Perhaps even more interesting are the comments on Hepatitis C Virus treatments in light of Biota's US patent approval yesterday which has implications in this area. Regards Kangaroo1
"Surging US Biotech Sector Interest
Interest in the US biotech sector is on the way up. The Nasdaq Biotech Index has surged 39% since August last year, opening up a biotech IPO window in the US.
What is driving the interest in US biotechs? Well for starters in November last year Gilead Sciences made a bid for Pharmasset worth US$11 billion. Why this deal is so stunning is that Pharmasset has just moved into Phase III trials with its lead program in the area of Hepatitis C (HCV). That transaction was completed in January.
Also in January, Bristol-Myers Squibb did not want to be left behind and announced a bid for Inhibitex, which has a mid stage clinical drug candidate in a similar space to the Pharmasset program. BMS paid US$2.5 billion in a deal that was finalised this month.
HCV is a hot area of biotech at the moment. In October last year Roche made a successful bid for Anadys Pharmaceuticals for US$230 million, which is also in the HCV space.
To throw a spanner in the works, on Friday Gilead announced a setback with its just acquired Pharmasset HCV drug candidate. In a subset of patients on the therapy with GS- 7977, six of eight patients had a viral relapse within four weeks after stopping therapy. It is not going to be as clear cut as Gilead had been hoping for. An analyst covering the stock for Deutsche Bank said that whilst it was disappointing it was unlikely to be a disaster scenario, according to BusinessWeek. Gilead's market value fell US$5.9 billion on Friday."
BTA Price at posting:
78.5¢ Sentiment: Hold Disclosure: Held
