Post-holiday updates on licensing agreements, acquisitions and clinical development weren't enough to persuade inert health indices out of the red Monday.
Nataxis Bleichroeder initiated coverage on
with a sell rating and a target price of $5. The firm said it has low confidence that Medivation's lead compound, Dimebon for Alzheimer's disease, will ever make it to market. "But even if it does, and we give the company credit for its Huntington's Disease and prostate cancer programs, our valuation analysis still suggests a $5 price target."
Shares were down $2.65, or 15.1%, at $14.95. The stock is a component of the Nasdaq biotechnology index, which was down 12.5, or 1.5%, at 816.96.
Another component of the index,
, updated guidance for expected interim results from a phase IIb trial for oral vernakalant which is used to maintain normal heart rhythm following termination of atrial fibrillation. The company will now complete and disclose the interim analysis in March of 2008, rather than its prior expectation of the fourth quarter of 2007. It's forecasting that final results will be presented in mid-2008.
The company said it hopes the delay will add about 20% more patients to the interim analysis than originally planned, and more data will be available on patients with longer-term exposure. Cardoime's shares were trading down 86 cents, or 8.2%, at $9.62.
said Monday in an Nov. 19 filing with the
Securities and Exchange Commission
that it entered into an agreement with
and will grant it an exclusive worldwide patent license for the use of its multigene expression technology in pharmaceutical product applications. The agreement includes an initial payment of $500,000, as well as maintenance fees, sublicense fees, milestone payments based on development and commercialization of licensed products and royalties on sales of products covered by the licensed patents.
Metabolix was trading up 98 cents, or 4.5%, at $22.63. Abbott was trading down 67 cents, or 1.2%, at $54.82.
Inverness Medical Innovations
( IMA) said Monday that it will acquire ParadigmHealth in an all-cash deal, with a purchase price of about $230 million, pending approval by ParadigmHealth's shareholders. Paradigm provides care and disease management services for acutely ill and clinically complex patients, including neonatal intensive care and cancer patients. Shares were down $2.34, or 4%, at $56.55.
Another agreement update:
announced today that it and partner
have agreed to terminate development of MAXY-alpha, or a treatment for hepatitis C and hepatitis B virus infections, and to end the agreement under which Maxygen licensed MAXY-alpha to Roche. On Sept. 21, Roche voluntarily placed a hold on the program after it observed in a phase I trial a reduction of efficacy in the majority of patients who received two doses of MAXY-alpha.
The MAXY-alpha program was fully funded by Roche, with no milestone payments expected in 2007 or 2008. Thus Maxygen said it expects no near-term impact on its financials as a result of the termination. All rights to the interferon variant product candidates revert back to Maxygen. Shares were up 6 cents, or 0.9%, at $7.01 on low volume.