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Biotech / Medical : Munch-a-Biotech Today -- Ignore unavailable to you. Want to Upgrade?

To: Icebrg who wrote (1507)	4/14/2003 7:08:28 PM
From: scaram(o)uche	Respond to of 3158

Awful story. A CEO, trying to make a move that would provide for a depth/breadth story moving forward, walking into a trap that costs jobs and momentum. For the biotech investor? There was, nonetheless, opportunity for profit. Massive ADS bail at 2.30-2.35 by someone executing through B-Trade....... Message 18375451 Message 18376690 So..... shareholders end up getting a truly lousy deal, and those who loaded the boat on the bail end up with a 25% gain in less than four months. I don't know what would happened off of the London low on 12/27. Nigel probably does? Celltech gets all the Neogenesis too. Ugly.

To: Icebrg who wrote (1507)	4/15/2003 7:47:16 AM
From: Icebrg	Respond to of 3158

GenVec and Diacrin to Merge Tuesday April 15, 7:32 am ET New Company Will Advance TNFerade and Expand Vaccine Business; Manufacturing Capabilities and Strong Cash Position Support Product Portfolio GAITHERSBURG, Md., and CHARLESTOWN, Mass., April 15 /PRNewswire- FirstCall/-- GenVec, Inc. (Nasdaq: GNVC - News) and Diacrin, Inc. (Nasdaq: DCRN - News), jointly announced today that they have signed a definitive merger agreement under which GenVec will acquire Diacrin in a strategic transaction that creates a combined company with a strong product pipeline, process development and manufacturing expertise and facilities and significant financial resources to develop and ultimately commercialize innovative therapeutics intended to treat serious and life threatening diseases including cancer and heart disease. Under the terms of the agreement, each share of Diacrin common stock will be exchanged for 1.5292 shares of GenVec common stock in a tax-free reorganization. Based upon GenVec's closing share price of $1.46 on April 14, 2003, the transaction is valued at approximately $40.4 million or $2.23 per diluted Diacrin common share outstanding. GenVec is expected to have approximately $50 million in cash and investments at the end of 2003. GenVec's existing shareholders will own approximately 45.5% of the combined company and Diacrin's existing shareholders will own approximately 54.5%. The acquisition, which has been approved by the boards of directors of both companies, is subject to approval by the shareholders of each company and other customary closing conditions. The transaction is anticipated to close in the third quarter of 2003. "We are combining the key strengths, capabilities and facilities of the two companies to form a strong, focused company with a reduced cash burn, an efficient work force and a significant cash position," said Dr. Paul H. Fischer, GenVec's Chief Executive Officer. Dr. Fischer continued, "This transaction creates a company that can continue to advance the development and commercialization of TNFerade, expand our growing, cash positive vaccine business and enhance our ability to form partnerships that will drive the development of our product pipeline." "The combined company will have the ability to control the cost-effective production of clinical supplies for our product candidates and vaccine program. We will have additional expertise in cardiology, with product candidates for severe coronary artery disease and congestive heart failure. We will be seeking partners for the further development of these product opportunities as well as AdPEDF for the treatment of age-related macular degeneration," stated Dr. Fischer. "We believe this merger will significantly benefit Diacrin shareholders and increase the likelihood of successfully developing myoblast transplantation for cardiac repair. This will be a stronger company with very promising product candidates, an excellent technology platform and enhanced manufacturing capabilities," said Thomas H. Fraser, Ph.D., President and Chief Executive Officer of Diacrin. At the conclusion of the transaction, Dr. Fraser will become Chairman of the Board of the combined company. Dr. Fischer will remain as Chief Executive Officer and a new 9-member Board of Directors will be in place with 5 representatives from GenVec and 4 from Diacrin. Needham & Company, Inc. advised GenVec and SG Cowen Securities Corporation advised Diacrin on this transaction. The parties received legal representation from Arnold & Porter and Hale and Dorr LLP, respectively. About TNFerade TNFerade uses GenVec's patented adenovector technology to deliver the tumor necrosis factor-alpha (TNF-alpha) gene directly into the tumor where it interacts with standard radiation therapy, or chemotherapy, to produce the therapeutic protein, TNF-alpha. With this approach, TNFerade has the potential to improve cancer therapy. TNFerade is currently in Phase 2 clinical trials for pancreatic and esophageal cancer. About The Vaccine Program GenVec is collaborating with the Vaccine Research Center at the National Institute of Allergy and Infectious Diseases of the National Institutes of Health to develop a worldwide preventative AIDS vaccine. This $10.2 million program expands the utility of GenVec's advanced adenovector technology platform. GenVec also has a $1.9 million collaboration with the United States Navy Medical Research Center to create malaria and dengue virus vaccine candidates. About The Combined Product Pipeline The product pipeline of the combined company will feature its lead oncology product candidate, TNFerade. Partnerships will be sought to support the development of the cardiology program, comprised of BIOBYPASS for severe coronary artery disease and cell therapy for congestive heart failure, and for PEDF, a product candidate to prevent vision loss from macular degeneration. The company will seek to expand its revenue-generating vaccine program that currently includes product candidates against HIV, malaria and dengue viruses.

To: Icebrg who wrote (1507)	6/3/2003 5:41:17 AM
From: Icebrg	Read Replies (1) \| Respond to of 3158

Novartis mum on talk it near U.S. biotech takeover Tuesday June 3, 5:32 am ET ZURICH, June 3 (Reuters) - Speculation swirled on Tuesday that Novartis AG (NOVZn.VX) may be stalking a U.S. biotech company as it uses its big cash pile to buy promising experimental products to fuel future growth. Europe's third-biggest drugmaker declined comment on the talk in financial markets, but analysts said the Swiss healthcare group was actively looking for potential deals. Novartis stock slipped 0.4 percent to 52.75 Swiss francs by 0905 GMT, while the DJ Stoxx healthcare index (Zurich:^SXDP - News) fell 0.9 percent. "I wouldn't be surprised" if Novartis did a deal, said Andreas Wicki, chief executive at Swiss investment boutique HBM BioVentures. Novartis, whose solid portfolio of cardiovascular and oncology drugs is generating double-digit sales growth, is awash in cash even as it steps up spending on research to develop more products in house. "They are still building their anti-infectives franchise. They are looking for interesting oncology products. There are still a number of unpartnered, decent programmes in late clinical development," Wicki said. In March Novartis leapt into the fast-growing field of drugs to combat viruses such as hepatitis by agreeing to take a majority stake in U.S. biotech group Idenix Pharmaceuticals for $255 million. It may end up paying nearly $1 billion for the 51 percent stake plus fees to gain access to the firm's drug pipeline. Meanwhile, a cash squeeze has forced many biotech companies to seek external funding at a time they find it difficult to sell fresh stock, so opportunities abound in the sector, Wicki said. "We have over 100 companies with small market caps with phase III (late-stage clinical trial) products in the U.S. right now, some of them having no cash for more than six months, others still trading below cash," he said. Taking an equity stake as well as licensing in the rights to drugs would give Novartis a play on the biotech sector, in which valuations have started to rebound after years in the doldrums. "It might be smart. In the equity world the smaller caps are not in expensive territory. If you want to do a bit of double-dipping, you do both," Wicki said.