BIOTECH UNIVERSE
TODAY’S ACTIVITIES
DENDREON (DNDN): Stock slide is caused by a fierce campaign of skepticism, a downgrade by some security firms and a struggle by hedge fund experts to contradict the FDA committee’s opinion, which favors Provenge’s approval. We believe the Committee’s vote is “statistically significant” and it is time to put a safe vaccine in the empty hands of oncologists for hormone refractory prostate cancer that exhausted all available treatments. Yet, it is very difficult to eliminate the fear implanted into investors’ minds by the unyielding negative campaigns that used everything possible to put down the firm and its drug.
PDL BIOPHARMA (PDLI): Stock Soared yesterday. The firm’s largest shareholder’s asked the firm to fire its Chief Executive Mark McDade. It has been reported that McDade has rebuffed the demands.and rejected the directors nominated by Third Point for PDL’s board. A story to be followed ….
MEDIMMUNE (MEDI): The stock soared following a statement by the firm that its board has authorized management to explore a possible sale of the company in order to maximize its value for shareholders. In its statement, MedImmune said that several factors contributed to the board’s decision, including indications that large pharmaceutical companies might be interested in a take over. The company also noted that several shareholders have recently voiced dissatisfaction with the company’s stock price. As a matter of fact, MedImmune has hired Goldman Sachs & Co. and Dewey Ballantine LLP to assist in exploring options. MedImmune will not comment further on the matter until it either enters into a definitive agreement to be acquired or decides that a deal isn’t in the best interests of shareholders.
CELL GENESYS (CEGE): The stock dropped after the firm said it will sell 10.8 million shares and warrants for 2.2 million added shares in a private offering to raise $60 million. The drop has nothing to do with the firm’s prostate cancer immunotherapy GVAX’ potential.