shareholders

Biovail focuses on CNS drugs

Maureen Martino — Fri, 13 Jun 2008 12:34:15 -0400

As the battle for Biovail continues, current CEO William Wells emphasized the company's focus on CNS drug development at Goldman Sachs' annual healthcare conference. Biovail is investing $600 million over the next four years for work on epilepsy, multiple sclerosis, and Parkinson's. Wells said the company will "maintain its drug delivery technology but [will seek] to license it or use it for drug development."

Biovail's development plans, however, hardly seem to be the focus these day. Found Eugene Melnyk launched a proxy battle for the company recently and is looking to sweep out its board and senior management. Melnyk has a dissident group of shareholders backing him, while the current management urges shareholders to reject Melnyk's interference. The fight will come to a head at annual shareholder meeting on June 25, when shareholders vote on the company's future management.

- see the CNNMoney article

Report: Pfizer makes counter-offer for Ranbaxy

Maureen Martino — Fri, 13 Jun 2008 10:06:09 -0400

Pfizer may be crashing Daiichi Sankyo's party. Business Standard is reporting that Pfizer is considering a counter-offer for Ranbaxy, India's largest drugmaker. The rumor comes on the heels of the $4.6 billion offer Daiichi made just two days ago. Sources say Pfizer may "make a bid for 41.3 percent of the company from institutions and another 21.2 percent from individual shareholders." None of the companies involved have confirmed the rumors.

So why would Pfizer be interested in Ranbaxy? It turns out that there are plenty of reasons. An acquisition of Ranbaxy would give the world's largest drugmaker a big slice of the hot generic drug market. The other big reason? Lipitor. Ranbaxy is planning to launch a generic version of the $10.1 billion-a-year earner in 2010, and wouldn't it be nice for Pfizer if it could control that bit of competition? There's no word on what Ranbaxy's thoughts are on the deal. Ranbaxy says the deal is already done and that it's too late for Pfizer to make a bid, but this battle may just be getting started.

- read the WSJ report
- here's a Forbes article for more

Invitrogen, Applera agree on $6.7B merger

John Carroll — Thu, 12 Jun 2008 10:54:14 -0400

Two big suppliers to the drug development business are merging. Invitrogen has agreed to acquire all of the shares of Applera's Applied Biosystems in a $6.7 billion cash and stock deal. The Invitrogen/Applera combo--to be called Applied Biosystems--will have $3.5 billion in annual sales and will be based in Carlsbad, CA. The companies say they'll be able to shave $125 million in costs following the merger. In a release, the company said it would hold a major presence in key areas like genetic analysis, proteomics, cell biology and cell systems.

"This transaction combines the industry's premier consumables provider with the industry's premier systems provider to create a world-class biotechnology tools company," said Invitrogen CEO Gregory Lucier. "With this acquisition, we are nearly doubling our consumables business as almost half of Applied Biosystems's revenues are consumable in nature. It also provides significant value creating opportunities for customers, shareholders and employees alike."

- check out the merger release
- read the report from SoCalTech

Sun to Taro: Too late to call off merger

Thu, 29 May 2008 06:59:55 -0400

It's too late to stop now, according the Sun Pharmaceuticals. Yesterday, Taro Pharmaceuticals said it was backing out of a planned merger with Sun because the move was not in the best interest of its shareholders. Taro seems to have a problem with the $10.25 per share offer Sun made for the company.

But Sun has no intention of letting Taro go quietly. The company said that stipulations in the merger agreement prevent Taro from pulling out of the deal. In a letter to Taro's board, Sun's Chairman Dilip Shanghvi didn't mince any words, saying that the company is skeptical of the turn-around that led to Taro's decision to call off the merger. "Taro has only $47 million in cash as of March 31, 2008. This means that, if not for Sun's cash injections of approx $60 million last year, Taro would have virtually negative cash--hardly the 'dramatic' improvement of which Taro has boasted. While Sun has made every effort to fulfill its obligations under the Merger Agreement, Taro has failed to honor its side of the bargain and take all necessary action to consummate the merger. Further, Taro has ignored our attempts to discuss, and put forward to Taro's shareholders, an increase in the merger consideration in order to complete the transaction."

Sun says it will now consider all of its options, including without limitation commencing legal proceedings as to Taro's right to terminate the merger.

- see Sun's release
- here's Shanghvi letter to Taro's board (.pdf)

Related Articles:
Sun, Taro merger called off

Going, going... Trimeris winds down ops

Mon, 12 May 2008 06:59:57 -0400

Faced with a patent fight that has frustrated efforts to find a buyer, Trimeris has begun to hand back out $80 million in cash as it winds down its operations. The Trimeris board has authorized returning $50 million to shareholders by the end of the year, and analysts note that all but 10 workers have been let go. Once brimming with potential, Triangle has put its lab up for lease and spun out its R&D work.

"We believe this is consistent with the goal of returning value to investors," said Martin Mattingly, Trimeris' fourth CEO in a year. Analysts told the News & Observer that the recent moves would likely most benefit the company's large institutional investors. Biotech analyst Sharon Seiler said the company should disappear in about a year.

- check out the report from the News & Observer

Amgen CEO: "I felt real economic pain"

Thu, 08 May 2008 06:59:58 -0400

What do you do when your biggest therapeutic earners are swooning, your stock price is down and analysts have turned scornful? Look for that silver lining. That was Amgen CEO Kevin Sharer's approach yesterday when he was confronted by an angry horde of shareholders at the company's annual meeting. While conceding that last year was 'awful,' the chief executive of one of the biggest biotechs in the world said Amgen was off to a good start in '08. And those troubles the company is facing aren't really all that different from the woes faced by other big drug companies.

It was a tough sell. Even with his income down by 29 percent compared to 2006, steamed shareholders questioned Sharer's $13.2 million in compensation ($19 million according to SEC filings), his driver and car and use of the company plane.

Hey, responded Sharer, his shares are down too. "I felt real economic pain," he told the group. With Amgen shares down 30 percent from the 52-week high and Aranesp sales off by 20 percent, there was plenty of pain to go around the room.

- check out the article from the Los Angeles Times

Biogen squares off against Icahn in board battle

Fri, 18 Apr 2008 06:59:55 -0400

The war between Biogen Idec and Wall Street raider Carl Icahn is heating up. The Boston-based biotech has rejected Icahn's nominees for the board of directors and is putting up a slate of its own candidates. And a spokesperson says it all comes down to Icahn's tunnel vision on selling the company.

"In the end," she tells the Wall Street Journal, "the board decided that Mr. Icahn's slate is pledged to a single-minded agenda to sell the company. Such a singular focus represents a risk to driving future value that would not be in the interest of all shareholders."

Last fall Biogen Idec put itself up on the auction block, only to step back down after failing to get an offer acceptable to the CEO and the board. Icahn isn't having any of that, though. He's already filed suit over the failed sale and has been hammering Biogen Idec to get back on the sales block.

- read the article in the Wall Street Journal

Related Articles:
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Biogen Idec in play after Icahn makes his move. Biogen report

Struggling VaxGen goes skeletal with cutbacks

Wed, 09 Apr 2008 06:59:56 -0400

With its planned merger involving Raven Biotechnologies on the rocks, a struggling VaxGen is cutting down to a skeletal staff, laying off 70 percent of its remaining 22 employees. Among the departing staffers is CFO Matthew Pfeffer. In a statement the developer said that its immediate future "is quite straightforward: reduce staffing and expenses to reflect the realities of not merging with Raven, continue our efforts to sell the Anthrax vaccine program and manufacturing facility and deal as best we can with our lease obligations, and importantly, reconfigure our board to deal with the future course of the company."

VaxGen has been grappling with the loss of a crucial $877 million contract to supply the U.S. government with an anthrax vaccine. The developer has been steadily paring back staff in the wake of that disaster.

- here's VaxGen's release
- read the story in the San Jose Business Journal

Related Articles:
Shareholders stymie VaxGen, Raven merger
VaxGen shutters program, axes staff in second retrenchment
VaxGen misses federal deadline on anthrax vaccine
US cancels VaxGen's $877M vaccine contract
VaxGen slashes staff--again

Troubled Amgen pays CEO $13.2M in compensation

Wed, 02 Apr 2008 07:59:56 -0400

With its shares plunging and regulators threatening its blockbuster anemia franchise, Amgen CEO Kevin Sharer (photo) nevertheless garnered $13.2 million in compensation last year, according to the AP. Sharer's fortunes waned by a hefty 29 percent, dropping from $18.6 million taken in the halcyon days of 2006. Sharer took home $1.5 million in pay last year (up), $1.5 million in bonuses (down) and stock and options valued at $9.3 million when they were offered (also down). The perks of the job may have softened the blow, though. Sharer's use of a company plane, Amgen car and driver and tax and financial planning services were worth a collective $900,000. Amgen shareholders did a little worse than the CEO. Company shares plunged 35 percent last year.

- read the AFX story

Related Articles:
Amgen--Big Biotech's Stock Report. Report
Amgen CEO touts blockbuster potential of D-mab. Report
Amgen discusses the future with analysts. Report
Amgen in crisis? Not us, says CEO Sharer. Report

Shareholders stymie VaxGen, Raven merger

Fri, 28 Mar 2008 07:59:57 -0400

VaxGen and Raven Biotechnologies are backing out of their proposed merger after "stronger than anticipated opposition" from shareholders. The companies say that while they initially thought shareholders would go for the deal, it became apparent that they'd reject the plan. VaxGen develops drugs for the treatment and prevention of infectious disease, and Raven develops monoclonal antibody (MAb) therapeutics for cancer. Company officials hoped that the merger would put them at the forefront of the market for MAb cancer treatments.

"We are obviously very disappointed that the proposed merger with Raven was not approved by our stockholders," said James P. Panek, VaxGen President and CEO. "...[I]t has become quite clear that there is sufficient opposition, such that this merger will not be approved." The merger rejection is more bad news for VaxGen, which has been through three rounds of layoffs since the federal government canceled its $877 million anthrax vaccine contract.

- check out this release

Related Articles:
Momentum builds for VaxGen, Raven merger. Report
VaxGen slashes staff--again. Report

PDL axes 260 and takes itself off the market

Wed, 05 Mar 2008 06:59:57 -0500

With no "firm" buyout offers coming in, PDL BioPharma has decided to axe 260 workers--on top of the 320 layoffs already announced--and take itself off the market. The latest restructuring round follows the sale of a half billion dollars worth of assets. And after the new pink slips are delivered, PDL will have about 300 workers, a fraction of its peak of 1,100. PDL put itself up for sale last fall after coming under withering fire from investors for its financial performance. To help win back the favor of investors, who drove down the company's share price 28 percent this morning, a four-year low, PDL is considering giving shareholders 50 percent of the royalties coming from approved products.

- see this release
- here's the AP report

Related Articles:
PDL sells off drugs as it counters harsh criticism. Report
PDL BioPharma puts out 'for sale' sign. Report
In last act, PDL chief takes out the axe. Report
PDL chief resigns in wake of investor wrangle. Report
Biotech CEOs face rising fury of angry investors. Report
PDL BioPharma rises on shareholder complaint. Report

Renovo shares plunge even after 'buy' signals

Tue, 04 Mar 2008 06:59:58 -0500

Investors have always had a habit of overreacting to biotech news, but yesterday's mauling of the UK's Renovo may indicate that shareholders are moving to DEFCON 1 panic mode. As we reported, researchers for the company reported mixed data from two trials of its scar reduction therapy. The data were from a series of trials being mounted to demonstrate how patients respond to the drug, and one trial failure could have been explained by dosing levels. An earlier failure was blamed on a bad trial design. And there have been seven trial successes.

Excuses, excuses. That's clearly not what investors--who were calculating that the drug had a chance of becoming a $12 billion mega-blockbuster--were willing to tolerate. Shares plunged even as analysts were issuing "buy" signals.

"Biotech rides on a rollercoaster of perception. When people look at a potential $4 billion market as with Renovo they can get overexcited and the stock surges. It can take just one piece of negative data for it to plunge again. There is no neat metric to tie share prices down to," Ibraheem Mahmood, biotech analyst at Investec, told The Times.

- read the article from The Times

Related Articles:
Best Pharma Stocks of 2007. Report
Worst Pharma Stocks of 2007. Report
Mixed data for Renovo's scarring therapy. Report
Renovo inks $875M deal for scarring drug. Report
Renovo CEO bullish on partnership prospects. Report

Melnyk slams Biovail board, calls for change

Fri, 29 Feb 2008 06:59:58 -0500

Biovail founder--and largest shareholder--Eugene Melnyk (photo) isn't happy with the company's management, and he's going to do something about it. In a scathing letter to shareholders, Melnyk lambastes the current board of directors for, as he says, not helping the company realize the full potential of its drug delivery technology.

After disappointing talks with the current board, Melnyk says he is exploring "various options available to me in connection with my interest in Biovail, including the possibility of joining with a partner or partners to acquire the remaining shares of Biovail, selling all or a portion of my current Biovail shares to a third party, continuing to hold my shares for investment, or seeking changes to the composition of the Board of Directors."

Melnyk stepped down as chairman in June of 2007 as part of a settlement with Canadian regulators who were investigating insider trading allegations linked to his sale of $1.3 billion in Biovail stock between 2002 and 2004. Melnyk currently owns 11 percent of the company's stock.

- read Melnyk's letter
- see this Financial Post article for more

Related Articles:
Biovail drug launch draws feds' scrutiny. Report
Biovail shares sink after FDA schedules review. Report
FDA hands Biovail a non-approval letter. Report
Biovail's Melnyk to step down amid SEC probe. Report

Dara BioSciences goes public in reverse merger

Wed, 13 Feb 2008 06:59:55 -0500

Dara BioSciences has completed a reverse merger with the nearly-defunct Point Therapeutics, taking the company public. In the deal Dara technically became a subsidiary of Point as a preliminary move to changing the combined company's name to Dara BioSciences. Point Therapeutics jettisoned its executive staff and all but two full-time employees after it shuttered a late-stage trial of talabostat for non-small cell lung cancer. Dara's shareholders control 96.4 percent of the combined company's stock.

- see this release
- read the report from MassHighTech

Related Articles:
DARA owners acquire troubled Point Therapeutics. Report
Dara licenses Bayer drugs. Report
More cuts at troubled Point Therapeutics. Report

Nabi explores "strategic alternatives"

Thu, 06 Dec 2007 06:59:56 -0500

Nabi Biopharmaceuticals has approved the repurchase of up to $65 million of the company's outstanding common shares in the open market or in privately negotiated transactions. The company said its pursuing the action in order to benefit shareholders.

What else is it doing to benefit shareholders? Exploring strategic alternatives, according to a release. "These future alternatives may include, but are not limited to, licensing or development arrangements; joint ventures or strategic alliances; the sale or merger of all or part of the company; and additional share repurchase programs or other distributions to our shareholders." Earlier this week the drug developer closed a $185 million sale of its biologics unit to Biotest. Times have been turbulent at Nabi. This year er the company cut 33 jobs and CEO Thomas McLain resigned shortly after reportedly working out a deal to accommodate a hedge fund investor that had been harshly critical of his performance.

- see Nabi's release

Related Articles:
Nabi axes 33 jobs in restructuring. Report
Nabi CEO walks after hedge fund balks. Report
Nabi vows to push ahead with vaccine work. Report
Nabi's StaphVax fails late-stage study for infections. Report
Hedge fund blasts Nabi management, demands sale. Report

Axcan accepts $1.3 billion buyout offer

Thu, 29 Nov 2007 06:59:57 -0500

Canada's Axcan Pharma is being bought out for $1.3 billion by the private equity group TPG Capital. Shareholders will get a 28 percent premium over Wednesday's close while Axcan gains a new owner as it pushes ahead with new gastrointestinal therapies. Just a few weeks ago Axcan inked a deal with Cellerix SL for the rights to Cx401, a mid-stage drug in development for the treatment of perianal fistulas. Axcan finished fiscal 2007 with $349 million in revenue.

"As an independent, private company with strong backing from TPG, we will be able to continue our focus on the development of innovative, high-quality medical products and become an even stronger partner to health professionals in the gastrointestinal arena," said Frank Verwiel, president and CEO of Axcan.

- see this release or more
- check out the AP report on the buyout

Related Article:
Axcan drug flunks Phase III trial. Report

Genzyme lands $345M acquisition of Bioenvision

Tue, 23 Oct 2007 06:59:56 -0400

Genzyme is laying claim to the keys to Bioenvision after winning shareholders' approval of the $345 million buyout. SCO Capital Partners, which owns 13 percent of Bioenvision, had fought the deal, saying that the bid undervalued the company. That argument failed to sway a majority of shareholders, though, who are getting $5.60 a share. Genzyme walks away with all the rights to the cancer drug clofarabine, which it co-developed with Bioenvision.

- take a look at the release
- read the report from the International Herald Tribune

Related Articles:
Bioenvision shareholders shun Genzyme takeover bid. Report
Who's next on the biotech buyout hit list? Report
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Avant, Celldex merge in $115M stock deal

Mon, 22 Oct 2007 06:59:56 -0400

Avant Immunotherapeutics is merging with Celldex Therapeutics in a stock deal valued at $115 million. Celldex shareholders will wind up with a majority of the shares in the merged company, which will have development programs in vaccines and brain cancer immunotherapeutics. The merged company will also have a product on the market--the oral vaccine Rotarix. Celldex is privately held and Avant's shares closed at 55 cents on Friday.

- see this release

Related Articles:
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VaxGen slashes staff--again

Fri, 14 Sep 2007 06:59:58 -0400

Troubled VaxGen is at it again: the company said it will reduce its workforce from 61 to 27 employees in order to lower its monthly cash expenditures used in operating activities to $1.4 million. The layoff includes executive officer Lance Ignon, Vice President of Corporate Affairs. This is the company's third round of layoffs: shortly after VaxGen failed to meet a federal deadline to restart human trials of an anthrax vaccine, the government canceled its $877 million contract.

"Throughout this year we have retained only those resources that management felt could build value for our shareholders, either because they enhanced our ability to complete a strategic transaction or they were required to meet essential business objectives," said James P. Panek, VaxGen's President and CEO. "Based on our understanding of the nature and structure of such potential transactions, we are now able to take this further restructuring action. We remain optimistic about completing a strategic transaction and are in various stages of discussions with a variety of companies."

- check out the release from VaxGen

Related Articles:
VaxGen shutters program, axes staff in second retrenchment. Report
VaxGen misses federal deadline on anthrax vaccine. Report
US cancels VaxGen's $877M vaccine contract. Report

ALSO NOTED: Pfizer's Lipitor patent request rejected; Spherix sells InfoSpherix; and much more...

Fri, 17 Aug 2007 06:59:50 -0400

> Pfizer's request for a reissued Lipitor patent was stamped "Rejected" by the U.S. Patent and Trademark Office--but the decision is only preliminary, so the drug maker can still hope for extended exclusivity on the cholesterol drug. FiercePharma

> Spherix's shareholders approved the sale of the company's InfoSpherix subsidiary to The Active Network for $17 million in cash. Release

> They weren't dishonest, just incompetent--or so says an outside investigator who's been looking into Bayer's Trasylol snafu. FiercePharma

And Finally... Japanese stem cell scientist Shinya Yamanaka conducts his ground-breaking research on lean budget. FierceBioresearcher