Seeking Alpha: Post-Tysabri, Will Elan Waste The Windfall?

It was no secret that Biogen Idec (BIIB) wanted to gain 100% control of the successful MS drug Tysabri, but it was likewise no secret that the company had virtually no interest in acquiring its partner Elan (ELN). As a result, Wednesday's announcement that Biogen Idec will buy all rights to Tysabri looks like a win for the company, provided the drug continues to grow.

The question is whether Elan shareholders will really benefit from this deal. Pulling forward the Tysabri revenue stream certainly de-risks part of the story, but now investors have to contend with the question of how management will handle that cash. At this point, I'm not optimistic as the plans laid out by Elan management suggest that they have a much higher opinion of their capabilities than the facts would seem to support.

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Post-Tysabri, Will Elan Waste The Windfall?

Seeking Alpha: AstraZeneca Sprinting To Fix Itself

British drug giant AstraZeneca (AZN) has recently been racing to fix the holes in its pipeline created by several high-profile clinical failures. The question for investors is whether the company is at risk of pulling a Wile E. Coyote and running right off the edge of the cliff. Although AstraZeneca has more work to do to fix the near-term outlook, long-term investors may have a brighter future now than just a few months ago.

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AstraZeneca Sprinting To Fix Itself

Seeking Alpha: Cubist Fills Its Sales Bag And Pipeline With Adolor

Stuck in a trading range for about five years, Cubist Pharmaceuticals (CBST) has had a pretty good year in 2011. The company resolved a patent dispute with Teva Pharmaceuticals (TEVA) on reasonably good terms, got some patent extensions that should further boost its profit potential on Cubicin, and struck marketing deals with Optimer (OPTR) and AstraZeneca (AZN) to make better use of its own sales force. But that's not all that's working in Cubist's favor recently. The company's pipeline has also come along nicely, as the Calixa deal has delivered two promising compounds, one of which is now in late-stage studies.

That said, it has not been all sweetness and light for Cubist. Investors have been troubled by this company's heavy reliance on Cubicin and the inevitable declines that are coming in operating income, to say nothing of the inefficiencies of operating a salesforce with few compounds to sell. Investors have been waiting for Cubist to do a deal or two and now management has done just that – giving the company an additional product to sell and also adding some clinical compounds outside of its core anti-infective space.

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Cubist Fills Its Sales Bag And Pipeline With Adolor

Seeking Alpha: Clinical Data And Forest Labs Agree To Split The Risk

The tug of war between Clinical Data (CLDA) bulls and bears has ended in what has to be called a draw. Flying in the face of the bear argument that Clinical Data's recently-approved depression drug Viibryd is little more than a me-too drug with scant prospects, Forest Labs (FRX), a company that knows more than a little about depression drugs, has agreed to purchase the company for $30 a share in cash and up to $6 more in contingent payments.

Of course, bulls should not be limbering up for an unbridled victory lap either. At $30, the guaranteed part of Forest's bid represents a take-under to the tune of nearly $4 per share. Moreover, if Viibryd really takes the market by storm and becomes a $2 billion or even $3 billion a-year drug, this deal is hardly full and fair compensation.

To read the full piece, please go to:
http://seekingalpha.com/article/254167-clinical-data-and-forest-labs-agree-to-split-the-risk?source=mc_market

Should Investors Take A Chance On Savient?

Savient (Nasdaq:SVNT) shareholders have been on a wild ride of late. While the stock languished for months in the low-to-mid teens as this company navigated the tricky FDA approval process for its gout drug Krystexxa, formal FDA approval sent the stock rocketing up into the low-$20s. Now the roller coaster is taking another swoop down, though, as the company announced that it was unsuccessful in its efforts to auction itself off.

The Deal That Could Have Been
Savient management had made no secret of its intention to try to sell the company upon receiving approval for Kyrstexxa. Although the drug could be quite profitable, Savient has no sales force and no pipeline. That made the decision to seek a sale of the company a quite rational decision on the part of management.

Unfortunately, however rational it might have been, there were no takers - or at least no takers at a price that the board deemed acceptable. Investors will probably never know all of the details of the process, but it was widely thought that both Novartis (NYSE:NVS) and Bristol-Myers Squibb (NYSE:BMY) had some level of interest. Clearly a deal could not be struck, though, and the stock has responded poorly to the news. (For related reading, check out Stocks On Drugs: What It takes To Get High.)

Please click the link for the full article on Savient:
http://stocks.investopedia.com/stock-analysis/2010/Should-Investors-Take-A-Chance-On-Savient-SVNT-NVS-BMY-PFE-MRK1026.aspx

Can Savient Soar On One Specialty Drug?

Getting Food and Drug Administration approval for a new drug is usually a slam-dunk piece of good news for a company. For Savient Pharmaceuticals (Nasdaq:SVNT), though, it is only part of the story. While approval of the company's new gout treatment is absolutely a major positive development for shareholders, the ultimate fate of the company is still up in the air.  (Learn about some of the most profitable drugs of all time in Stocks On Drugs: What It Takes To Get High.)  


A Specialty Drug for a Rare Indication
Although gout is thought of as a disease from yesteryear, it still occurs in the Western world. For whatever reason, there is a modest percentage of gout patients who do not respond to current therapies, and Savient's drug (Krystexxa) could be a new option for them.

Please click on the link below for the complete article:
http://stocks.investopedia.com/stock-analysis/2010/Can-Savient-Soar-On-One-Specialty-Drug-SVNT-NVS-REGN-RDEA-AMGN-RHHBY-BMY0916.aspx