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Biotech Stock Roundup: Horizon-Raptor Acquisition Deal, Geron Down on Pipeline News

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The biotech sector is in the news for mergers and acquisitions with Horizon announcing that it will be acquiring Raptor . Meanwhile, companies like Geron (GERN - Free Report) and Lexicon (LXRX - Free Report) provided updates on key pipeline candidates.

Recap of the Week’s Most Important Stories

Horizon to Buy Raptor: Mergers and acquisitions in the biotech sector seem to be picking up with Horizon Pharma announcing its intention to acquire Raptor in a deal worth about $800 million. With this acquisition, slated to close in the fourth quarter, Horizon is looking to strengthen its U.S. orphan business and expand the orphan business in Europe and other important markets (Read more: Horizon to Acquire Raptor for $800M, Stock Soars).

Geron Hit by Imetelstat Update: Geron’s shares were down 19.6% on planned internal reviews of initial data from a couple of studies on its sole pipeline candidate, imetelstat. The reviews were conducted by partner Janssen and the companies have decided to drop the lower dose (4.7 mg/kg) of imetelstat being evaluated in the IMbark study in myelofibrosis patients.

Although the higher dose (9.4 mg/kg) will continue being evaluated, Geron said that the interim review showed that an insufficient number of patients met the protocol defined interim criteria. An additional internal review will be conducted in the second quarter of 2017.

Meanwhile, the second study (IMerge) on imetelstat, for myelodysplastic syndromes, will continue unmodified.

Imetelstat’s development path has not exactly been smooth with the candidate being placed on clinical hold in Mar 2014 by the FDA. The hold was subsequently lifted in Oct 2014. Given the company’s dependence on imetelstat, we expect investor focus to remain on future updates on the candidate (Read more: Geron at 52-Week Low on Imetelstat Study Update).

Lexicon Soars on Positive Late-Stage Study Data: Lexicon’s shares shot up on positive data from a late-stage study on the company’s experimental type I diabetes treatment, sotagliflozin. Two more studies for type I diabetes are ongoing with results from the second study expected by year end. Lexicon has a collaboration and license agreement with Sanofi for sotagliflozin. Sanofi expects to move the candidate into late-stage studies for type II diabetes later this year (Read more: Lexicon Hits 52-Week High on Positive Type I Diabetes Data).

No Advisory Panel Meeting for Clovis’ Rucaparib: Investors reacted positively to news that the FDA will not be holding an advisory committee meeting for Clovis’ experimental cancer treatment, rucaparib. Clovis is looking to get rucaparib approved for the treatment of advanced ovarian cancer in patients with deleterious BRCA-mutated tumors inclusive of both germline and somatic BRCA mutations (as detected by an FDA-approved test), and who have been treated with two or more chemotherapies. A response from the agency is expected on Feb 23, 2017 (Read more: Clovis' Rucaparib Not to Face FDA Advisory Panel, Stock Up). Clovis is a Zacks Rank #2 (Buy) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Repros Submits Regulatory Application in EU for Enclomiphene: Repros has started the process of seeking EU approval for its experimental secondary hypogonadism treatment, enclomiphene (Read more: Repros Seeks EU Approval for Secondary Hypogonadism Drug).

Performance

MEDICAL-BIOMED/GENETICS Industry Price Index

The NASDAQ Biotechnology Index declined 0.6% over the last five trading days. Among major biotech stocks, Alexion was up slightly while Biogen (BIIB - Free Report) declined 4.3%. Over the last six months, Amgen was up 17.1% while Gilead (GILD - Free Report) lost 12.9% (See the last biotech stock roundup here: CoLucid Soars on Migraine Data, Dynavax Drug FDA Panel Meeting Cancelled).

What's Next in the Biotech World?

Watch out for the usual pipeline and regulatory updates from biotech companies. Meanwhile, Spectrum’s regulatory application for Qapzola (apaziquone) is scheduled to be reviewed by an FDA advisory panel later today.

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