Biotech Daily Review: Schering-Plough Buys Organon For $14.4 B
by Richard Daverman, PhD
Centient Biotech Investor
Schering-Plough (SGP) will pay $14.4 billion to acquire Organon BioSciences NV, the human and animal health business of Dutch chemical company Akzo Nobel (AKZOY). Schering-Plough pointed out that it and Organon have specialties in women’s and animal health, so that it could eventually wring out $500 million in cost savings. Organon produced $5 billion in revenue over the last year, and Schering-Plough said the acquisition would add 10 cents to its earnings in 2008. Schering had $10.6 billion in revenue in the past 12 months. Organon brings with it 5 products in Phase III development and several candidates in Phase II trials. Schering-Plough will move the global headquarters for its animal products division to Boxmeer, the Netherlands, and the center for gynecology and fertility will be at Organon’s facility in Oss, the Netherlands. Organon’s neuroscience research facility in Newhouse, Scotland will also continue to operate. Schering-Plough moved up 10 cents to $23.95, while Akzo Nobel soared $10.02 (16.5%) to $70.83.
Biogen Idec (BIIB) and PDL BioPharma (PDLI) said that daclizumab met its primary endpoint in a Phase II trial for multiple sclerosis. Patients with the relapsing-remitting form of the disease were treated with daclizumab and interferon beta. They showed a significant reduction in the number of new or enlarged gadolinium-contrast-enhancing lesions (Gd-CELs) at week 24. The trial will continue, and daclizumab will begin a test as a monotherapy. Daclizumab is a humanized monoclonal antibody that binds to the IL-2 receptor on activated T cells, inhibiting the binding of IL-2 and the subsequent inflammatory cascade. Roche (RHHBY) markets Zenapax as an anti-rejection drug for organ transplant patients. Biogen Idec gained 79 cents to end at $44.09, and PDL climbed 43 cents to $19.13.
Dyax (DYAX) entered a partnership with Glenmark Pharma S.A. to discover antibodies for targets specified by Glenmark. The goal is to discover drugs that treat cancer and inflammation. Glenmark will fund the research and pay milestones and royalties on any compounds discovered in the research. Dyax slipped a penny lower to $4.01.
Smith & Nephew (SNN) bought a privately owned Swiss orthopedic company called Plus for $889 million in cash plus assumed debt. The Swiss orthopedic company got its start with a cementless hip replacement product. The acquisition will take Smith & Nephew up to fourth place in the global orthopedic reconstruction market, and it will be accretive to earnings starting in 2008. Plus will add new products to Smith & Nephew’s line and give it a larger European sales force. Plus had revenue of $300 million in 2006. Smith & Nephew traded up $1.40 to $60.96.
Merck (MRK) lost a Vioxx case in New Jersey and was assessed a fine of $20 million. The Humeston case was a retrial of an earlier trial that also found for the plaintiffs, but the verdict was vacated by the judge. Merck dropped 32 cents to $44.29.
Amgen (AMGN) opened $1.82 lower, breaking the $60 barrier, as investors continued to react to the prospect of lower Aranesp sales. By the close, Amgen had regained most of its loss and ended the session with a small 18 cent loss at $60.68.
La Jolla Pharma (LJPC) continued its meteoric rise from positive news early last Thursday on Riquent. La Jolla jumped another 30% today, climbing $1.79 to $7.70. It closed last Wednesday at just slightly above $3.
Biotech opened the new week with a gain. The Centient Biotech 200™ rose 15 points to 3838, a rise of .40%. The S&P 500 moved .27% higher and Nasdaq was up by .62%.
Source: CentientInvestor.com
RELATED READING:
- Biotech Weekly Review: Flat Week, No Complaints
- Biotech Daily Review: Amgen Must Post Black Box Warning
- Biotech Daily Review: Hollis-Eden Loses Stockpile Contract For Neumune
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Centient Biotech Investor
Schering-Plough (SGP) will pay $14.4 billion to acquire Organon BioSciences NV, the human and animal health business of Dutch chemical company Akzo Nobel (AKZOY). Schering-Plough pointed out that it and Organon have specialties in women’s and animal health, so that it could eventually wring out $500 million in cost savings. Organon produced $5 billion in revenue over the last year, and Schering-Plough said the acquisition would add 10 cents to its earnings in 2008. Schering had $10.6 billion in revenue in the past 12 months. Organon brings with it 5 products in Phase III development and several candidates in Phase II trials. Schering-Plough will move the global headquarters for its animal products division to Boxmeer, the Netherlands, and the center for gynecology and fertility will be at Organon’s facility in Oss, the Netherlands. Organon’s neuroscience research facility in Newhouse, Scotland will also continue to operate. Schering-Plough moved up 10 cents to $23.95, while Akzo Nobel soared $10.02 (16.5%) to $70.83.
Biogen Idec (BIIB) and PDL BioPharma (PDLI) said that daclizumab met its primary endpoint in a Phase II trial for multiple sclerosis. Patients with the relapsing-remitting form of the disease were treated with daclizumab and interferon beta. They showed a significant reduction in the number of new or enlarged gadolinium-contrast-enhancing lesions (Gd-CELs) at week 24. The trial will continue, and daclizumab will begin a test as a monotherapy. Daclizumab is a humanized monoclonal antibody that binds to the IL-2 receptor on activated T cells, inhibiting the binding of IL-2 and the subsequent inflammatory cascade. Roche (RHHBY) markets Zenapax as an anti-rejection drug for organ transplant patients. Biogen Idec gained 79 cents to end at $44.09, and PDL climbed 43 cents to $19.13.
Dyax (DYAX) entered a partnership with Glenmark Pharma S.A. to discover antibodies for targets specified by Glenmark. The goal is to discover drugs that treat cancer and inflammation. Glenmark will fund the research and pay milestones and royalties on any compounds discovered in the research. Dyax slipped a penny lower to $4.01.
Smith & Nephew (SNN) bought a privately owned Swiss orthopedic company called Plus for $889 million in cash plus assumed debt. The Swiss orthopedic company got its start with a cementless hip replacement product. The acquisition will take Smith & Nephew up to fourth place in the global orthopedic reconstruction market, and it will be accretive to earnings starting in 2008. Plus will add new products to Smith & Nephew’s line and give it a larger European sales force. Plus had revenue of $300 million in 2006. Smith & Nephew traded up $1.40 to $60.96.
Merck (MRK) lost a Vioxx case in New Jersey and was assessed a fine of $20 million. The Humeston case was a retrial of an earlier trial that also found for the plaintiffs, but the verdict was vacated by the judge. Merck dropped 32 cents to $44.29.
Amgen (AMGN) opened $1.82 lower, breaking the $60 barrier, as investors continued to react to the prospect of lower Aranesp sales. By the close, Amgen had regained most of its loss and ended the session with a small 18 cent loss at $60.68.
La Jolla Pharma (LJPC) continued its meteoric rise from positive news early last Thursday on Riquent. La Jolla jumped another 30% today, climbing $1.79 to $7.70. It closed last Wednesday at just slightly above $3.
Biotech opened the new week with a gain. The Centient Biotech 200™ rose 15 points to 3838, a rise of .40%. The S&P 500 moved .27% higher and Nasdaq was up by .62%.
Source: CentientInvestor.com
RELATED READING:
- Biotech Weekly Review: Flat Week, No Complaints
- Biotech Daily Review: Amgen Must Post Black Box Warning
- Biotech Daily Review: Hollis-Eden Loses Stockpile Contract For Neumune
_____________________
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