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Biotech / Medical : Biotech Valuation -- Ignore unavailable to you. Want to Upgrade?

To: tom pope who wrote (8639)	6/5/2003 8:15:53 PM
From: Biomaven	Respond to of 52153

Not sure what planet Forbes is on today: Pharmaceuticals Biotech Deals Go Sour By Aude Lagorce with Matthew Herper, 06.05.03, 5:44 PM ET NEW YORK - Biotech stocks had a mixed day after a spate of news on breakups and layoffs. Isis Pharmaceuticals (nasdaq: ISIS - news - people ) and Eli Lilly (nyse: LLY - news - people ) announced today their decision to abandon their joint manufacturing of cancer drug Affinitak after the drug failed to show significant results in a March trial that would have been used to file with the Food and Drug Administration for approval. Under the new agreement, Isis won't have to pay back the $21 million loan from Lilly it used to complete a new manufacturing facility for Affinitak in February. In exchange, Lilly will be freed from its obligation to pay for the maintenance of an idle site and won't have to buy additional product from Isis. Lilly also will allow Isis to use the site for the manufacturing of other drugs. Isis shares closed up 5.6% to $6.37. Lilly shares closed up 2.6% to $61.72. Meanwhile, NPS Pharmaceuticals (Nasdaq: NPSP - news - people ) and Enzon Pharmaceuticals (Nasdaq: ENZN - news - people ) called off their announced merger today after Enzon refused to reconsider the original stock conversion ratio, saying there was no basis to up the price of its bid. The decision may not be bad news for NPS, which had higher revenue than Enzon. NPS shares have been going up since the merger was called off. NPS will pay a termination fee of 1.5 million common shares, which Enzon will register for resale. Enzon shares slumped 4.7% to $14.30; NPS shares rose 22% to $28.96. What sealed the hat trick for biotech today was Millennium's (nasdaq: MLNM - news - people ) layoff announcement. The firm will cut 600 jobs, or 26% of its workforce, over the next year. Some stock analysts, who have been skeptical that the company can become profitable on the back of its multiple myeloma drug Velcade without trimming fat, cheered the move. "It's painful medicine that needs to be done," says Steven Harr, a biotechnology analyst at Morgan Stanley. He forecasts Velcade sales of $500 million in about five years. Harr does not own shares, and his firm has not done banking with Millennium in the past 12 months. Millennium shares rose 5.8% to $17.08. forbes.com