Healthcare Biz Recap: Dendreon’s SEC Inquiry, Bristol-Myers Squibb Hates Thursday
Two items on Thursday from Human Genome Sciences (NASDAQ:HGSI), as it reports that adoption of a rights plan for short-term shareholders, which will have the term of one year. In addition, the company’s board unanimously calls GlaxoSmithKline’s (NYSE:GSK) unsolicited tender bid ‘inadequate’ and not in the best interests of stockholders.
Patent protection for Bristol-Myers Squibb’s (NYSE:BMY) star performer Plavix ends Thursday after bringing the firm $42.8 billion during the past 15 years. This case is one of 19 drugs that are scheduled to lose protection in the current year, causing it to be known as the Year of Pharmageddon, which might cost the drug industry $38.5 billion. For its part, BMY is now banking on the yet-to-be-approved blood thinner Eliquis to take Plavix’ place.
Investing Insights: Intuit Earnings Cheat Sheet: Profit Climbs on Smooth Quarter.
The roller coaster ride for Rosetta Genomics’ (NASDAQ:ROSG) went on again Thursday, as shares close almost 22 percent down after moving into orbit on Wednesday, following word that ROSG’s lead diagnostic assay will be covered by Medicare. The downturn was likely triggered by the announcement of a direct offering of 632,057 common shares at $3.50.
Pfizer’s (NYSE:PFE) Xalkori shows great potential in the fight against two childhood cancers, and reinforces the increasing ides that the key to fighting tumors is to identify genetic glitches and treat them with targeted drugs. Xalkori has eradicated the cancer in seven of eight kids with a childhood form of lymphoma and in two others with the lethal neuroblastoma nervous system cancer.
The Securities and Exchange Commission opens an inquiry which likely involves lawsuits accusing Dendreon (NASDAQ:DNDN) of misleading investors over its prostate-cancer treatment Provenge. Shares fall after the company’s confirmation of the investigation.
Microcap pharmaceutical developer NovaBay (AMEX:NBY) introduces its Phase II trial of its NVC-422 for viral conjunctivitis, and shares take off. Roth Capital says that not only does it expect positive study results, but also that the shares represent a buying opportunity.
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