Your Daily Pharma Scoop: Progenics Rallies, Merck To Partner With Eisai, Teva Upsizes Debt Offering
- Progenics shares surged on strong Q4 Relistor sales.
- Merck and Eisai announced a collaboration for LENVIMA.
- Teva upsized its debt offering.
Analysis of top Seeking Alpha coverage: Progenics
Today we will discuss Progenics Pharmaceuticals (NASDAQ:PGNX), which is rallying after robust Relistor sales figures for the fourth quarter. Relistor has been out-licensed to Valeant (VRX) and Progenics gets a 15% royalty on net sales.
In the fourth quarter, Relistor sales totaled an impressive $24.6 million, indicating that Valeant is finally in a position to give it a push. Valeant's debt woes over the last two years have meant that the company has been cutting back on expenses as it looks to streamline operations. But in the past year, the company has managed to pay down significant portion of its debt and there are signs of growth coming back. This is good news for Progenics and is also highlighted by Q4 Relistor sales numbers, which were a record. If the revenue run rate can be maintained this year, Relistor sales would reach $100 million.
Relistor though is just a bonus. The real value lies in PGNX's pipeline as we have noted before and an important catalyst with regards to this is coming up. The FDA will take a decision on the Azedra NDA and as we have said before, the trial met the requirement under the Special Protocol Assessment (SPA), which means that there is a strong chance of approva.
If Azedra is approved, we see another 40%-50% upside in PGNX from current levels. We believe that it would also be prudent to take some profit currently on offer, especially if PGNX shares were picked up at February lows.
Stocks in News: Analysis of MRK
Merck (MRK) has signed a collaboration agreement with Eisai Co. to co-develop and co-commercialize LENVIMA (lenvatinib mesylate), an orally available tyrosine kinase inhibitor, as monotherapy and in combination with KEYTRUDA (pembrolizumab).
Analysis: Under the terms of the agreement, Eisai will book global sales and the two companies will equally share profits. Merck will pay Eisai $300 million upfront, up to $650 million for certain option rights through 2020, $450 million for R&D reimbursement, up to $385 million in clinical and development milestones and up to $3.79 billion in sales milestones.
In other news
VistaGen (VTGN) announced that the USPTO has issued a Notice of Allowance to the company for its patent application No. 15/018,219 related to methods of treating depression with AV-101, currently in Phase 2 development for major depressive disorder (MDD). When issued, the patent will be in effect until at least 2034.
Conatus Pharmaceuticals (CNAT) reported a loss of $0.15 per share in its fourth quarter, beating consensus forecast by 2 cents. The company's revenue for the quarter was $8.8 million, missing consensus forecast by $0.69 million.
Teva Pharmaceutical (TEVA) has upsized its offering of senior notes from $3.5 billion to $4.5 billion. The offering includes $1.25 billion of 6% notes due 2024, $1.25 billion of 6.750% notes due 2028, euro 700 million of 3.250% notes due 2022 and euro 900 million of 4.50% notes due 2025.
Dynavax (DVAX) reported a loss of $0.45 per share in its fourth quarter, missing consensus forecast by 12 cents. The company's revenue for the quarter was $0.02 million, down 99.7% on a year-over-year basis. Revenue missed consensus forecast by $4.09 million.
VBL Therapeutics (VBLT) announced that a phase 3 trial, GLOBE, evaluating its VB-111 in combination with Avastin failed to impact overall survival (OS) compared to Avastin alone in patients with recurrent glioblastoma.
Clovis Oncology (CLVS) announced that the USPTO has issued a Notice of Allowance for its Patent Application No. 14/828,065 for claims to high-dose formulations of rucaparib (Rubraca). The patent, once issued, will protect all commercial doses (200 mg, 250 mg and 300 mg). It will be in effect until 2035.
Caladrius Biosciences (CLBS) announced interim data from a phase 2 study, T-Rex, evaluating CLBS03 in adolescents with recent-onset type 1 diabetes (T1D). The company said that CLBS03 remains well-tolerated.
Editor's Note: This article covers one or more microcap stocks. Please be aware of the risks associated with these stocks.
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