Biotech Daily Review: Bidding War Erupts For Biosite
by Richard Daverman, PhD
Centient Biotech Investor
A bidding war has broken out over Biosite (BSTE). Inverness Medical Innovations (IMA), which already owns 4.9% of Biosite’s outstanding stock, offered $90 for the rest. That trumps an $85 per share bid from Beckman Coulter (BEC), an offer that was made 10 days ago on March 26. At the time, Biosite management pronounced itself in agreement with the merger. Anticipating still higher bidding, investors moved the price of Biosite up over the $90 per share figure offered by Inverness. During the past 12 months, Biosite produced $112 million of EBITDA on revenues of $309 million. Analysts are calling for a 6% increase in revenue in 2007 and 10% in 2008. At $90 per share, Biosite has a market cap of $1.4 billion. Inverness makes pregnancy, fertility and ovulation tests. The news had an effect on each one of the participants. Biosite gained 10%, moving up $8.81 to $93.11. But the other two companies declined: Inverness fell 7%, dropping $2.99 to $41.82, and Beckman Coulter was off 3%, falling $1.80 to $63.51.
Schering-Plough (SGP) announced that the Chinese State Food and Drug Administration approved Pegintron to treat patients with chronic hepatitis B, which is very prevalent in China. There are 120 million chronic carriers of the disease and 330,000 deaths annually, due to complications from hepatitis B. Pegintron, or peginterferon alfa-2b, is approved in the US for hepatitis C, but not for hepatitis B. In China, Schering-Plough has been marketing Pegintron for hepatitis C since 2004, and it has offered Intron for hepatitis B since 1993. Schering-Plough moved 29 cents higher to $25.86.
Crucell (CRXL), the Dutch biotech, received a 1.7 million euro grant from a European commission to develop an avian flu vaccine. The grant was awarded to a consortium of nine universities and companies that are working in the flu. Crucell already has a vaccine for the H9N2 variant of avian flu in clinical trials. Most vaccines target the H5N1 strain, though H7 and H9 subtypes have been infecting people since 1996. Crucell slipped 2 cents lower to $25.73.
Trimeris (TRMS) will further cut its workforce, as Roche (RHHBY) takes over marketing responsibility for Fuzeon, an HIV treatment whose sales have been disappointing. Earlier this year, Trimeris reduced its headcount by 25% to 70. Trimeris has not said how many employees will be let go in the next round, which will be completed by April 15. Trimeris was off by a penny at $6.83.
Biotech ended the trading week with a solid gain (markets will be closed tomorrow for Good Friday). The Centient Biotech 200™ climbed 47 points to 3995, an increase of 1.18%. That puts biotech up almost 2% for the year. The S&P 500 was higher by .30% today, and Nasdaq climbed .51%.
Source: CentientInvestor.com
RELATED READING:
- Biotech Daily Review: Roche Buys BioVeris For $600M
- Biotech Daily Review: Cell Genesys Climbs On GVAX Results
- Biotech Daily Review: Roche Picks Up Antibody Firm For $56.5 Million
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Centient Biotech Investor
A bidding war has broken out over Biosite (BSTE). Inverness Medical Innovations (IMA), which already owns 4.9% of Biosite’s outstanding stock, offered $90 for the rest. That trumps an $85 per share bid from Beckman Coulter (BEC), an offer that was made 10 days ago on March 26. At the time, Biosite management pronounced itself in agreement with the merger. Anticipating still higher bidding, investors moved the price of Biosite up over the $90 per share figure offered by Inverness. During the past 12 months, Biosite produced $112 million of EBITDA on revenues of $309 million. Analysts are calling for a 6% increase in revenue in 2007 and 10% in 2008. At $90 per share, Biosite has a market cap of $1.4 billion. Inverness makes pregnancy, fertility and ovulation tests. The news had an effect on each one of the participants. Biosite gained 10%, moving up $8.81 to $93.11. But the other two companies declined: Inverness fell 7%, dropping $2.99 to $41.82, and Beckman Coulter was off 3%, falling $1.80 to $63.51.
Schering-Plough (SGP) announced that the Chinese State Food and Drug Administration approved Pegintron to treat patients with chronic hepatitis B, which is very prevalent in China. There are 120 million chronic carriers of the disease and 330,000 deaths annually, due to complications from hepatitis B. Pegintron, or peginterferon alfa-2b, is approved in the US for hepatitis C, but not for hepatitis B. In China, Schering-Plough has been marketing Pegintron for hepatitis C since 2004, and it has offered Intron for hepatitis B since 1993. Schering-Plough moved 29 cents higher to $25.86.
Crucell (CRXL), the Dutch biotech, received a 1.7 million euro grant from a European commission to develop an avian flu vaccine. The grant was awarded to a consortium of nine universities and companies that are working in the flu. Crucell already has a vaccine for the H9N2 variant of avian flu in clinical trials. Most vaccines target the H5N1 strain, though H7 and H9 subtypes have been infecting people since 1996. Crucell slipped 2 cents lower to $25.73.
Trimeris (TRMS) will further cut its workforce, as Roche (RHHBY) takes over marketing responsibility for Fuzeon, an HIV treatment whose sales have been disappointing. Earlier this year, Trimeris reduced its headcount by 25% to 70. Trimeris has not said how many employees will be let go in the next round, which will be completed by April 15. Trimeris was off by a penny at $6.83.
Biotech ended the trading week with a solid gain (markets will be closed tomorrow for Good Friday). The Centient Biotech 200™ climbed 47 points to 3995, an increase of 1.18%. That puts biotech up almost 2% for the year. The S&P 500 was higher by .30% today, and Nasdaq climbed .51%.
Source: CentientInvestor.com
RELATED READING:
- Biotech Daily Review: Roche Buys BioVeris For $600M
- Biotech Daily Review: Cell Genesys Climbs On GVAX Results
- Biotech Daily Review: Roche Picks Up Antibody Firm For $56.5 Million
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6:08 PM
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