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Pfizer Licenses Athersys Stem Cell Drug: BioBuzz

The pharma giant will develop the drug for inflammatory bowel disease.

CLEVELAND, Ohio (

TheStreet

) --

Pfizer

(PFE) - Get Report

said Monday it has licensed a stem cell therapy for inflammatory bowel disease from

Athersys

(ATHX) - Get Report

.

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.

MultiStem is made from stem cells obtained from the bone marrow of healthy, adult donors.

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Pfizer will pay royalties to Athersys if MultiStem is approved for sale. Athersys retains the rights to develop MultiStem in various other indications.

New Analyst Coverage for BioCryst Pharmaceuticals

Morgan Stanley initiated research coverage on

BioCryst Pharmaceuticals

(BCRX) - Get Report

Monday with an "equal weight" rating.

"We see potential for near-term upside from government peramivir orders (IV seasonal and pandemic flu drug) over the next 12 months, but have less insight into the success of the drug’s Phase III trial in flu, which is critical for long-term commercial success beyond the current pandemic. Government orders or a second H1N1 virus peak (many experts expect) could create short-term stock momentum, but sustainable upside will depend on Phase 3 seasonal flu trials (data 2011), leaving us with an equal weight rating," writes analyst Steve Harr.

Morgan Stanley was the lead investment bank on BioCryst's recent follow-on stock offering.

-- Reported by Adam Feuerstein in Boston

Adam Feuerstein writes regularly for TheStreet.com. In keeping with TSC's editorial policy, he doesn't own or short individual stocks, although he owns stock in TheStreet.com. He also doesn't invest in hedge funds or other private investment partnerships. Feuerstein appreciates your feedback;

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