A LUCRATIVE PARTNERSHIP - ARIAD AND MERCK FIGHT CANCER
Friday, July 13th, 2007ARIAD (ARIA) and Merck decided to team up to develop an experimental cancer treatment, “AP23573″ - a new class of cancer small molecules that block mTOR and interfere with growth of cancer cells by starving them. The partnership could be worth more than $1 billion to Ariad, which has been testing the medication. How the market reacted is not important. The important news is that Merck has recognized the fact that mTOR is a credible target and AP23573 is doing the job.
Late-stage clinical development will start soon with the drug targeting metastatic sarcomas. The drug is also being tested for solid tumors and blood-based cancers.
Ariad will receive an initial payment of $75 million and up to $452 million more based on whether certain development goals are met. The deal could reach hundreds of millions in payments in milestone accomplishments, approval and meeting sales’ targets. Ariad will share profit with Merck in the United States and take royalties on the drug sales overseas.
STILL #1 AND #2
GENENTECH (DNA): The firm’s stock is still losing, while the sales, revenues and earnings are continuing to grow in double digits that is doubling. What could happen next. Smart investors will definitely realize that the current price represents a value below the bottom and sooner, or later, a rebound, a big one might occur.
AMGEN (AMGN) decided to take advantage of the capricious negative influence on its stock to authorize a $5 billion in increase in its share repurchase plan. The company said late Thursday it has about $1.5 billion remaining under its previous stock authorization. If you still don’t like my stock, I like it. Who would know better about Amgen than Amgen itself?
SOME MILESTONE NEWS
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The Drug: MEM 3454 is a partial agonist of the nicotinic alpha-7 receptor, a highly specialized receptor found in the central nervous system (CNS). Compounds acting on this receptor could be beneficial in the treatment of Alzheimer’s disease and schizophrenia, as well as other psychiatric and neurological disorders.
Results: Expected in the fourth quarter of 2007.
Partner: Roche.
CELL GENESYS (CEGE) has completed recruitment of over 600 patients into VITAL-1, the first of two ongoing Phase 3 clinical trials of GVAX immunotherapy for prostate cancer.
