New Drug Discovery Pact with GVK BIO allows Wyeth to increase its Biotechnical Capacity.

ABOVE: WYE’S Stock Chart.

Biotechnological Products have been emerging rapidly in the US/global  drug market ever since the emergence of Genetech (ticker:DNA) and its break out drugs Rituxan (rituximab) and TNKase (tenecteplase).  Since then, both brandname (ie Pfizer and Merck) as well as large generic pharmaceutical companies have been looking to strategically ally themselves with talented, emerging biotechnological companies.  For more information on emerging biotechnological companies please refer to http://stockmd.wordpress.com/.

Wyeth Pharmaceuticals (WYE) is chiefly involved in creating, developing, producing, distributing, and the sale of drugs, consumer healthcare products as well as animal health products. WYE is segmented into 3 Basic Divisions namely, Pharmaceuticals, Consumer Healthcare, and Animal Health.  

The Drug or Pharmaceutical Division offers human pharmaceuticals, biotechnology agents, vaccines, and nutritional products. Its primary focus are neuroscience therapeutics, gastrointestinal pharmaceuticals, Infectious disease agents, vaccines, musculoskeletal treatements, nutritional products, anti-cancer drugs, hematologic therapeutics, immunological products as well as women’s health care products.  However, its most profitable drug is Effexor, an antidepressant.  Effexor resulted in $3.8 billion in sales in 2005 for Wyeth, this translatesw into an annual growth rate of 1.2 percent.  

Despite WYE’s strength it is notably deficiant in Bio technical drugs and it wishes to beef up its resume in this department.  In fact, WYE has already taken steps before this new relationship with GVK BIO to achieve these ends.  Most notably, Enbrel, the monoclonal antibody that can treat rheumatoid arthritis is currently marketed by Wyeth and Amgen (Nasdaq: AMGN). In addition, WYE has tagged $40 million for investment in Trubion, which has pledged $800 million in hopes of achieving a healthy Bio-technical product line. 

Therefore, Wyeth creating an alliance with GVK BIO, a company with bio-technical capacity as well as the ability to produce more traditional pharmaceutical agents, is competely straightforward and predictable.  WYE’s stock price increased 0.57% on 5/29/2008.  WYE may see increased profitability in the future because of it’s new drug discovery pact with GVK BIO.

Immunomedics, Inc. (Nasdaq: IMMU) – Will Present Data on 4 New Agents in Development

ABOVE: IMMU Stock Chart for the Last 5 days.

May 27, 2008:  Immunomedics, Inc. (Nasdaq: IMMU) announced that it will present data on four clinical studies involving drugs that it has in development at the 2008 Annual Meeting of the American Society of Clinical Oncology (ASCO).

Companies usually do not present negative studies at scientific meetings.  Negative studies are clinical studies or investigations that fail to show any benefit of the drug in question as opposed to the standard treatment.  This finding in general implies that the drug will not prove to be lucrative to the company. 

Therefore, when a company plans to present the results of a new drug that is in clinical trials it implies that the new agent is working as expected and may increase the profitability of the company.

Please Note:  IMMU’s stock has increased in price from 2.3 to 2.65 in the last two trading days, an increase of 15%.

 

 

The following studies/new agents will be presented by IMMU at the 2008 Annual Meeting of the American Society of Clinical Oncology (ASCO):

Anti-CD20-veltuzumab in the treatment of lymphomas (solid blood cancer) and how the treatment success is different from rituximab (a rival, older drug)

131-iodine-labetuzumab (phase II study) as a therapy for colorectal liver metastases (colon cancer that has spread to the liver) as compared to the results of the more traditional treatment i.e. single dose RadioImmunotherapy (RAIT)

The ability to combat diffuse large B-cell lymphoma (a solid blood cancer) with Epratuzumab and rituximab in combination with cyclophosphamide, doxorubicin, vincristine and prednisone chemotherapy (ER-CHOP)

DOTA-conjugated, anti-CD22 IgG, epratuzumab (a novel agent) and Fractionated radioimmunotherapy as therapy for NHL (Non Hodgkin’s Lymphoma, a solid blood cancer).  The results of the new agent will be compared to those of high cumulative doses of 90Y, a more traditional therapy for NHL.

It would be unusual for all of these agents to not show promise.  Why would a company present four failed experimental treatments at a major medical conference?  IMMU should be observed for an increase in stock price and/or an increase in revenues in the future.

Pharmasset, Inc. (Nasdaq: VRUS) – New Drug Under Development for Chronic Hepatitis C (HCV)

 

May 19, 2008 – Pharmasset Announced that it is developing a potential new candidate to combat Chronic Hepatitis C, namely PSI-7851.

VRUS has selected PSI-7851 as a primary development candidate for the treatment of chronic HCV. PSI-7851 is structured to resemble a molecule that usually is important in the reproduction of hepatitis C.   However, PSI-7851, a nucleotide analogue polymerase inhibitor, actually hinders the proliferation of Hepatitis C.

At this point, PSI-7851 is being promoted into Good Laboratory Practice (GLP) animal toxicity studies, which is a necessary step in the process to present an Investigational New Drug (IND) application to the FDA.  PSI-7851 has shown potency in cell culture (i.e. In vitro “Petri dish tests”) that is roughly 15- to 20 times greater than the in vitro potency of R7128, another nucleoside analog polymerase inhibitor of HCV that Pharmasset is testing through a mutually beneficial relationship with Roche.

STOCKMD: Continued Success.

STOCKMD:

We provide Key Information for Both Long and Short Strategies.

Vertex Pharmaceuticals (VRTX):

Since March 13, 2008 when STOCKMD reported that:

Vertex Pharmaceuticals and Tibotec have initiate “ADVANCE”, a Phase 3 Clinical Study with Telaprevir in the Treatment-Naive, Genotype 1 Hepatitis C Patients.

The stock price of Vertex (VRTX) has risen from 15.30 to 27.66 as of May 16, 2008.   (link below)

http://finance.yahoo.com/echarts?s=VRTX#chart1:symbol=vrtx;range=3m;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined

This would have been a Successful Long Investment (Buy Now and Sell Later).

Genetech (DNA) and Biogen (BIIB):

Since April 15, 2008 when we reported the following:

Genentech, Inc. (NYSE: DNA) and Biogen Idec, Inc. (Nasdaq: BIIB) announced that a Phase II/III study of Rituxan(rituximab) (a synthetic antibody effective in the treatment of Non Hodgkin’s Lymphoma) was completed and unfortunately did not prove to be effective in the treatment of primary-progressive multiple sclerosis (PPMS). 

The stock price of DNA has decreased modestly from 74.06 to 70.19.  (link below)

http://finance.yahoo.com/echarts?s=DNA#chart1:symbol=dna;range=3m;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined

This would have been a successful Short Investment (Borrow and Sell Stock Now then Buy Back and Return Stock later).

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