This Day On The Street
Continue to site
ADVERTISEMENT
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

Bristol Licenses Arthritis Drug: BioBuzz

PRINCETON, N.J. ( TheStreet) -- Bristol-Myers Squibb (BMY - Get Report) acquired worldwide rights to an experimental rheumatoid arthritis drug from privately held Alder Pharmaceuticals, the companies announced Tuesday.

The drug, ALD518, is an injectable monoclonal antibody that targets and blocks the production of IL-6, a molecule that plays role in the inflammation, swelling, pain and destruction of bone joints. The drug has completed a phase IIa study, to date.

ALD518 shares the same mechanism as Roche's rheumatoid arthritis drug Actemra, which is currently under review by the U.S. Food and Drug Administration.

In exchange for worldwide rights to ALD518 for all indications but cancer, Alder receives from Bristol $85 million in cash up front, and is eligible for an additional $764 million in future development and regulatory milestone. Alder will also receive royalties based on future ALD518 sales and Bristol may invest up to $20 million in a possible Alder initial public offering.

Bristol already markets a rheumatoid arthritis drug, Orencia, and has another oral drug in phase II studies, according to BioMedTracker.com

Speaking of oral rheumatoid arthritis drugs, Rigel Pharmaceuticals (RIGL - Get Report) is still seeking a partner for its phase II drug candidate, R788.

Survey the RA Treatment Landscape

Doctors expect to prescribe modest amounts of two new biologic rheumatoid arthritis drugs from Johnson & Johnson (JNJ) and UCB over the next year, which means market share for existing drugs from Amgen (AMGN - Get Report) and Abbott Labs (ABT) should remain relatively protected.

That's headline conclusion from a survey of rheumatoid arthritis doctors published Tuesday by Sanford Bernstein.

The recent launches of J&J's Simponi and UCB's Cimzia are expected to help grow the overall RA treatment market, but market share for each drug is only expected to reach 9% and 7%, respectively over the next 12 months, the Bernstein survey finds.

"Adoption of the new entrants looks to be gradual, consistent with their lack of an established safety profile and challenges with formulary access," the Bernstein report says.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
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!
SYM TRADE IT LAST %CHG
ONXX $0.00 0.00%
ARIA $9.71 0.00%
AMGN $167.91 0.00%
BMY $65.80 0.00%
CELG $118.71 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs