti-fibrotic agent currently in Phase 2 development for non-alcoholic steatohepatitis (NASH).
    • A Tobira investor syndicate has committed to invest up to $22M to fund CVC's development through Phase 2. Tobira's quick asset balance will be ~$60M after the investment.
    • Under the terms of the merger, Regado shareholders will own ~32% of the combined entity while Tobira shareholders will own ~68%. The specific allocation will depend on Regado's net cash balance at the time of the transaction.
    Jan. 14, 2015, 9:42 AM | 5 Comments
  • Jan. 13, 2014, 7:45 AM
    • Intercept Pharmaceuticals' (ICPT) shares are -30% on what appears to be light volume after the stock skyrocketed 516% on Thursday and Friday following news that a trial for the company's (ICPT) beticholic acid (OCA) for the treatment of nonalcoholic steatohepatitis (NASH) was stopped early due to high efficacy.
    • Intercept believes that an increase of "bad" cholesterol and decrease of "good" cholesterol in patients will probably be similar to results reported in 2009 regarding a trial of diabetic patients with nonalcoholic fatty liver disease.
    • The efficacy, safety and tolerability profile of OCA was the basis for the drug's selection for treating NASH.
    • There is also preclinical evidence that OCA may be "able to shunt excess lipids away from collecting in arteries and other organs, which could also be beneficial," Intercept says. (PR)
    • Intercept CEO Mark Pruzanski says the company is open to working with a partner to bring OCA to market.
    Jan. 13, 2014, 7:45 AM | 1 Comment