PDL BIOPHARMA AND ROCHE

A divorce Over a Drug

PDL BIOPHARMA. (PDLI): Roche will discontinue its agreement to jointly develop and commercialize daclizumab for organ transplant patients on longer-term maintenance therapy. Roche made this decision subsequent to a periodic internal review of its development programs. This decision follows another decision by Roche earlier this year to discontinue its involvement in the co-development of daclizumab for the treatment of asthma. The co-development agreement between PDL and Roche will formally terminate in May 2007.

Comments: Taken at face value, the reasons behind the termination of the agreement as announced by Roche make it favorable for PDL Biopharma. Whether there are other reasons that relate to the product, nobody can know. Guessing in this situation could be misleading. Nothing wrong with the product has been published anywhere and if any exist it would mean that we are being mislead by both firms, which would be unfortunate, but hard to believe. Here is the press release:

READ THE PRESS RELEASE: PDL BioPharma Announces Roche to Discontinue Co-Development of Daclizumab

GOOD NEWS FOR AMYLIN

The European Commission has granted marketing authorization for BYETTA® (exenatide) for the treatment of type 2 diabetes. The approval decision followed a positive opinion adopted September 21, 2006, by the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency. Lilly and Amylin anticipate launching exenatide in Europe in 2007.

Comments: Good news for both companies.

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