On Friday, Genzyme Corp. (GENZ) presented encouraging four-year follow-up phase II data on alemtuzumab, which is being developed for the treatment of multiple sclerosis (MS). Results showed durable reductions in relapse rate and sustained accumulation of disability even three years after patients received their last course of alemtuzumab.

The company presented these efficacy and safety data at the annual meeting of the European Committee for Treatment and Research in Multiple Sclerosis in Germany. This CAMMS223 study was conducted in early, relapsing-remitting MS patients, who were randomized to receive either alemtuzumab or Pfizer/Serono's (PFE) Rebif.

Patients taking once-yearly cycles of alemtuzumab reduced their risk of relapse by 72% and the risk of sustained accumulation of disability by 73% compared to patients receiving Rebif. Additionally, the annualized relapse rate and disability risk measured from year three to four remained at the same low level observed in prior years of

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Genzyme Corp. (GENZ) said it acquired the worldwide rights of marketing leukemia treatment Campath and two other hematological-cancer drugs from its German partner Bayer for up to $650 million in royalties.

As part of the agreement, Genzyme will be responsible for developing Campath to treat multiple sclerosis (MS). However, Bayer will retain an option to co-promote the drug if it gets approval for MS and the right to commercialize Campath for use in organ transplantation.

After selling the rights of Campath, and blood cancer drugs Flurdara and Leukine to Genzyme, Bayer said it will focus on kidney and liver cancer drug Nexavar.

A Bayer spokesperson said the deal "significantly improves the profitability for two of our key franchises - oncology and MS". The company has generated about 220 million euros ($293.2 million) annually from the three drugs.

On the other hand, the deal will

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– Goldman Sachs (NYSE:GS) and Morgan Stanley (NYSE:MS), the two last major investment banks left standing after the carnage Wall Street, have ended the era of investment banking by changing their status to bank holding companies. The change means the two firms can now create commercial banks that will be able to take deposits.

– The move marks a sea change on Wall Street 75 years since the Glass-Steagall Act that separated them from deposit-taking banks. The Federal Reserve will now take over from the Securities Exchange Commission as regulator of the two banks.

– “The decision marks the end of Wall Street as we have known it,” said William Isaac, a former chairman of the FDIC. “It’s too bad.”

– Concern is growing that Hank Paulson’s vast rescue plan for Wall Street may “crush” the dollar. According to Bloomberg: “The combination of spending $700 billion on soured mortgage-related assets and providing $400 …

First let me preface this entire entry by saying, I don't bemoan the type of work firefighters or police officers do - along with coal miners these are among the toughest jobs in America. That said, I wrote a piece on the bankruptcy in Vallejo [May 7: Vallejo California Votes for Bankruptcy]; Mish over at Mish's Global Economic Trend blog followed up Thursday with a look at the salaries of public workers in the city. He took a look at all the workers who made more than $100K - there were 292 city workers (I don't know out of how many) - but this is only a town of 100K people. Not New York City. Below are charts of the $200-$299K and $180-$199K ranges. Dominated by firefighters (and some policemen). Again, I have no bones with these people being compensated for tough work but ...

After clearing the bogey at S&P 1405 at last in the previous week, the index has now pulled back to that level and for now bounced off it... hence old "resistance" now becomes new "support". It will be interesting to see if this holds but I expect it to do so for now. Some other thoughts As I've said in the weekly round up, the "strong dollar" fantasies have usually lasted 5-10 days or so... it was nearing midnight. With crude north of $120 and the dollar returning to its rightful place as the junk of the world, we might be done already. This happens like clockwork now almost every 6-8 weeks. As I wrote in detail last week, the fundamental issues facing our country do not allow for a stronger dollar... we continue massive deficit spending and we print money like mad to solve our problems. ...

In light of my last post in regards to sector rotation I am beginning a stake in Goldman Sachs (GS). I’ve been waiting for a breakout over $185, which was the March high. We have some serious resistance at the 200 day moving average, $197, but if that breaks – the sky is the relative limit.

I am doing this to create a more balanced approach in the fund, sort of a mini barbell effect. I now have 2 homebuilders and 2 investment banks (Morgan Stanley being the other) – while in total they make up 10% or so of the fund, I need to have “something” working when the market turns to it’s early cycle play. The last few times money “flowed” from commodities to other areas (however short of time frame) the fund really suffered; so this should help to mitigate some of this suffering if we are about …