Some Big blocks went whizzing by yesterday and today, causing some extreme price fluctuations (this morning saw a large surge of volume of ~50,000 within 5 minutes!). I just ran across this news release which might explain some of the interest (or lack thereof...)
IDEC Pharmaceuticals Corporation
(Nasdaq: IDPH) today announced that the company has acquired worldwide rights
from Pharmacia & Upjohn S.p.A. to 9-aminocamptothecin (9-AC), a broad spectrum
anti-cancer agent for the treatment of cancer. A small molecule
investigational drug in advanced stages of development, 9-AC is currently
undergoing phase II clinical trials under the sponsorship of Pharmacia &
Upjohn and the National Cancer Institute (NCI) for a variety of tumor types.
Pharmacia & Upjohn was required to divest certain rights to 9-AC under a
consent decree issued by the United States Federal Trade Commission (FTC)
resulting from the merger of Pharmacia AB with The Upjohn Company.
Under the terms of the agreement, IDEC will reimburse Pharmacia & Upjohn
for a portion of its development costs in paying $3 million initially plus
additional payments based on achieving specific development milestones. No
royalties are payable to Pharmacia & Upjohn. Further financial details of the
agreement were not disclosed. Finalization of the acquisition is subject,
among other conditions, to the approval of the FTC.
"With IDEC-C2B8 and IDEC-Y2B8 advancing towards commercialization, IDEC's
clinical team is well positioned to take on the development of 9-AC," said
William H. Rastetter, Ph.D., chairman, president and chief executive of IDEC.
"This product represents a valuable and strategic addition to IDEC's product
pipeline, which diversifies our anti-cancer portfolio to include small
molecules as well as biologics for the treatment of lymphomas and solid
tumors."
9-AC has undergone development by Pharmacia & Upjohn and the NCI in both
intravenous and oral formulations. In preclinical and phase I/II clinical
studies, the investigational drug has shown activity against a range of solid
tumors, as well as pediatric and adult leukemias. IDEC plans to augment
currently ongoing Phase II studies with further clinical evaluations of 9-AC
in a variety of tumor types.
A semi-synthetic analogue of the plant-derived molecule camptothecin, 9-AC
(9-aminocamptothecin) belongs to a class of drugs that interferes with DNA
replication by inhibiting a critical nuclear enzyme, topoisomerase I. "Given
the early evidence of broad spectrum clinical activity in Phase II trials and
because its mechanism of action differs from that of most anti-cancer drugs,
9-AC broadens the chemo-therapeutic arsenal, offering oncologists a new weapon
against solid tumors," commented Antonio J. Grillo-Lopez, M.D., senior vice
president of medical and regulatory affairs.
IDEC Pharmaceuticals focuses on developing targeted therapies for the
treatment of cancer and autoimmune diseases. IDEC's products are primarily
designed to act through cellular or immune mechanisms and to offer greater
specificity of action, longer therapeutic effect and/or lower toxicity than is
typical of existing therapies.
IDEC has has a good working relationship with Pharmacia and UpJohn in the past (with cell line development and contract work) so perhaps this represents a good deal for IDEC. Can anyone comment on the $3 million payment to P&U for a drug in phase II trials with broad indications? Of course, we don't know what the milestone payments are... |
