Human Genome Sciences
( HGSI) were among the best-performing health-related stocks Tuesday, rising 5% after the biopharmaceutical company said it signed a collaboration agreement with
to develop and commercialize Albuferon for chronic hepatitis C and other uses.
As part of the agreement, Human Genome Sciences will receive an up-front payment of $45 million from Novartis. The company is also eligible to receive clinical development, commercial milestone and other payments that could reach as much as $507.5 million during the collaboration. The two companies will co-commercialize Albuferon in the U.S. and will share equally in the costs and profits. Novartis, meanwhile, will be responsible for commercializing Albuferon outside of the U.S. and will pay Human Genome Sciences a royalty that's tied to sales.
"This agreement brings the strengths of a global leader in the pharmaceutical industry to the development and commercialization of Albuferon, a product that could become the best-in-class immunomodulator in treatment regimens for chronic hepatitis C," Human Genome Sciences CEO Thomas Watkins said in a statement. The company plans to begin phase III clinical development of Albuferon by the end of the year. Shares of Human Genome Sciences were trading up 51 cents to $10.70.
fell 5% after the bioprocess and bioscience products company laid out plans to offer $550 million in convertible senior notes due 2026. The Billerica, Mass., company plans to offer initial purchasers a 13-day option to buy another $82.5 million of the notes to cover over-allotments. Millipore expects to use proceeds from the offering to fund part of its $1.4 billion acquisition of
( SERO). The remaining proceeds will be used for working capital and general corporate purposes. Shares of Millipore were recently trading down $3.26 to $65.19.
( KNDL) advanced after Standard & Poor's said it plans to add the companies to its S&P Small-Cap 600 index. PetMed Express will replace
, which is being acquired, after the close of trading on June 12. Kendle International, meanwhile, will replace
( SBSE), which is also being acquired. The acquisition of SBS is still pending final approval. Kendle was recently trading up $1.73, or 5%, to $35.26, while PetMed Express was trading up 78 cents, or 6%, to $13.72.
Other health care volume movers included
, down 67 cents to $15.85;
, down 13 cents to $23.81;
, down 52 cents to $66.96;
, up 52 cents to $17.34;
, down 13 cents to $46.09;
, down 4 cents to $20.34;
, up 8 cents to $33.55;
Johnson & Johnson
, up 58 cents to $60.71;
, down 35 cents to $36.55; and
, down 24 cents to $24.96.