Thursday, December 16, 2010

5 Healthcare Stocks on Watch

Cephalon Inc. (NASDAQ: CEPH) recently announced its strategic alliance with Mesoblast Limited to develop and commercialize novel adult Mesenchymal Precursor Stem Cell (MPC) therapeutics for degenerative conditions of the cardiovascular and central nervous systems.  The degenerative conditions include Congestive Heart Failure, Acute Myocardial Infarction, Parkinson’s disease, and Alzheimer’s disease. The alliance also extends to products for augmenting hematopoietic stem cell transplantation in cancer patients. As per the terms of the agreement between the companies, in exchange for exclusive world-wide rights to commercialize specific products based on Mesoblast’s proprietary adult stem cell technology platform. The company will make an upfront payment to Mesoblast totaling US$130 million (US$30 million upon Mesoblast shareholder approval) and regulatory milestone payments of up to US$1.7 billion.  Mesoblast will be responsible for the conduct and expenses of certain Phase IIa clinical trials and commercial supply of the products. The company will be responsible for all Phase IIb and III clinical trials and subsequent commercialization of the products. Mesoblast will hold all manufacturing rights and will share significantly in the net product sales. Cephalon engages in the discovery, development and commercialization of products in four core therapeutic areas including central nervous system (CNS), pain, oncology and inflammatory disease. Celgene Corporation (NASDAQ: CELG) recently announced the evaluation of its next IMiD compound, pomalidomide in three separate investigational trials of patients with multiple myeloma who were relapsed or refractory after prior treatments including lenalidomide, thalidomide and bortezomib. Celgene Corporation iengages in the discovery, development and commercialization of therapies designed to treat cancer and immune-inflammatory related diseases. Amgen Inc. (NASDAQ: AMGN) recently announced positive top-line results from a Phase 3 trial evaluating XGEVA (denosumab) versus placebo in 1,432 men with castrate-resistant prostate cancer. The trial, identified as the ’147 study, showed that XGEVA significantly improved median bone metastasis-free survival by 4.2 months (HR=0.85, 95 percent CI 0.73-0.98, p=0.03) compared to placebo (primary endpoint), and significantly improved time to first occurrence of bone metastases (secondary endpoint). The overall survival was similar between the XGEVA and placebo groups (secondary endpoint). Amgen is in the business of discovery, development, manufacturing and marketing medicines for grievous illnesses. Biogen Idec Inc. (NASDAQ: BIIB) announced that it provided grants to twelve prestigious universities and medical centers across the country for the 2010-2011 academic year. The grants were awarded through the Biogen Idec MS Clinical Fellowship Program and provided a total of $900,000 to recipients for the placement of clinical MS Fellows. Biogen Idec’s products include AVONEX, RITUXAN, TYSABRI and FUMADERM. Gilead Sciences Inc. (NASDAQ: GILD) recently announced that it has submitted a New Drug Application (NDA) to the U.S. Food and Drug Administration (FDA) for marketing approval of the single-tablet regimen of Truvada (emtricitabine and tenofovir disoproxil fumarate) and Tibotec Pharmaceuticals' investigational non-nucleoside reverse transcriptase inhibitor TMC278 (rilpivirine hydrochloride) for HIV-1 infection in adults. This would be the second product that contains a complete HIV treatment regimen in a single once-daily tablet, if approved. Gilead discovers, develops and commercializes therapeutics and is a biopharmaceutical company. This corporate profile is provided for information purposes only and should not be used as the basis for any investment decision. We are neither licensed nor qualified to provide investment advice. We were not paid, nor do we hold a position in these stocks. We reserve the right to buy or sell CEPH, CELG, AMGN, BIIB and GILD at any time after this post.
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