ISIS Pharmaceuticals Inc. (NASDAQ:ISIS) recently added two new drugs, FGFR4Rx and STAT3Rx, to its development pipeline. FGFR4Rx is designed to treat obesity by increasing metabolism, mainly by increasing lipid and fat burning. FGFR4Rx blocks the production of fibroblast growth factor receptor 4, or FGFR4, in the liver and fat tissue.
According to Sanjay Bhanot, M.D., Ph.D., vice president, Metabolic Disorders and Head of Translational Medicine at Isis Pharmaceutical, preclinical studies of the product demonstrated reductions in body fat, reversal of existing obesity and improved insulin sensitivity, making it a promising drug with an exciting therapeutic profile.
STAT3Rx treats cancer by inhibiting the production of a gene critical for tumor cell growth and survival. STAT3Rx in its preclinical studies demonstrated antitumor activity in animal models of human cancer with an attractive safety profile. STAT3Rx would be evaluated in a variety of cancers where STAT3 is believed to play a key role such as liver cancers and multiple myeloma.
Isis engages in antisense technology, exploiting a drug discovery platform created to generate first-in-class drugs.
Genzyme Corp. (NASDAQ:GENZ) recently soared with news of a confidentiality pact with Sanofi Aventis (NYSE: SNV) that would allow Sanofi to conduct a due diligence as merger talks between the two companies await. The pact will allow Sanofi to access sensitive data related to profit margins, price lists, customer contracts, financial forecasts, among others.
The previous offer by Sanofi was rejected by the company on the basis of undervaluation. The recent offer includes pricing of $69.0 per share or $18.5 billion for all the outstanding shares of the company. Prior to this offer, the reports allude Sanofi’s confidence in a deal with Genzyme for an overall price of about $76 per share, including guaranteed value certificates which depend on future performance. The total consideration would include the cash component and a contingent value right or CVR. The CVR structure provides additional milestone payments to be made to the target company after it meets certain sales or regulatory targets in future. The CVR structure has been a contentious issue between the two companies. The pricing of the deal would emphasize the valuation of Genzyme’s multiple sclerosis drug Campath, known generically as alemtuzumab and to be branded as Lemtrada. The company predicts revenues of Lemtrada to hit $3.5 billion in 2017 and Sanofit forecasts a modest $700 million.
Genzyme focuses on rare genetic disease disorders, renal diseases, orthopaedics, cancer, transplant and immune disease. It operates through four business segments including, Genetic Diseases, Cardiometabolic and Renal, Biosurgery and Hematologic Oncology.
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