6 Hot Biotech Acquisition Targets
August 23, 2016
By Mark Terry, BioSpace.com Breaking News Staff
Now that it was announced yesterday that Pfizer was buying Medivation for approximately $14 billion, investors are turning their crystal balls to other biotech companies that might be acquisition targets. Citigroup’s Yigal Nochomovitz and Yang Huang updated their list of the six biotech companies most likely to be targets. Let’s take a look.
Ophthotech
Ophthotech , headquartered in New York and Princeton, New Jersey, focuses on therapies to treat diseases on the back of the eye. In particular, it is working to develop drugs for age-related macular degeneration (AMD). The company’s lead product is Fovista anti-PDGF therapy. It is currently in a Phase III trial in combination with anti-VEGF monotherapy to evaluate the safety and efficacy of the combination therapy to treat newly diagnosed wet AMD patients compared to current monotherapy. Results are expected by the end of this year.
At its recent second-quarter report as of June 30, the company had $325.7 million in cash, cash equivalents, and securities that were available for sale. Its collaboration revenue was $28.2 million for the quarter, compared to $1.6 million for the second quarter in 2015.
Ophthotech is currently trading for $53.01.
Puma Biotechnology
Los Angeles-based Puma Biotechnology focuses on in-licensing drug candidates that are either undergoing or already completed initial clinical testing for cancer. Yesterday the company announced the European Medicines Agency (EMA) had validated its Marketing Authorization Application (MMA) for neratinib as an extended adjuvant treatment of HER2-positive early stage breast cancer that has previously been treated with trastuzumab (Herceptin)-based adjuvant therapy.
At the company’s second-quarter report on Aug. 9, it indicated that it had a net loss applicable to common stock of $66.6 million, or $2.05 per share for the second quarter, compared to a net loss of $64.7 million or $2.01 per share for the same period in 2015.
Puma Biotechnology is currently trading for $56.80.
Lexicon Pharmaceuticals
Based in The Woodlands, Texas, Lexicon Pharmaceuticals , is primarily focused on two drug candidates, LX4211 for type 1 and type 2 diabetes, and Telotristat etiprate (LX1032/LX1606) to treat carcinoid syndrome. On July 18, the EMA accepted the MMA for Telotristat etiprate, and has a PDUFA date of November 30 by the U.S. Food and Drug Administration (FDA).
The company is also expecting topline data from two pivotal Phase III trials and two Phase II trials for sotagliflozin in type 1 diabetes by the end of the year.
Lexicon Pharmaceuticals is currently trading for $15.62.
Ardelyx
Ardelyx , based in Fremont, California, focuses on minimally-systemic, small molecule and polymeric drugs that work in the gastrointestinal (GI) tracts to treat GI and cardio-renal diseases.
At its recent second quarter report, Mike Raab, the company’s president and chief executive officer, said in a statement, “2016 continues to be a momentous year. With the completion of our recently announced $110 million private placement, we have raised net proceeds of over $190 million in 2016. Now that we have strengthened our balance sheet with sufficient capital to support the company through our receipt of critical clinical milestones in 2017, our primary focus is the execution of our late-stage clinical programs and advancement of the company towards commercialization.”
It had three late-stage programs, which are expected to have data announced in 2017. That includes a Phase III trial of tenapanor to treat hyperphosphatemia in ESRD patients on dialysis, RDX227675 in patients with hyperkalemia, and tenapanor for IBSC-C.
Ardelyx is currently trading for $10.09.
Versartis
Versartis , located in Menlo Park, California, is developing somavaratan (VRS-317), a long-acting recombinant human growth hormone, for the treatment of pediatric growth hormone deficiency. It just completed enrollment in the Phase III VELOCITY trial yesterday.
Versartis is currently trading for $13.34.
Ultragenyx Pharmaceuticals
Ultragenyx Pharmaceuticals is headquartered in Novato, California, and focuses on rare and ultra-rare diseases. At its second quarter report on Aug. 8, it indicated a net loss of $56.9 million, or $1.46 per share compared to a net loss for the same period in 2015 of $29.8 million or $0.83 per share. Total operating expenses for the second quarter were $58.1 million compared to $30.1 million for the same quarter in 2015.
“We are advancing and building our pipeline, with recent positive data from our Phase III study of rhGUS in MPS 7, completion of enrollment in two Phase III programs including KRN23 in adult X-linked hypophosphatemia and Ace-ER in GNE myopathy, and entry into a broad partnership with Takeda that provides a source of new product candidates to treat rare genetic diseases,” said Emil Kakkis, chief executive officer and president of the company, in a statement. “We expect continued clinical and regulatory progress, with key milestones across each of our programs anticipated in the next twelve months.”
Ultragenyx is currently trading for $69.52.