Facet Shares Rise On Funding, Outlook

NEW YORK (AP) — Shares of development-stage biotechnology company Facet Biotech Corp. rose Tuesday as the company plans on moving its key drug candidate into late-stage studies in 2009 with several years' worth of funding available.

The stock gained 71 cents, or 11 percent, to reach $7.16 in afternoon trading. Shares have traded between $5.86 and $50 since Facet was formed in December. PDL Biopharma Inc. spun off Facet in the fourth quarter of 2008 but still owns royalty rights to current and future products.

The lead drug candidate is daclizumab, aimed at treating multiple sclerosis. It is already approved to prevent rejections in organ transplant patients.

Biogen Idec Inc. is a partner on the multiple sclerosis program. Facet, though, is in the process of restructuring and shifting its focus to cancer therapies.

BMO Capital Markets analyst Jason Zhang boosted his rating on the company for a series of factors, including plans to advance daclizumab for multiple sclerosis into late-stage studies.

"We believe the decision by Biogen Idec and Facet to elevate 'Select' (daclizumab study) from a Phase II to a Phase III is a positive," Zhang said in a note to investors.