I admit that I am a telecom investor, look at my history, but I am making comparisons between what is happening with Softbank/Sprint/CLWR as I continue to hold/accumulate and learn more about the Biopharma Industry.
The CTO is for a reason, and I have speculated and read various possibilities. I thought I would spend some time searching the SEC site and I think I may have uncovered something. Speculation, yes, so if you do not want to hear it stop reading. If you want to let your mind wander, continue reading.
I found that Cadence Pharmaceuticals, Inc. (NASDAQ: CADX) had submitted two CTO filings on 06/06. I never heard of them so I had to do some research and here is what I found:
Cadence Pharmaceuticals currently has a Market Cap of 658.10M. They have 1 approved product (November 2, 2010) which is called OFIRMEV® which is in the pain management category. OFIRMEV® (acetaminophen) is administered via an injection and is indicated for the management of mild to moderate pain; the management of moderate to severe pain with adjunctive opioid analgesics; and the reduction of fever.
I asked, what is OFIRMEV®? I found out that Panadol, which is marketed in Africa, Asia, Europe, Central America, and Australasia, is the most widely available brand of paracetamol, sold in over 80 countries. In North America, paracetamol is sold in generic form (usually labeled as acetaminophen) or under a number of trade names, for instance, Tylenol, Anacin-3, Tempra, Datril, and Ofirmev. While there is brand named paracetamol available in the UK (e.g. Panadol), unbranded or generic paracetamol is more commonly sold. Acamol, a brand name for paracetamol produced by Teva Pharmaceutical Industries in Israel, is one of the most widely used drugs in that country.
Galena and another link to Teva Pharmaceuticals – interesting. I also noticed that Piper Jaffray (company that provides Coverage on Galena) initiated coverage on shares of Cadence Pharmaceuticals on 06/05 - issued a neutral r
Sentiment: Strong Buy
Indeed, Dan and I have discussed this at length some 2 months ago on the possibility of a Gale and Teva partnership. Since we are not insiders and with only some evidence on hand, we asked ourselves if such a corporate joint venture likely to occur? Here are some of my thoughts:
(1) Why would Teva be interested in having a formal arrangement with Gale to conduct clinical trials in Israel and its surrounding regions at its own expenses if Teva has no plans for future joint activities especially if FDA approves NeuVax? We know that NeuVax is likely to be approved and if so, would Teva just let this whole project go by the wayside? Or Teva management will want to manufacture and market NeuVax globally via its own production capabilities and sell NeuVax through its global marketing channels? I tried to answer some of these questions as if I am the Teva management. I came to the conclusion that Teva would like to play a more active roll with NeuVax than conducting clinical trials.
(2) Dr. Frost is a successful multi-billionaire businessperson who owns Opko and he recently invested heavily in RXII which is a spin-off company from Gale which holds a fair number of RXII shares. Dr. Frost is also the Chairman of the Teva Board. Well, with such closely knitted corporate relationships, I will let the readers to consider if Teva is not interested in Gale/NeuVax.
(3) Teva, as we all know, is an essentially a major international generic drug company. It would love to have a branded drug like NeuVax and Abstral within its corporate family, especially that both drugs are fully protected by international patents. Teva has the financial and marketing strength to bring NeuVax to a bWill Teva do it? I will leave that to your own logical conclusion.
December: have read & digested (I believe relatively well) your thoughts & the logic and speculations behind your statements. Personally at a very high level of "speculative agreement" with what you've presented. Went through a very similar set of "possibilities" in discussions with StockWatcher (whose background includes an extensive Finance & Mergers/Acquisitions participation) about two months ago. We began to itemize the numerous "common elements" between Galena and Teva, but did our examination based on the two companies' key personnel and found a significant number of "shared interests" between the parties. All conjecture, but also very interesting . . . Respectfully, Dan.
WOW.............it makes total sense. The potential synergies between the three (Teva/Cadence/Galena) are breath-taking and would create a significant factor/player in the biotech industry. I like where your head is at and how you think. Good job...............
Sentiment: Strong Buy
Galena and another link to Teva Pharmaceuticals – interesting. I also noticed that Piper Jaffray (company that provides Coverage on Galena) initiated coverage on shares of Cadence Pharmaceuticals on 06/05 - issued a neutral rating on the stock. “In our survey of nearly three dozen surgeons, the vast majority polled use a multi-modal approach to post operative pain (i.e., opioids, local analgesics like bupivacaine, non-steroidal anti-inflammatory drugs (NSAIDs) and acetaminophen). Given this backdrop, and the risks related to opioids, it was not surprising to us that just under half of those we polled are already using Ofirmev (albeit still in a minority of patients), and over a third of those polled are planning to use Ofirmev more frequently in the next 6-12 months. Given this feedback, and the fact that Ofirmev is not an opioid and does not have the bleeding risks that hamper NSAIDs, we believe U.S. sales north of $225M by 2015 and peak sales of $450M-$500M are realistic.,” the firm’s analyst wrote. Four equities research analysts have rated the stock with a hold rating and four have assigned a buy rating to the company’s stock. The stock has a consensus rating of Buy and a consensus target price of $7.32.
Sentiment: Strong Buy
So what am I thinking (pure speculation) - Teva is utilizing an American company (Galena Biopharma) to make purchases/licensing deals within the U.S. to get around any “red tape” that the U.S. government might impose on a foreign company. In other words, have Galena do the “dirty work” and then when the time is right (products are launched, interim results on NeuVax® are positive), Teva would simply purchase Galena and get with it components that they are very similar with i.e. Abstral, OFIRMEV®, and NeuVax® (they have been getting familiar with this in Israel)? Perhaps the Shelf Offering could have been filed to help with the licensing/purchase of Cadence Pharmaceuticals … not sure about you, but HUGE upside with Galena Biopharma for me, holding onto this and accumulating at these low prices.
For those who like to speculate, let me know your thoughts about what I posted.
Sentiment: Strong Buy