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
TheStreet Open House

OncoGenex Slammed on Teva Partnership: BioBuzz

BOTHELL, Wash. (TheStreet) -- Shares of OncoGenex Pharmaceuticals (OGXI) are getting a pre-Christmas spanking Monday after the company essentially gave away its experimental prostate cancer drug to Teva Pharmaceuticals (TEVA).

In exchange for rights to OGX-011, Teva is paying OncoGenex $30 million upfront, of which $10 million is from an equity investment. But OncoGenex has to pay Isis Pharmaceuticals (ISIS) $10 million, which leaves OncoGenex with only $20 million.

Teva is paying for the cost of the phase III studies and will pay OncoGenex royalties on OGX-011 sales ranging from 15% to 25%. But again, OncoGenex owes Isis a mid-single digit royalty on sales, so the former's net royalty is only going to be in the teens.

Teva is a giant in the generic drug business but has no standing whatsoever in the branded cancer drug market. What seems clear is the OncoGenex shopped around OGX-011 but couldn't find any interest amongst potential A-list partners. When the drug was put on sale at a deep discount, Teva snatched it up.

OGX-011 garnered a good deal of buzz last spring after OncoGenex presented promising phase II study results in prostate cancer. The stock traded as high as $40 in August on expectations of a big partnership or an outright acquisition of the company.

The disappointing terms of the Teva deal announced Monday were clearly not what investors were hoping for. OncoGenex shares are down 25% to $22.04 in recent trading.

Incyte Licenses Drug to Eli Lilly

(At 8:18 AM EST)

Incyte (INCY) announced Monday that it has licensed a mid-stage rheumatoid arthritis drug to Eli Lilly (LLY).

Under terms of the agreement, Lilly is paying $90 million upfront to Incyte for development and marketing rights to INCB28050, which is currently in a phase II study for rheumatoid arthritis.

Incyte will also be eligible for an additional $665 million in potential milestone payments from Lilly and double-digit royalties on the drug's global sales, if approved.

The partnership between the two companies encompasses INCB28050 and certain follow-on compounds which may be developed for other autoimmune and anti-inflammatory diseases.

As a result of this transaction, Lilly expects to incur a charge to earnings in the fourth quarter of approximately 5 cents per share. The company reconfirmed its full-year 2009 earnings guidance of $3.90 to $4.00 per share on a reported basis, or $4.30 to $4.40 per share on a pro forma basis.

INCB28050 is an oral drug that inhibits JAK1 and JAK2 -- two enzymes thought to play a role in the course of rheumatoid arthritis and other inflammatory/autoimmune diseases.

Incyte's lead JAK inhibitor, INCB18424, is in Phase III development for myelofibrosis.

Pfizer Licenses Athersys Stem-Cell Drug

(At 6:46 AM EST)

Pfizer (PFE) said Monday it has licensed a stem cell therapy for inflammatory bowel disease from Athersys (ATHX).

Athersys will received $6 million upfront from Pfizer and is eligible for another $105 million in future milestone payments. Pfizer is paying the costs to develop the stem cell therapy, known as MultiStem, for inflammatory bowel disease.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
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 17,067.56 -30.89 -0.18%
S&P 500 2,002.28 -1.09 -0.05%
NASDAQ 4,598.1880 +17.9170 0.39%

Brokerage Partners

Rates from Bankrate.com

  • 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