I only just saw the PR announcing Hyperiscam had bought "Andromeda Biotech"! -- and ISRAELI scam biotech that runs in the same circles as DRIO and ORMP!...
...Andromeda lays claim to "DiaPep277" -- geez, even the name sounds like a scam! -- which "is a synthetic peptide of 24 amino acids derived from the sequence of the human heat shock protein 60 (Hsp60). The peptide modulates the immune response that leads to autoimmune diabetes by diminishing or blocking the immunological destruction of beta cells."
HAW!!! This is just too good!!! So in 1996 a company called "Peptor" is founded in Israel with 63 MILLION dollars in seed money (note to myself -- start a biotech company).
Then about 20 YEARS ago, they develop this "immunomodulator" and calls it "diapep277." In 2001, they published a paper in Lancet about how it prevents beta cell loss in type 1 diabetics. Lo and behold, in 2002, Aventis pays Peptor 15 MILLION dollars to license the drug for further development and it was described as a "megadeal" by at least one analyst. ONE year later, Aventis RETURNS the drug to Peptor -- no explanation offered but pretty safe to presume they didn't think the drug was worth any further investment.
I will continue this in another post since Yahoo has decided to limit length for some some reason.
I knew it! Pat myself on the back, thank you! I forgot all about HPTX after I posted about its Andromeda takeover and only stumbled over the PR from last fall about Andromeda and its "diapep" being FRAUDULENT and HPTX being taken for 570 MILLION dollars and then writing off 55 MILLION dollars!
And now Horizon shareholders get to foot the bill for a pathetic, effectively one trick pony -- I'm sure they're grateful! Bright side is, likely Horizon will dump HPTX's idiot management!
In 2004, Peptor merges with "DeveloGen" -- a German biotech -- in order to unite "DeveloGen's efforts to develop treatments for obesity and diabetes with Peptor, whose products also target diabetes and other immune system conditions. The merged firm will develop a wide range of drugs to treat metabolic disease."
Just THREE years later, in 2007, Develogen "sells" diapep277 to "Andromeda Biotech Ltd. ("Andromeda"), a newly formed wholly owned subsidiary of Clal Biotechnology." I say "sells" because apparently no money changed hands, Develogen just acquired royalties from "future sales" if the drug was ever commercialized.
In 2009, Teva Pharmaceuticals licenses the drug from Andromeda. Ronny Gal, an ananlyst at Sanford Bernstein estimated " the market for the medicine to be about 50,000 patients a year at a price point of between $5,000 and $10,000 annually. The product is a “nice asset” for Teva, which will probably get 20 percent of sales as a royalty rate."
In June 2010 Teva Pharmaceutical decided to exercise its option to invest in Andromeda Biotech receiving worldwide exclusive marketing rights to DiaPep277. It eventually would invest 170 MILLION dollars in Andromeda and diapep277 development and trials. The drug was even given orphan drug status by the FDA in 2012. It even completed a phase 3 trial in 2013: "Efficacy Study of DiaPep277 in Newly Diagnosed Type 1 Diabetes Patients (DIA-AID)"
Then, in February of 2014, guess what! Andromeda BUYS BACK the rights for a "future payment" of 72 MILLION dollars. Let's see, spend 170 plus million then sell it for a "future" payment of 72 million? What does that tell you?
Explaining the repurchase of rights, "...Clal Biotech's board of directors audit committee says that Andromeda's buying back of the global rights to DiaPep277 from Teva was "important to accelerate the business development and commercialization and the drug that has taken place in recent months."
Yeah, right! Like Teva decides to take a 100 million dollar loss because of all the "business development and commercilization" that had "taken place in recent months." How about, those American idiots are buying ANYTHING remotely biotech, so let's see if we can con them as well as we did Aventis and Teva!
And now, lucky HPTX acquires Andomeda and all rights to diapep277 for the bargain basement price of -- drumroll please -- 20 MILLION dollars!!!
Talk about a t__d rolling downhill! Why so cheap? Well, first, the autoimmune process can begin YEARS before actual clinical detection of diabetes. Now, for clinical symptoms to develop sufficiently to allow diagnosis, around 90% of the beta cells need to be destroyed. Treating with diascam277 might help preserve some of them, but it won't restore dead beta cells, so you're still insulin dependent, and there's no reason to believe that you won't still be subject to all the same problems every other IDDM patient faces. In other words, you might preserve beta cells, but so what? It's too late!
And now you understand why Aventis and Teva and pretty much anyone with an IQ larger than a grapenut, walked away from it. Lucky HPTX, huh?