Biotech Analysis

Acadia Climbs 150% on $395M Pimavanserin Deal with Biovail

Shares of Acadia Pharmaceuticals Inc. gained 150 percent in midday trading on Monday after the company unveiled a surprise partnership with Biovail Corp. for North American rights to its lead drug, pimavanserin. The deal may bring Acadia $30 million up front and $365 million in milestone payments, as well as royalties, and the biotech retained ex-North American rights as well as a co-promote option. Investors hadn’t expected to see a pimavanserin partnership until after the drug completes its two ongoing Phase III trials in Parkinson’s disease psychosis.

Pharmaxis Hits the Mark in Phase III Cystic Fibrosis Trial

Pharmaxis Ltd. reported positive results from a Phase III study of Bronchitol in cystic fibrosis patients, one of the largest clinical trials conducted in that disease. Patients treated with Bronchitol had a statistically significant improvement in lung function compared to placebo. Lung function improved at week six and was sustained through to week 26.

WHO not Ready to Declare Full-Blown Pandemic

Officials from the World Health Organization, which reported Monday that the H1N1 swine-origin Influenza A virus has infected 1,025 people worldwide, said they were concerned about the spread of the virus to the Southern Hemisphere – which is entering its winter months, when influenza viruses typically thrive – and countries in Europe and Asia, but is not yet ready to declare a full-blown pandemic. Meanwhile, the FDA and the Federal Trade Commission said they were cracking down on companies selling phony swine flu cures.

Ironwood Getting $40M Up Front in European Linaclotide Deal

Ironwood Pharmaceuticals Inc., of Cambridge, Mass., partnered its constipation drug linaclotide overseas in a deal with Laboratorios Almirall SA in exchange for $40 million up front plus another $15 million in near-term equity. Beyond that, the agreement calls for additional milestones and royalties on product sales, with Ironwood eligible to receive about half the long-term value of the product upon successful commercialization. Linaclotide, which is partnered with Forest Laboratories Inc. in a co-develop U.S. arrangement, is in pivotal testing in chronic constipation and is set to start Phase III trials in irritable bowel syndrome with constipation.

Also in the News:

Arno Therapeutics, Becton Dickinson, Clinical Data, CombinatoRx, Discovery Labs, Fovea, Fujirebio Diagnostics, Haemacure, Inspire, Invitrogen, Kamada, NeoStem, Peregrine Pharmaceuticals, Pulmatrix, Rexahn, SemBioSys Genetics, Sirona Biochem, SuperGen, TransMolecular, Tranzyme Pharma