Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Roche (RHHBY - Analyst Report) recently entered into a drug discovery collaboration with privately-held RQx Pharmaceuticals, Inc. through its wholly-owned subsidiary, Genentech.

The collaboration is primarily for the discovery and development of novel drug compounds for an undisclosed target.

As per the collaboration agreement, RQx will receive an upfront payment along with being entitled to receive research and development milestone payments for $111 million.

Additionally, RQx will also receive royalties on sales of products resulting from the collaboration.

RQx develops broad-spectrum small molecule antibiotics to combat serious life threatening infections including those caused by multi drug-resistant Gram-negative bacteria.

We note that Genentech is a part of the Pharmaceuticals Division of the Roche group with its primary focus on oncology along with immunology, neuroscience, metabolism and infectious disease.

Roche had inked a global licensing agreement with biotechnology company Afraxis, Inc. in Jan 2013 for developing candidates for an undisclosed novel target.

The licensing agreement provides Roche with exclusive rights to develop and commercialize Afraxis' proprietary compounds on a worldwide basis.

As per the agreement, Afraxis is eligible for an upfront fee along with research, development and commercialization milestone payments totaling $187.5 million.

Roche also obtained approval from the US Food and Drug Administration (FDA) in Jan 2013 for Avastin (bevacizumab) for a new indication in metastatic colorectal cancer (mCRC).

We are positive on the current developments at Roche. Roche carries a Zacks Rank #4 (Sell).

However, other large cap pharma stocks, such as Bayer (BAYRY - Analyst Report), Novo-Nordisk (NVO - Analyst Report) and Eli Lilly and Company (LLY - Analyst Report) currently look attractive with a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%