Mergers and acquisitions were back in the news last week with Auxilium Pharmaceuticals (AUXL) being the target this time around. The company, which is looking to acquire QLT Inc. (QLTI), received a proposal from Endo International plc (ENDP).
Other updates last week include the usual regulatory and pipeline-related news. Gilead remained in the news thanks yet again to its hepatitis C virus (HCV) treatment, Sovaldi. Meanwhile, Amgen continues to progress with its pipeline.
Recap of the Week’s Most Important Stories
1. Auxilium’s shares shot up 44.9% on an acquisition proposal from Endo International plc. Endo is looking to acquire Auxilium in a cash and stock transaction valued at $2.2 billion (read more: Endo Looking to Acquire Auxilium Pharmaceuticals for $2.2B). Auxilium, however, said that Endo’s proposal significantly undervalues the company. Auxilium will be going ahead with its planned acquisition of QLT Inc. (read more: Auxilium Pharmaceuticals Favors QLT Deal Over Endo Bid). Endo will most likely come back with a higher offer.
2. Gilead saw its shares declining slightly on news that its experimental cancer treatment, simtuzumab, failed to achieve the primary endpoint in a mid-stage study. The study was conducted in treatment-naïve advanced pancreatic cancer patients. Shares were also impacted by a report from the CVS Health Research Institute which indicated a plateau and actual downward trend in Sovaldi utilization over the last several months (read more: Gilead Down on Weak Simtuzumab Data and Sovaldi News).
3. Regeneron (REGN) continues to progress with its blockbuster eye drug, Eylea. The company continues to expand the product label successfully with the latest label expansion being approved in Japan. Eylea can now be used in Japan for myopic choroidal neovascularization (read more: Bayer/Regeneron Successfully Expand Eylea Label in Japan). Earlier, Regeneron had announced Breakthrough Therapy designation for Eylea in the U.S. for the treatment of diabetic retinopathy in patients with diabetic macular edema (read more: Regeneron Gets Breakthrough Therapy Status for Eylea).
4. Another company that continues to progress with its pipeline is Amgen (AMGN). Amgen, which has filed for regulatory approval of quite a few candidates (talimogene laherparepvec – cancer, ivabradine – chronic heart failure, evolocumab – high cholesterol) over the last few months, is now seeking approval for another experimental cancer treatment – blinatumomab (read more: Amgen Files Blinatumomab Marketing Application in U.S.).
5. The FDA lifted its clinical hold on another study being conducted with Halozyme’s PEGPH20. With the clinical hold being lifted, patient enrollment in the phase Ib/II study will resume (read more: Halozyme's PEGPH20 Study S1313 Clinical Hold Lifted by FDA).
Performance
Last week, Vertex (VRTX) was the biggest gainer among major biotechs with share price increasing 11.7%.
Alexion (ALXN) was the biggest loser among the big biotechs last week with its shares declining 2.9%.
Gilead was the biggest gainer over the last six months (up 46.23%) with Vertex being a close second (up 42%). Meanwhile, Alexion’s shares were down 0.7% over the last six months.
Overall, the NASDAQ Biotechnology Index gained 0.3% last week (see the last biotech stock roundup here: Avanir Soars on Phase II Data, Orexigen’s Contrave Approved).
| Company | Last Week | Last 6 Months |
| AMGN | 0.97% | 15.62% |
| BIIB | 1.64% | 4.30% |
| GILD | 0.60% | 46.23% |
| CELG | 0.59% | 28.98% |
| REGN | 0.49% | 14.94% |
| ALXN | -2.90% | -0.70% |
| VRTX | 11.70% | 42.00% |
What's Next in the Biotech World?
While nothing specific is lined up later this week, stay tuned for the usual pipeline and regulatory updates. Moreover, with the Treasury taking action to reduce the tax benefits of and if possible, stop corporate tax inversions, companies like AbbVie (ABBV), which is looking to acquire UK-based Shire (SHPG) will remain in focus in the coming weeks.
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