Pharmacyclics’ (PCYC) shares shot up 16.9% on rumors that the company is up for sale. Meanwhile, Celgene (CELG) saw the label of its multiple myeloma treatment getting expanded in the U.S. as well as the EU.
Recap of the Week’s Most Important Stories
1. Is Pharmacyclics up for sale? Although the company has not confirmed anything yet, rumors have surfaced that the company is interested in selling itself. Possible suitors include health care giant, Johnson & Johnson as well as Novartis. J&J would be a natural choice considering the company is already collaborating with Pharmacyclics for blood cancer treatment, Imbruvica.
Imbruvica, currently approved for four indications, has multi-billion dollar potential. Pharmacyclics is exploring the potential to expand Imbruvica’s label into solid tumors. The acquisition would also make sense for Novartis – the company has been focusing on core areas of growth which include oncology. However, J&J and Novartis are not the only companies that could possibly be interested in Pharmacyclics.
Pharmacyclics has strategic collaborations with other companies like Amgen (AMGN), AstraZeneca, Bristol-Myers Squibb, Celgene and Roche as it explores the use of Imbruvica as a combination agent and a backbone of therapy for certain blood cancers and solid tumors. With Imbruvica already off to a strong start and showing immense commercial potential, it wouldn’t be surprising to see an acquisition deal being announced by a large cap company eager to have a blockbuster product in its portfolio.
2. Celgene’s multiple myeloma treatment, Revlimid, can now be used in treatment-naïve patients in the U.S. Earlier, the drug was approved for use in multiple myeloma patients who have received at least one prior therapy (read more: Celgene Up on Hematology Drug Revlimid's Label Expansion). Celgene also gained EU approval for the use of Revlimid in previously untreated multiple myeloma patients not eligible for transplant (read more: Celgene Gains on Label Expansion of Revlimid in the EU). This is an important label expansion for the company and increases the patient population.
3. Regeneron (REGN) got some good news with the publication of results from a National Institutes of Health (NIH) sponsored, Diabetic Retinopathy Clinical Research Network comparative effectiveness study in patients with diabetic macular edema. Regeneron’s Eylea showed significant gains in efficacy when compared to both alternative therapies – Avastin and Lucentis (read more: Regeneron's Eylea Tops Diabetic Macular Edema Study). Eylea, which grew 23% in the U.S. in 2014, is expected to grow 25-30% in 2015. The data should help the company strengthen its position in the DME market.
Meanwhile, Amgen's AMG 416 scored well in a phase III head-to-head study with Sensipar for the treatment of secondary hyperparathyroidism (SHPT) in patients with chronic kidney disease (CKD) receiving hemodialysis. AMG 416 was found to be non-inferior to Sensipar.
4. Several companies reported fourth quarter results over the last 5 days including VIVUS (VVUS), United Therapeutics, MannKind, Alkermes (ALKS), BioMarin and Medivation. While Medivation’s earnings soared past expectations, VIVUS’ results were disappointing with weight management drug, Qsymia, putting in a weak performance (read more: VIVUS Q4 Loss Wider than Expected, Qsymia Disappoints). Meanwhile, Alkermes suffered a pipeline setback with the company deciding to drop development of an early-stage pain management candidate (read more: Alkermes Falls on Pipeline News; Q4 Earnings Plunge Y/Y).
Performance
Over the last five trading days, Vertex’s (VRTX) shares were up the most (4.64%) among major biotechs. Celgene recorded the highest gain (31.8%) among major biotechs over the last six months.
Overall, the NASDAQ Biotechnology Index gained 3.1% over the last five trading days (See the last biotech stock roundup here: Achillion Impresses with HCV Data, Regeneron 4Q Results Top Estimates).
| Company | Last Week | Last 6 Months |
| AMGN | 1.48% | 18.35% |
| BIIB | 1.95% | 19.33% |
| GILD | 0.47% | -2.81% |
| CELG | 3.96% | 31.80% |
| REGN | 4.25% | 21.59% |
| ALXN | 2.56% | 8.41% |
| VRTX | 4.64% | 29.51% |
What's Next in the Biotech World?
Several mid-sized and small biotech companies are yet to come out with fourth quarter results.
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