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Strategies & Market Trends : Speculating in Takeover Targets -- Ignore unavailable to you. Want to Upgrade?

To: richardred who wrote (2586)	12/23/2010 9:30:33 AM
From: richardred	Respond to of 7239

Deals to Be Done After AstraZeneca Setback By Jacob Plieth The halt in development by AstraZeneca of its most advanced follow-up compound for respiratory syncytial virus (RSV) infection might spur interest in a handful of earlier-stage projects. Developing a vaccine for the disease remains a significant long-term goal for the biotech industry. The discontinuation of motavizumab changes the playing field in this potentially lucrative disease area, and makes Alnylam Pharmaceuticals Inc. and Cubist Pharmaceuticals Inc.’s ALN-RSV01, currently in Phase II trials, the most advanced RSV therapy in development. A successful outcome in the study would surely prompt Cubist to consider buying out its junior partner, and might even renew speculation about a larger company buying out Cubist. Much earlier in development, meanwhile, MicroDose Therapeutx Inc, Novavax Inc. and NanoBio Corp. — the last two working on vaccines — offer possible licensing opportunities. Of course, any potential partner — or indeed acquirer — would need to look far ahead, given that research here is still at a very early stage. Moreover, AstraZeneca is still the undisputed leader in this space, and won’t give up this position easily. The U.K. company sells Synagis, the only drug approved for prevention of RSV in high-risk infants. Despite having only moderate efficacy, Synagis generates around $1 billion of sales a year, and Nomura analysts expect this level to be maintained; it isn’t a fast-growing drug, but should generate steady revenue at least until its patents start to expire in 2018. Motavizumab was being developed as a more effective follow-up to Synagis, and had completed clinical studies — hence the hefty $445 million write-off booked by AstraZeneca when it was canned. The company has additional projects in the pipeline, including another follow-up in Phase I, and two vaccines in Phase I/II studies. Of interest to a rival company wanting a slice of the action could be currently unpartnered clinical-stage projects under way at MicroDose Therapeutx, a private U.S. firm, and Australia’s Biota, although the latter is looking to follow-on molecules after the failure of a lead in Phase Ia trials. And while AstraZeneca leads in the vaccines space, don’t rule out the preclinical vaccines on which Novavax and NanoBio are working. The first has just received clearance to start a Phase I trial, making it the only RSV vaccine except AstraZeneca’s to get it into the clinic. NanoBio, meanwhile, last month secured a $6 million development grant from the Bill and Melinda Gates Foundation, which should propel its vaccine toward human studies. Expect companies like Novartis and Merck & Co. Inc., which have a history of work in this area, to keep an eye on the RSV vaccine space. Given the preclinical stage of development, either project could likely be licensed for a modest up-front payment and the promise of future milestones. Sure, successfully developing an RSV vaccine will be no picnic, and many obstacles will lie in the way, as earlier thwarted attempts have shown. But the fact that RSV is the leading cause of childhood hospitalization, along with the possibility of using an approved drug or vaccine in the elderly and thus expanding the market, should underpin industry efforts to improve on Synagis. This article originally appeared on Dow Jones Investment Banker. To find out more about the service please visit: www.dowjones.com/ib/ blogs.wsj.com

To: richardred who wrote (2586)	1/9/2011 3:23:42 PM
From: richardred	Respond to of 7239

AstraZeneca Setback on RSV Drug Could Spur Deals The halt in development by AstraZeneca PLC of its most advanced follow-up compound for respiratory syncytial virus infection, or RSV, might spur interest in a handful of earlier-stage projects. Developing a vaccine for the disease, which can be serious for infants and the elderly, remains a significant long-term goal for the biotech industry. The discontinuation of motavizumab changes the playing field in this potentially lucrative area, and makes Alnylam Pharmaceuticals Inc. and Cubist Pharmaceuticals Inc.'s ALN-RSV01, currently in Phase II development, the most advanced RSV therapy in development. A successful outcome in the study would surely prompt Cubist to consider buying out its junior partner, and might even renew speculation about a larger company buying out Cubist. Meanwhile, companies with drugs much earlier in development, such as MicroDose Therapeutx Inc, Novavax Inc. and NanoBio Corp.—the last two working on vaccines—offer possible licensing opportunities. Of course, any potential partner—or indeed acquirer—would need to look far ahead, given that research is still at a very early stage. Moreover, AstraZeneca is still the undisputed leader in this space, and won't give up this position easily. The U.K. company sells Synagis, the only drug approved for prevention of RSV in high-risk infants. Despite having only moderate efficacy, Synagis generates around $1 billion of sales a year. Motavizumab was being developed as a more effective follow-up to Synagis, and had completed clinical studies, hence the hefty $445 million write-off booked by AstraZeneca when it was canned. The company has additional RSV projects in the pipeline, including another follow-up in Phase I and two vaccines in Phase I/II studies. Of interest to a rival company wanting a slice of the action could be currently unpartnered clinical-stage projects under way at MicroDose Therapeutx, a private U.S. firm, and Australia's Biota, although the latter is looking to follow-on molecules after the failure of a lead in Phase Ia trials. Successfully developing an RSV vaccine will be no picnic, and many obstacles will lie in the way, as earlier thwarted attempts have shown. But the fact that RSV is the leading cause of childhood hospitalization, and the possibility that an approved drug or vaccine could be used to treat the elderly and thus expand the market, should underpin industry efforts to improve on Synagis. online.wsj.com

To: richardred who wrote (2586)	4/5/2011 9:59:20 AM
From: richardred	Respond to of 7239

CBST patent challenge now resolved. A nice positive reaction. IMO-increases the speculative appeal with a big cloud now removed. Fourteen dollars in cash per shares helps. Cubist Pharmaceuticals Inc.’s (CBST 29.33, +4.08, +16.16%) shares climbed 17% after Wedbush analysts upgraded the stock to outperform from neutral. Earlier, Cubist said it granted Teva Pharmaceutical Industries Ltd. a license to sell a generic version of its Cubicin, or daptomycin, antibiotic in the U.S. marketwatch.com