Wednesday's Health Winners & Losers

Biotech pair-ups debuted assorted news on Wednesday, and among those launching higher was SurModics(SRDX Quote).

The small-cap health-care diagnostics company bounded $7.18, or 19%, to $44.52, after announcing an agreement with Merck(MRK Quote) for the development and commercialization of the I-vation sustained drug-delivery system with triamcinolone acet in combination with Merck proprietary drug compounds to treat serious retinal diseases.

According to the agreement, Merck will lead and fund development and commercialization, and SurModics will manufacture and supply clinical and commercial products. SurModics will receive an upfront licensing fee of $20 million, royalties on sales, and will be eligible to receive $288 million more in fees and milestones tied to development and regulatory approvals. Merck will also reimburse SurModics for its development activities.

Merck also said Wednesday that the Food and Drug Administration accepted its new-drug application for Isentress, for treatment of HIV-1 infection in patients for whom antiretroviral therapy isn't effective.

The company said the FDA granted the drug priority review status and that it expects action from the regulatory agency by mid-October. Meanwhile, it's also filing with regulatory agencies out of the U.S. as well. The Whitehouse Station, N.J.-based company rose $1, or 2%, to $50.12, on Wednesday.

Alnylam Pharmaceuticals (ALNY Quote) said Wednesday it met a milestone in its tie-up with Isis Pharmaceuticals(ISIS Quote), regarding the initiation of IND-enabling studies with an RNAi therapeutics candidate.