INO, company closest to ONCS, rose 300% after its offering in April 2013. ONCS following INO's playbook.
We need to get the news on the trials first and get the stock up to $1. Then a 1:5 reverse split and uplisting make sense. Doing it now would not, as the reverse would have to be 1:15, and the stock would be too illiquid.
If Advaxis could develop a vaccine to restore rotting facial features, Katie Couric would be first in line. Aging hard.
I think electroporation is proven technology at this point. Dr. Kim says the real ino magic is the ability to develop the synthetic vaccine rapidly, he seems to consider electroporation proven tech.
I am not sure that VGX-3100 is a "clear cut binary event" It s important, but different diseases behave differently. Not sure this had much applicalility to malaria or ebola
If they reduce the return, which they are limited in their ability to do, they would tank the stock price and therefore have to mark to market a loss on their brand new investment. Their interest is in keeping the stockprice and payout high.
The MLP structure requires them to pass on a high percentage of the profits. And since Western refiing is now a major shareholder, they will want to pass on the profits to make Western Refinings results look better. The only way to make a return on their investment is to pay out, unless they buy the entire company.
A partnership like the Roche deal could be an excellent bolt-on for Sanofi.
Long-running speculation about the future of Novartis' ($NVS) struggling vaccine business now appears to be nearing an end. One way or another, Novartis CEO Joe Jimenez expects the future of the unit to be settled in the coming months.
Exactly what will happen to the business is still unclear, though. Speaking to the Financial Times ahead of a company investor day, Jimenez revealed Novartis is willing to spend $5 billion on bolt-on acquisitions to turn the vaccine and consumer health units from also-rans into market leaders. In this scenario, Novartis would keep the vaccine unit and try, once again, to build the business it envisaged when it bought Chiron for $5.4 billion in 2006.
However, while Jimenez is willing to spend on the vaccine business, he doubts there is anything to buy. Potential acquisition targets are "embedded" in larger companies, Jimenez said, and buying them would be expensive. If Novartis is unable to grow the business through acquisition, it will push ahead with plans to sell or partner the unit. Even in this scenario, there are multiple possibilities, some of which could see Novartis keep a toehold in the vaccine game.
"I wouldn't rule anything out. We would consider any option that would allow us to participate in the growing of a business that could significantly increase its performance if it were a good financial proposition for the company and if it was right for that business," Jimenez told investors. The CEO listed joint ventures, in which Novartis could hold a significant or minor stake, as possibilities for the struggling units
At a time when its Big Pharma peers have sold noncore assets, Sanofi ($SNY) has diversified, with multibillion-dollar acquisitions of Genzyme and Merial adding biotech and animal health assets, respectively. Now, CEO Chris Viehbacher is looking for smaller, bolt-on deals to boost the vaccine business.
The company's vaccine unit, Sanofi Pasteur, made a string of acquisitions in 2009 and 2010, strengthening in India and Japan while also snapping up a preclinical research technology. At the time, Viehbacher had recently taken over as CEO and was trying to offset losses from generic competition. The scale of the challenge led to Sanofi making some sizable deals--$20 billion for Genzyme, $4 billion for Merial--but it is now looking for smaller takeover targets.
"I'm satisfied with Sanofi's current perimeter. We will keep reinforcing the growth platforms, to the tune of [up to $2.7 billion] per year in acquisitions. But I don't think we should widen this perimeter," Viehbacher told French newspaper Le Figaro. Reuters and AFP picked up and translated the comments. Viehbacher highlighted vaccines, animal health, self-medication, emerging markets and rare diseases as areas in which Sanofi wants to strengthen through acquisition.
Novartis ($NVS) is also looking for assets to boost its flagging vaccine business but this week admitted that the lack of suitable takeover targets means it is more likely to divest the unit. Analysts value the business at around $6 billion, putting it beyond Sanofi's budget. However, Novartis has already shown a willingness to break up the unit--selling blood-transfusion diagnostics assets to Grifols for $1.7 billion--and is open to a range of exit strategies. An outright sale, joint ventures and other deal structures are all possible
Meanwhile, the average Phase I deal jumped 37% sequentially to $54 million, and the mean Phase II payout nearly doubled to $67.3 million. That latter figure is more than a little inflated by AbbVie's ($ABBV) outsized $175 million check to Ablynx, however, and BioMeter points out that, without the outlier, Phase II numbers came in just below those from the previous quarter. Notably, not a dime went to a Phase III upfront last quarter, compared to about $10 million in Q2, and Thau figures the red-hot biotech IPO market is to blame for that, as more and more companies with late-stage programs have found cheery receptions on Wall Street.
While impressive compared to the recent past, all of those deal figures are well below where they were about 5 years ago, Thau said, but the steady uptick in number of transactions is more than enough reason for optimism. Companies with promising science are finding a bullish partnering market for their programs, he said, name-checking MorphoSys and the $92 million cash payment it got from Celgene ($CELG) last quarter, a long-term cancer pact that could pay out $818 million in total.
"That deal stands out as a dramatic example of a relatively early-stage deal with a very large upfront payment," Thau said. "The question is whether that's an outlier or whether that's a trend. Hopefully, it's more the latter than the former."
While the venture capital market remains sluggish, biotechs are signing ever-richer licensing deals with Big Pharma backers, and the average value of upfront payments jumped 37% across the industry last quarter, according to a report, paced by some lucrative deals in the earliest stages of development.
As law firm Morrison & Foerster details in its BioMeter index, the average upfront payment hit $30.4 million in the third quarter, well above Q2's $22.2 million mean. Driving that trend were some high-dollar early-stage tie-ups, and, with 12 transactions on the quarter, preclinical and discovery-stage biotechs were the busiest dealmakers. The average pre-Phase I deal hit $22.3 million, Morrison & Foerster partner and BioMeter editor Stephen Thau said.
"What you're seeing is the fruition of a lot of good science and the recognition that there's value there, no matter how early," Thau told FierceBiotech, pointing to Biogen Idec's ($BIIB) $100 million payout to Isis Pharmaceuticals ($ISIS) in a preclinical neurological partnership.
That said, the uptick in early deals is likely tied to the industry's prolonged VC slump, as companies that struggle to nail down funding rounds are likely to hit the partnering table before they've amassed a lot of leverage, Thau said. That could spell lower valuations when all's said and done, but, in a cash-strapped environment, most drug developers would rather keep studies moving than risk death by fundraising drought, he said.
"In the long term, it's about being able to continue the work and being able to have the resources available to keep the programs going," Thau said. "By doing the deals earlier, you may wind up giving up more of the upside, but I think it's ultimately good for the industry."