You are welcome. Unfortunately, today's news (after the bell) is a little concerning. It looks like Johnson and ALLP couldn't agree on the terms of moving Oxygent into phase III. I'm not sure that this is all that bad of news, but, the market will might shave a few % off the stock first thing tomorrow.
Looking at past situations like this (early '97) the stock gets hit with a majority of the drop at the open. It could fall further than the low it hits in the first few minutes of trading, but, in the past has recovered to above those levels very quickly. I'm going to hold rather than sell and try to get back in lower. Timing is not my strong suit.
ALLP is still a good long term investment. Who knows, maybe we will finish the day unchanged tomorrow. Stranger things have happened.
Alliance Pharmaceutical Corp. and Johnson & Johnson Announce Agreement
SAN DIEGO--(BUSINESS WIRE)--May 14, 1998--Alliance Pharmaceutical Corp. (NASDAQ:ALLP) and Ortho Biotech Inc. and the R. W. Johnson Pharmaceutical Research Institute, both subsidiaries of Johnson & Johnson (NYSE:JNJ), announced today that Alliance and affiliates of J&J have agreed to restructure their collaboration with respect to the development of Alliance's Oxygent(TM) product.
Oxygent is Alliance's intravascular oxygen carrier to temporarily augment oxygen delivery in surgical and other patients at risk of acute tissue oxygen deficit.
Following an analysis of the studies for Oxygent completed to date, the parties disagreed as to the scope and timing of further clinical development, including whether to proceed with Phase III trials at this time and for which indications. In light of these differences, the parties agreed that Alliance should be given control of the clinical development program.
The negotiated agreement provides that Alliance will assume full responsibility at its own cost for the remaining product development and the J&J subsidiaries will retain certain rights to be the exclusive marketing agent for the product. Alliance intends to submit a Phase III protocol to the FDA for the reduction of allogeneic blood transfusion in the near future.
Duane J. Roth, the chairman and chief executive officer of Alliance, stated: "Alliance believes this is the best solution for both companies, given the differences between the parties over the approach to the Phase III clinical development program. Alliance will now be responsible for the conduct and timing of the clinical development program as we believe appropriate. Alliance also believes that if this program is successful, the opportunity for improved profitability would result in a relatively short payback of the anticipated investment required to complete the development." -0- Except for historical information, the matters set forth in this release are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth herein, including the uncertainties associated with the conduct of pre-clinical or clinical studies and the timing or ability to investigate scientific data.
Alliance refers you to cautionary information contained in documents the company files with the Securities and Exchange Commission from time to time, including the last Form 10-K and Form 10-Q, and those risk factors set forth in the recent registration statement on Form S-3 (Registration Number 333-15905).
For further information contact Gwen Rosenberg, Director of Corporate Communications, at 619/558-4375.
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CONTACT:
Alliance Pharmaceutical Corp.
Gwen Rosenberg, 619/558-4375 |
