font size
Sign inprintPrint
The Burrill Weekly Brief | December 20, 2010

Subscribe to The Burrill Report | Don't forget to join us on Facebook

Editor’s Note:
Editor’s Note: Be sure to check out the newly enhanced Burrill Executive Mindshare site Visit now.

What a Judge's Ruling Means to Healthcare Reform
Podcast: December 20, 2010

On December 13, a Federal judge in Virginia struck down as unconstitutional a key provision of the healthcare reform legislation passed earlier this year. Judge Henry Hudson of the Federal District Court in Richmond said the law's mandate that people get insurance exceeded the powers granted to Congress under the Commerce Clause. We spoke to Tevi Troy, former deputy secretary of the U.S. Department of Health and Human Services in the Bush Administration and a visiting senior fellow at the Hudson Institute, about the ruling, what it means for the future of healthcare reform, and what the decision will do to ongoing efforts to dismantle the legislation. Read More Here

By The Numbers

Ramius' Persistence Pays Off
Cypress Biosciences finally says yes to a many times spurned suitor.

After months of wrangling, Cypress Bioscience finally agreed to be bought by Ramius, one of its majority shareholders. The deal was sealed after Ramius teamed up with Royalty Pharma to offer Cypress shareholders $6.50 per share in cash, valuing the transaction at $255 million. Read More Here

Biotech Industry Market Cap: $375.72 billion (up 3.25 percent for the week ending 12/17/10)

Performance of Select Blue Chip Biotechs

COMPANY
MARKET CAP
($B)
CHANGE IN
SHARE PRICE (%)
Amgen $54.25 6.54%
Gilead $30.19 -1.11%
Celgene $27.89 3.14%
Biogen $16.24 2.78%
Genzyme $18.07 -0.6%

Biotech posts strong gain
The Burrill Biotech Select Index posted a strong 4.1 percent gain this week and is on track to close out the year on a significant high. With just a handful of trading days left in 2010, the index is up 18.6 percent year-to-date. The leading gainer in the group was Exelixis with a 32 percent increase. The company may be an acquisition target, according to reports. Affymetrix posted a 14 percent gain for the week following news that a federal judge had dismissed patent infringement lawsuits brought by its rival Illumina.

For the week, the Dow Jones Industrial Average gained .7 percent, the S&P; 500 added .3 percent, and the Nasdaq Composite Index moved up slightly at .2 percent. It was the third-straight week of gains for the Dow. The Conference Board's index of leading economic indicators in November made its biggest jump in eight months, signaling that the economic recovery should pick up steam early into the New Year.

 

INDEX 12/31/08 12/31/09 12/10/10 12/17/10 % CHANGE (WEEK) % CHANGE (YEAR)
Burrill Select 300.33 312.47 355.87 370.57 4.13% 18.59%
Burrill Large Cap 379.7 461.85 517.12 531.18 2.72% 15.01%
Burrill Mid-Cap 139.39 166.01 216.50 222.19 2.63% 33.84%
Burrill Small Cap 78.35 88.12 91.02 91.88 0.94% 4.27%
Burrill Genomics 59.69 159.87 158.41 159.87 0.92% 0.00%
Burrill BioGreenTech - 100.00 143.39 147.65 2.97% 47.65%
Burrill Diagnostics 138.3 147.96 154.46 158.12 2.37% 6.87%
Burrill Personalized Medicine 79.63 91.71 103.29 106.81 3.41% 16.46%
Canadian Biotech 32.52 40.35 54.58 56.45 3.43% 39.90%
NASDAQ 1577.03 2269.15 2637.54 2642.97 0.21% 16.47%
DJIA 8776.39 10428.05 11410.32 11491.91 0.72% 10.20%
Amex Biotech 647.15 941.92 1181.43 1301.21 10.14% 38.14%
Amex Pharmaceutical 272.84 309.21 302.31 306.23 1.30% -0.96%

Outgoing EMEA Chief Criticizes Pharma's R&D;
European Medicines Agency's Lonngren says research and development efforts yield inadequate results and often fail to target areas of greatest need.

The outgoing chief of the European Medicines Agency delivered some harsh criticism to the pharmaceutical industry saying its annual $85 billion in research and development doesn't get enough bang for its buck and often fails to put enough effort into developing drugs where there is the greatest need for new therapies. Read More Here

Sanofi Taps Former NIH Head to Lead R&D;
Retooling aligns leadership with new development model.

Sanofi-Aventis has named former National Institutes of Health head Elias Zerhouni to replace Marc Cluzel as head of its global research and development efforts in an effort to further advance an aggressive overhaul of its product development engine. Read More Here

FDA to Revoke Avastin's Approval as Breast Cancer Treatment
Off label use will be allowed, but insurance companies likely won't pay for it.

The U.S. Food and Drug Administration says it is recommending removing breast cancer as an indication for the use of Genentech's Avastin from the drug's label because data have failed to demonstrate it is safe and effective for that purpose. Read More Here

Burrill Report Poll:
What do you think of the FDA's decision to revoke approval for Avastin for use in breast cancer? Tell us what you think.

Amgen Drug Slows Cancer's Spread to Bones
Expanded use could significantly boost market.

Amgen's recently approved cancer drug denosumab delayed the spread of prostate cancer to men's bones by an average 4.2 months, stalling the occurrence of fractures, pain, and other skeletal problems according to a new late-stage study that surprised investors and boosted the company's share price. The drug, however, did not improve the length of time men taking it can survive the cancer. Read More Here

Charles River Makes Additional Cuts
Investor pressure inspires planned asset sale.

Clinical research giant Charles River says it will further slash operating costs and unload money-losing assets to placate shareholders who claim the company underperforms its peers and manages its assets badly. Read More Here

Worries Freeze Lilly Melanoma Trial
Trials of tasisulam for other cancers will continue.

Safety concerns at Eli Lilly convinced the company to suspend a late-stage trial of its investigational melanoma treatment, tasisulam, adding to a string of clinical disappointments for the company this year. Read More Here

Intercell Slashes R&D; After Vaccine Failure
The weekly round-up of failed trials, missed targets, and other business mishaps.

Intercell said its experimental patch-based Travelers' Diarrhea vaccine failed to meet efficacy endpoints to protect against enterotoxigenic E. coli mediated diarrheal infections in pivotal, randomized and placebo-controlled efficacy mid- and late-stage studies. The company noted that because it will not receive an expected $52.7 million milestone payment in connection with the program, its year end loss for 2010 will be substantially higher than previously expected. Intercell will reduce R&D; expenses by approximately 40 percent in 2011 compared to 2010 and will realign its organizational structures. Read More Here

Soda Taxes Fall Flat
Modest impacts predicted for the middle class waistline.

Taxes targeting soda and other sugary drinks in the United States' war on obesity would generate plenty of revenue, but fail to slim down people earning high and low incomes, a new study finds. Middle income Americans would lose the most weight of any group, but the results would still be modest at best. Read More Here

Archive

The Life Sciences Delivered to Your Desktop Every Monday Morning


 

Click Here for a FREE subscription to The Burrill Weekly Brief