This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Biotech Stock Mailbag: Discovery Labs

Earth to Capetola: Resign in disgrace and let the board sell the company. You've hurt shareholders enough already.

Carlton A. writes, "Is Micromet (MITI) the next antibody company to be bought out now that Bristol-Myers Squibb (BMY) bought Medarex (MEDX)?"

I received a bunch of emails similar to this one right after Bristol announced its $2.1 billion acquisition of Medarex on July 23.

The thinking goes something like this: Companies like Medarex and Micromet that possess biologic antibody technology are in short supply and in demand by larger drug companies. With Medarex now spoken for, it's more likely that a Bristol competitor makes a takeout play for Micromet.

Sure enough, Micromet's stock price moved slightly higher on the speculation and the company used the new investor interest to raise $70 million in a follow-on stock offering priced Wednesday night.

I don't know if Micromet is, or is not, an imminent takeover candidate. The company owns a novel and interesting antibody technology platform. I wrote about interim data from a phase II study of the company's lead drug blinatumomab in June.

Last March, AstraZeneca (AZN) returned North American rights for blinatumomab to Micromet, although AstraZeneca continued to manufacture the drug for Microment and retained a one-time option to reacquire rights to the drug upon its first regulatory approval.

However, Micromet is reportedly buying back AstraZeneca's remaining option on blinatumomab for $6 million, according to an investor who was briefed by Micromet during meetings this week tied to the follow-on offering. Furthermore, AstraZeneca will no longer manufacture the drug for Micromet, which is now contemplating plans to build its own facility to make the drug.

2 of 5

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs