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AtheroGenics Seeks Chapter 11
AtheroGenics Inc., a pharmaceutical company that had been developing a diabetes drug, said it has consented to the involuntary Chapter 7 petition filed against it on Sept. 15 in federal bankruptcy court, and is seeking to convert the case under Chapter 11 of the U.S. Bankruptcy Code. It said the filing was necessary because of the company's substantial debt, which has created a significant impediment to AtheroGenics' ability to effectively develop its primary drug, AGI-1067, for the treatment of type 2 diabetes. During bankruptcy proceedings, AtheroGenics said it expects to sell the company and/or its key assets. Proceeds will be distributed first to stakeholders, including creditors, so it is not clear whether any of the proceeds will be distributed to shareholders. Dr. Russell M. Medford, the company's president and chief executive, said the company remains “hopeful that AGI-1067 will ultimately continue to be developed.” AtheroGenics had a net loss of $29.2 million, or 74 cents a share, for the 6 months ending June 30.
Lilly to Buy ImClone
Eli Lilly & Co. announced last month that it is acquiring cancer drug manufacturer ImClone for $6.5 billion. The acquisition gives Lilly its first targeted cancer drug, Erbitux, and five additional drugs in clinical development, including a number of biologics. The $6.5 billion purchase price makes ImClone Lilly's largest acquisition to date. In recent weeks, Lilly's stock price has been hit hard by negative news, including increased risk of pancreatitis associated with its diabetes drug Byetta and the delay in U.S. approval of prasugrel. The ImClone purchase seems to be signaling a shift away from riskier primary care blockbuster drugs to the specialty-focused oncology arena, where unmet medical need is greater and the regulatory path to market is more certain. The company's purchase of ImClone comes in the wake of a hostile takeover bid by BristolMyers Squibb, which had a 17% stake in the company. Eli Lilly's offer represents a 51% premium over ImClone's closing stock price on June 30.
GSK Declines to Option Thyroid Drug
GlaxoSmithKline has decided to decline its option to license XL184, Exelixis' late-stage small-molecule oncology drug candidate and four earlier-stage compounds, effectively ending a 6-year research collaboration between the two firms. XL184 is being studied in a phase III trial in patients with medullary thyroid cancer. In an interview, Exelixis president and CEO George Scangos said GSK's decision did not reflect poorly on the company's research and development programs or chances of success with XL184 and the other compounds. “I can speculate that [GSK's decision] on XL184 was largely because of a mechanistic overlap with XL880,” another small-molecule cancer compound from Exilixis that GSK is already developing, he said.
Phenomix, Forest Diabetes Partnership
Phenomix, a privately held biotechnology firm, signed a licensing pact last month with specialty pharmaceutical company Forest Laboratories to develop and commercialize Phenomix's dutogliptin, a dipeptidyl-peptidase-4 inhibitor drug for type 2 diabetes that is now in phase III trials. The deal will provide much-needed financial resources for Phenomix, which recently scrapped a public stock offering, citing market conditions. Forest, meanwhile, is facing impending generic versions of several of its own drugs and badly needs late-stage products. Under terms of the agreement, Forest will pay Phenomix $75 million up front and as much as $265 million in additional milestones. The two companies will develop and commercialize the drug jointly in this country, with both parties equally sharing profits and expenses. Phenomix will promote the product to diabetologists and endocrinologists, while Forest will market it to primary care physicians.
Chattem Launches Updated Dexatrim
Chattem Inc. hopes to increase sales of its Dexatrim weight-loss brand and compete with GlaxoSmithKline's Alli (orlistat) with the recent launch of Dexatrim Max Complex 7, a reformulated version of the over-the-counter dietary supplement. Meanwhile, the European Medicines Agency recently recommended Alli for nonprescription status across the European Union. Complex 7 contains the same ingredients as other Dexatrim products, but also contains “7-Keto,” an ingredient provided by Humanetics, of Eden Prairie, Minn. Humanetics says 7-Keto is a natural metabolite produced from dehydroepiandrosterone (DHEA) in the body.
Reporters and editors from Elsevier's “The Pink Sheet” and “The Tan Sheet” contributed to this column.
AtheroGenics Seeks Chapter 11
AtheroGenics Inc., a pharmaceutical company that had been developing a diabetes drug, said it has consented to the involuntary Chapter 7 petition filed against it on Sept. 15 in federal bankruptcy court, and is seeking to convert the case under Chapter 11 of the U.S. Bankruptcy Code. It said the filing was necessary because of the company's substantial debt, which has created a significant impediment to AtheroGenics' ability to effectively develop its primary drug, AGI-1067, for the treatment of type 2 diabetes. During bankruptcy proceedings, AtheroGenics said it expects to sell the company and/or its key assets. Proceeds will be distributed first to stakeholders, including creditors, so it is not clear whether any of the proceeds will be distributed to shareholders. Dr. Russell M. Medford, the company's president and chief executive, said the company remains “hopeful that AGI-1067 will ultimately continue to be developed.” AtheroGenics had a net loss of $29.2 million, or 74 cents a share, for the 6 months ending June 30.
Lilly to Buy ImClone
Eli Lilly & Co. announced last month that it is acquiring cancer drug manufacturer ImClone for $6.5 billion. The acquisition gives Lilly its first targeted cancer drug, Erbitux, and five additional drugs in clinical development, including a number of biologics. The $6.5 billion purchase price makes ImClone Lilly's largest acquisition to date. In recent weeks, Lilly's stock price has been hit hard by negative news, including increased risk of pancreatitis associated with its diabetes drug Byetta and the delay in U.S. approval of prasugrel. The ImClone purchase seems to be signaling a shift away from riskier primary care blockbuster drugs to the specialty-focused oncology arena, where unmet medical need is greater and the regulatory path to market is more certain. The company's purchase of ImClone comes in the wake of a hostile takeover bid by BristolMyers Squibb, which had a 17% stake in the company. Eli Lilly's offer represents a 51% premium over ImClone's closing stock price on June 30.
GSK Declines to Option Thyroid Drug
GlaxoSmithKline has decided to decline its option to license XL184, Exelixis' late-stage small-molecule oncology drug candidate and four earlier-stage compounds, effectively ending a 6-year research collaboration between the two firms. XL184 is being studied in a phase III trial in patients with medullary thyroid cancer. In an interview, Exelixis president and CEO George Scangos said GSK's decision did not reflect poorly on the company's research and development programs or chances of success with XL184 and the other compounds. “I can speculate that [GSK's decision] on XL184 was largely because of a mechanistic overlap with XL880,” another small-molecule cancer compound from Exilixis that GSK is already developing, he said.
Phenomix, Forest Diabetes Partnership
Phenomix, a privately held biotechnology firm, signed a licensing pact last month with specialty pharmaceutical company Forest Laboratories to develop and commercialize Phenomix's dutogliptin, a dipeptidyl-peptidase-4 inhibitor drug for type 2 diabetes that is now in phase III trials. The deal will provide much-needed financial resources for Phenomix, which recently scrapped a public stock offering, citing market conditions. Forest, meanwhile, is facing impending generic versions of several of its own drugs and badly needs late-stage products. Under terms of the agreement, Forest will pay Phenomix $75 million up front and as much as $265 million in additional milestones. The two companies will develop and commercialize the drug jointly in this country, with both parties equally sharing profits and expenses. Phenomix will promote the product to diabetologists and endocrinologists, while Forest will market it to primary care physicians.
Chattem Launches Updated Dexatrim
Chattem Inc. hopes to increase sales of its Dexatrim weight-loss brand and compete with GlaxoSmithKline's Alli (orlistat) with the recent launch of Dexatrim Max Complex 7, a reformulated version of the over-the-counter dietary supplement. Meanwhile, the European Medicines Agency recently recommended Alli for nonprescription status across the European Union. Complex 7 contains the same ingredients as other Dexatrim products, but also contains “7-Keto,” an ingredient provided by Humanetics, of Eden Prairie, Minn. Humanetics says 7-Keto is a natural metabolite produced from dehydroepiandrosterone (DHEA) in the body.
Reporters and editors from Elsevier's “The Pink Sheet” and “The Tan Sheet” contributed to this column.
AtheroGenics Seeks Chapter 11
AtheroGenics Inc., a pharmaceutical company that had been developing a diabetes drug, said it has consented to the involuntary Chapter 7 petition filed against it on Sept. 15 in federal bankruptcy court, and is seeking to convert the case under Chapter 11 of the U.S. Bankruptcy Code. It said the filing was necessary because of the company's substantial debt, which has created a significant impediment to AtheroGenics' ability to effectively develop its primary drug, AGI-1067, for the treatment of type 2 diabetes. During bankruptcy proceedings, AtheroGenics said it expects to sell the company and/or its key assets. Proceeds will be distributed first to stakeholders, including creditors, so it is not clear whether any of the proceeds will be distributed to shareholders. Dr. Russell M. Medford, the company's president and chief executive, said the company remains “hopeful that AGI-1067 will ultimately continue to be developed.” AtheroGenics had a net loss of $29.2 million, or 74 cents a share, for the 6 months ending June 30.
Lilly to Buy ImClone
Eli Lilly & Co. announced last month that it is acquiring cancer drug manufacturer ImClone for $6.5 billion. The acquisition gives Lilly its first targeted cancer drug, Erbitux, and five additional drugs in clinical development, including a number of biologics. The $6.5 billion purchase price makes ImClone Lilly's largest acquisition to date. In recent weeks, Lilly's stock price has been hit hard by negative news, including increased risk of pancreatitis associated with its diabetes drug Byetta and the delay in U.S. approval of prasugrel. The ImClone purchase seems to be signaling a shift away from riskier primary care blockbuster drugs to the specialty-focused oncology arena, where unmet medical need is greater and the regulatory path to market is more certain. The company's purchase of ImClone comes in the wake of a hostile takeover bid by BristolMyers Squibb, which had a 17% stake in the company. Eli Lilly's offer represents a 51% premium over ImClone's closing stock price on June 30.
GSK Declines to Option Thyroid Drug
GlaxoSmithKline has decided to decline its option to license XL184, Exelixis' late-stage small-molecule oncology drug candidate and four earlier-stage compounds, effectively ending a 6-year research collaboration between the two firms. XL184 is being studied in a phase III trial in patients with medullary thyroid cancer. In an interview, Exelixis president and CEO George Scangos said GSK's decision did not reflect poorly on the company's research and development programs or chances of success with XL184 and the other compounds. “I can speculate that [GSK's decision] on XL184 was largely because of a mechanistic overlap with XL880,” another small-molecule cancer compound from Exilixis that GSK is already developing, he said.
Phenomix, Forest Diabetes Partnership
Phenomix, a privately held biotechnology firm, signed a licensing pact last month with specialty pharmaceutical company Forest Laboratories to develop and commercialize Phenomix's dutogliptin, a dipeptidyl-peptidase-4 inhibitor drug for type 2 diabetes that is now in phase III trials. The deal will provide much-needed financial resources for Phenomix, which recently scrapped a public stock offering, citing market conditions. Forest, meanwhile, is facing impending generic versions of several of its own drugs and badly needs late-stage products. Under terms of the agreement, Forest will pay Phenomix $75 million up front and as much as $265 million in additional milestones. The two companies will develop and commercialize the drug jointly in this country, with both parties equally sharing profits and expenses. Phenomix will promote the product to diabetologists and endocrinologists, while Forest will market it to primary care physicians.
Chattem Launches Updated Dexatrim
Chattem Inc. hopes to increase sales of its Dexatrim weight-loss brand and compete with GlaxoSmithKline's Alli (orlistat) with the recent launch of Dexatrim Max Complex 7, a reformulated version of the over-the-counter dietary supplement. Meanwhile, the European Medicines Agency recently recommended Alli for nonprescription status across the European Union. Complex 7 contains the same ingredients as other Dexatrim products, but also contains “7-Keto,” an ingredient provided by Humanetics, of Eden Prairie, Minn. Humanetics says 7-Keto is a natural metabolite produced from dehydroepiandrosterone (DHEA) in the body.
Reporters and editors from Elsevier's “The Pink Sheet” and “The Tan Sheet” contributed to this column.