The Burrill Weekly Brief | September 07, 2010
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DOJ Seeks Stay in Stem Cell Ruling
Podcast: September 7, 2010
The U.S. Department of Justice has filed an appeal to the recent preliminary injunction issued by a federal district court judge that halted federal funding of human embryonic stem cell research. At issue is Judge Royce Lamberth’s broad interpretation of the Dickey-Wicker Amendment, which prohibits the U.S. government from funding research in which a human embryo is destroyed. We spoke to Ken Taymor, executive director of the Berkeley Center for Law, Business and Economy about the judge’s ruling, the Justice Department’s request for a stay, and the legal and legislative fights ahead. Read More Here
By The Numbers
Genzyme Rejects Sanofi’s $18.5 Billion Takeover Offer
CEO Termeer says it’s possible the two sides can eventually come to terms.
Sanofi-Aventis made a formal offer to acquire Genzyme for $69 per share, an offer that was unanimously rejected by Genzyme’s board of directors as unrealistic and opportunistic. Read More Here
Biotech Industry Market Cap: $335.12 billion (up 3.3 percent for the week ending 9/3/10)
Performance of Select Blue Chip Biotechs |
| COMPANY |
MARKET CAP
($B) |
CHANGE IN
SHARE PRICE (%) |
| Amgen |
$50.71 |
-2.48% |
| Gilead |
$28.53 |
4.58% |
| Celgene |
$24.48 |
2.64% |
| Biogen |
$13.61 |
3.03% |
| Genzyme |
$17.96 |
4.24%
|
Biotech back on a roll
The capital markets had an upbeat feeling heading into the Labor Day holiday weekend. Recent economic data, including a stronger-than-expected labor market report, put investors in an optimistic mood leading them to believe that the economy would not fall back into recession. The Dow Jones Industrial Average closed the week up almost 3 percent and the Nasdaq posted a 3.7 percent gain.
The positive investor environment spilled over to biotech with the Burrill Biotech Select Index jumping 3.2 percent. All the blue-chip biotech companies posted positive numbers except for Amgen, which dropped 2.5 percent. Following several weeks of speculation, Genzyme formally rejected an $18.5 billion takeover offer from Sanofi-Aventis asserting that the bid substantially undervalues the company. The news pushed Genzyme up 4.24 percent. Gilead Sciences closed the week up 4.6 percent. The company reported that it has repurchased approximately $2.2 billion in common stock under a $5 billion stock repurchase program. Celgene said it plans to file a complaint alleging infringement against India's Natco Pharma, which has submitted a request to the FDA for authorization to make and sell generic versions of Celgene's cancer drug Revlimid in the United States. The company’s shares closed the week up 2.6 percent.
| INDEX |
12/31/08 |
12/31/09 |
08/27/10 |
09/03/10 |
% CHANGE (WEEK) |
% CHANGE (YEAR) |
| Burrill Select |
300.33 |
312.47 |
312.26 |
322.39 |
3.24% |
3.17% |
| Burrill Large Cap |
379.7 |
461.85 |
460.38 |
478.71 |
3.98% |
3.65% |
| Burrill Mid-Cap |
139.39 |
166.01 |
161.28 |
164.26 |
1.85% |
-1.05% |
| Burrill Small Cap |
78.35 |
88.12 |
76.59 |
77.58 |
1.29% |
-11.96% |
| Burrill Genomics |
59.69 |
159.87 |
159.42 |
165.28 |
3.68% |
3.38% |
| Burrill BioGreenTech |
- |
100.00 |
119.61 |
123.38 |
3.15% |
23.38% |
| Burrill Diagnostics |
138.3 |
147.96 |
124.41 |
128.12 |
2.98% |
-13.41% |
| Burrill Personalized Medicine |
79.63 |
91.71 |
83.11 |
84.83 |
2.07% |
-7.50% |
| Canadian Biotech |
32.52 |
40.35 |
47.82 |
48.83 |
2.11% |
21.02% |
| NASDAQ |
1577.03 |
2269.15 |
2153.63 |
2233.75 |
3.72% |
-1.56% |
| DJIA |
8776.39 |
10428.05 |
10150.95 |
10447.93 |
2.93% |
0.19% |
| Amex Biotech |
647.15 |
941.92 |
1072.49 |
1122.67 |
4.68% |
19.19% |
| Amex Pharmaceutical |
272.84 |
309.21 |
286.87 |
293.90 |
2.45% |
-4.95% |
Takeda Signs On to Back Contrave
Court overturns Obama Administration guidelines.
