Susan, thanks for taking the time to add to this thread - one of the few (intel, genzl etc) IR people that do so. This is the latest research report from Lehman Bros:
Headline: Biotechnology: Texas Biotech & Pharmacopeia Sign Collaboration
Author: Butler & Murray (212)526-4410/5689
Company: TXB PCOP
Country: COM CUS
Industry: BIOTEC
Today's Date : 11/20/97
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* Texas Biotech and Pharmacopeia signed a collaboration for drugs targeting
the vascular endothelium that will provide TXB access to PCOP's small molecule
combinatorial chemistry library.
* We view this deal as a modest' positive for both companies as it provides
TXB with additional strength and speed in its drug development pipeline and
further validates PCOP as a leading combinatorial chemistry partner.
* This is NOT the major endothelan partnership that we have anticipated for
TXB. Rather we continue to look forward to this in early 98 as well as
Novastan approval in 2Q98, and both endothelan and selectin Phase II data in
1Q98.
* Pending milestones for PCOP include continued collaborations with both
biotech and pharma companies. We also look forward to a genome partnership
and achieving a milestone payment in 4Q97/1Q98 along with two IND filings in
1998.
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SUMMARY -Texas
Biotechnology Corporation (TXB, $5 7/8, 1-Buy) and Pharmacopeia, Inc.
(PCOP, $18 1/8, 1-Buy) announced that they have agreed to collaborate in the
development of drug candidates in the cardiovascular arena. Specifically, the
alliance will focus on certain undisclosed targets involved in the diseases of
the vascular endothelium (such as stroke and asthma). This broad-based
project will make Pharmacopeia's small molecule combinatorial chemistry
library available to Texas Biotech. While no financial terms were disclosed,
we estimate the such effects to be minimal to either party in the near-term.
The deal, however, affords the companies shared ownership of any compounds to
emerge and thus revenues sharing if any such products are eventually
commercialized.
The collaboration should be viewed as a positive for both companies. For
Texas Biotech it provides an opportunity expedite the progression of lead
candidates and supplements its internal rational design platform. For
Pharmacopeia, this marks the seventh biotechnology collaboration and supports
its stated strategy of leveraging its expertise in small molecule design and
synthesis across a broad base of partners and targets. Texas Biotechnology
has suggested that its reasons for choosing Pharmacopeia among the list of
combinatorial chemistry players include the diversity of Pharmacopeia's
library along with its ability to quickly optimize leads. Further, Dr.
Richard Dixon (head of R&D at Texas Biotech) was the former head of molecular
biology at Merck and has had a close association with several of the
scientists who, also previously at Merck, are now with Pharmacopeia.
CONCLUSIONS ---
-- Pharmacopeia:
Pharmacopeia is expected to continue signing corporate partners from both the
biotechnology and pharmaceutical realms. Also, we believe that the company
will sign its first deal with a genome company late this year or early next.
We would expect that the company will also achieve a milestone with a current
partner and thus trigger a payment from that partner perhaps by yearend 1997.
Finally, we look forward to two IND filings in 1998 - one from the company's
internal development program and one from the external program. As these
events play out we suggest that the stock will build further momentum, thus we
reiterate our 1-Buy rating. |
