On Friday, Avigen Inc. (AVGN) announced that it will be purchased by MediciNova, Inc. (MNOV) for $1.24 per share in either cash or secured convertible notes. The deal has been valued at about $37 million. Approximately $1.19 of the consideration is scheduled be paid to Avigen shareholders upon the closing of the deal. The remaining 5 cents will be paid on June 30, 2010, subject to certain adjustments. Additionally, they will be entitled to a contingent payment right which will enable them to receive certain other payments. The deal is expected to close in the fourth quarter of this year, subject to shareholders' approval. Avigen has been on the lookout for a buyer ever since its lead candidate AV650 -- for the treatment of spasticity associated with multiple sclerosis (MS) -- failed in a mid-stage trial last October. The merger will permit the companies ...

We are pleased with Incyte Corp.’s (INCY) second-quarter results. The company recorded revenue of $0.8 million, an increase of 29% over the same period last year. Quarterly revenue was slightly below Zacks Consensus Estimate of $1 million. Incyte does not have any FDA approved product and primarily derives its revenue from license agreements.

Incyte reported GAAP net loss of $40 million, or $0.41 per share, compared to net loss of $45.6 million, or $0.54 per share, in the year-ago period, in line with Zacks Consensus Estimate. The primary reason for earnings growth is lower operating expenses. During the second quarter, operating expenses fell 18.9% year over year to $33.52 million.

R&D expenses for the quarter were $29 million, down from $38.1 million in the year-ago period. The decline is due to the company’s prioritization of developmental programs. In order to ensure optimum utilization of resources, Incyte is currently

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In May 2009, Johnson & Johnson (JNJ) signed a definitive agreement to acquire Cougar Biotechnology Inc. for $43 per share, or about $893 million. Recently, the acquisition was completed following expiration of the tender offer (20.149 billion shares tendered, representing approximately 95.9% of Cougar stock). J&J expects this deal to dilute 2009 EPS by $0.02-$0.03.

Cougar Biotechnology has no products currently in the market but is developing oncology compounds for the treatment of advanced prostate cancer, breast cancer and multiple myeloma. The company’s lead candidate, abiraterone acetate (CB7630), recently entered the second of two phase III trials for the treatment of advanced prostate cancer.

Phase II efficacy and safety data in both chemotherapy-naïve and chemotherapy-experienced patients with hormone refractory prostate cancer looked compelling. We believe sales of abiraterone acetate could ramp very quickly upon FDA approval, expected as early as late-2010. Cougar is also testing abiraterone acetate for

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On July 8, 2009, biopharmaceutical company Array BioPharma Inc. (ARRY) presented top-line results from two phase I trials for its lead p38 inhibitor ARRY-797. While one of the studies evaluated ARRY-797 in healthy volunteers in a seven-day dose escalation trial, the other one involved evaluating the inhibitor in a 28-day trial in stable rheumatoid arthritis patients taking methotrexate. The latter study compared two doses of ARRY-797 to placebo.

Although a good tolerance level and a pharmacokinetic profile consistent with earlier trials were revealed by preliminary analysis, the company intends to conduct further detailed studies regarding the inhibitor. Complete results are expected to be presented in 2010.

Early stage of drug development programs & cash burn concern us

All the R&D programs of the company are still in a very early stage. The lead candidate, the ARRY-886 MEK inhibitor program, just entered phase II clinical trial. The negative phase II results from its

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