Japan's Takeda is placing summer’s second major bet on an obesity drug with a $50 million investment in Orexigen's Contrave, a combination drug meant to help people tackle the biology and behaviors behind overeating. Payments of more than $1 billion await Orexigen if it hits unspecified regulatory and sales-based milestones in the United States, Canada, and Mexico, the countries covered by its new deal with Takeda. Read More Here
Roche Plans Cost-Cutting as It Feels Pressure from Reform, Delays, and Failures
The weekly round-up of failed trials, missed targets and other business mishaps.
Swiss pharmaceutical giant Roche, stung by recent setbacks and concerned about tightening healthcare budgets, said it will institute a cost-cutting plan. At the same time, the company, which offered no detail on how deeply it would cut costs or where it would seek savings, said all parts of the organization are undergoing review and analysis and it would have specific measures in place and the potential impact on staffing by year end. Read More Here
Another Specialty Buy for Pfizer
FoldRx acquisiton adds to neuroscience portfolio.
Pfizer has agreed to by FoldRx, a privately held specialty drug developer targeting protein misfolding for an undisclosed initial payment plus milestones. The purchase builds on the drug giant's growing interest in niche drugs, a category it has begun to develop as a potential source of new revenues capable of partially stemming the losses it will incur when Lipitor goes off-patent in 2011. Read More Here
Boon for Biodefense
Cellerant and Achaogen rack up millions in new contracts.
Two small California biotechs, Cellerant and Achaogen, have secured new multi-million dollar federal defense contracts to develop technologies for combating potential bioterrorism threats with clinical stage therapies. Read More Here
USDA and DOE Fund Biofuel Genomics Research
Grants aim to accelerate development of plants better suited for bioenergy production.
Agricultural Secretary Tom Vilsack and Energy Secretary Steven Chu announced $8.9 million in research awards under a joint DOE-USDA Plant Feedstocks Genomics for Bioenergy initiative aimed at improving and accelerating genetic breeding programs to create plants better suited for bioenergy production. The awards are part of efforts to create a domestic fuel industry and reduce dependence on foreign oil. Read More Here
Scientists Find Protein Behind Alzheimer's Plaques
Research suggests new treatments modeled on the cancer drug Gleevec.
Beta-amyloid is believed to be the culprit in Alzheimer's disease. It is a protein that accumulates in the brain and causes nerve cells to weaken and die. But drugs designed to eliminate plaques made of beta-amyloid have a fatal problem in that they need to enter the brain and remove the plaques without attacking healthy brain cells. New research, published in the September 2 issue of the journal Nature, suggests that treatments modeled on the blockbuster cancer drug Gleevec could be a solution. Read More Here
Crossword A Day Does Not Keep Mental Decline Away
Brain exercises may slow loss of cognitive abilities, but speed up dementia later.
People who think exercising their brain will keep them sharp as they age may find they are working against themselves in the long run. New research shows that mentally stimulating activities such as crossword puzzles, reading, and listening to the radio may, at first, slow the decline of thinking skills, but speed up dementia in old age. Read More Here
Commentary: Knowing What You Know
Comparative effectiveness research comes to the FDA – but in a good way – sort of.
Take a breath. There’s some news about the U.S. Food and Drug Administration and comparative effectiveness research. Relax – it’s not what you think (or what the people at Consumer’s Union want). Read More Here
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