Irvine drug maker Allergan Inc. came up in a recent report from a Credit Suisse First Boston analyst about Pfizer Inc., maker of Viagra and other drugs.
Analyst Catherine Arnold, in a long research note, named Allergan as one of eight specialty drug makers that passed her team’s screening process for potential acquisitions for Pfizer.
Allergan declined comment, citing company policy against commenting on rumors or merger and acquisition activity.
Even though Allergan made the list, Arnold made it clear she thinks that Pfizer should buy fellow big drug makers Wyeth or Amgen Inc. In her note, Arnold argued that a big deal offers the clearest path toward a higher share price for Pfizer, which has a regional sales office in Irvine near John Wayne Airport.
Meanwhile, stock guru Jim Cramer, during an online version of his “Mad Money” lightning round, said he’s sticking by Allergan despite its shares dropping 10% since Feb. 8. The dip started when it came out that the Food and Drug Administration is reviewing the safety of the main ingredient in Botox in the wake of deaths and injuries that some think could be related to the drug.
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Spectrum’s Shrotriya: bone cancer drug approval “can be the foundation for commercial success for Spectrum” |
“I cannot believe how much it’s going down,” Cramer said.
He said he believes Allergan will “surprise on the uptake.”
Cramer is a longtime Allergan fan, saying the company will grow and prosper because of Americans’ vanity.
Analyst: Sell Valeant
As Valeant Pharmaceuticals Inter-national readies to detail a business review of the struggling drug maker later this month, one analyst is urging investors to sell the company’s shares.
Lazard Capital Markets analyst Megan Murphy called 2008 “another transition year” for the Aliso Viejo drug maker in a research report.
Lazard is cautious about Viramidine, Valeant’s hepatitis C liver disease drug candidate that has posted mixed results in earlier trials. Valeant last week said it saw “encouraging” results in a second-phase clinical trial of Viramidine.
But “we do not believe these results, even if positive, would represent a commercial opportunity compelling enough to warrant investment,” Murphy said.
The best-case scenario for Viramidine, she said, would call for about $280 million of yearly worldwide sales for the drug.
Valeant posted $785 million in revenue last year, but has suspended any forecasts for this year in the wake of its planned strategic review.
Analysts expect the drug maker’s revenue to come in at $887 million this year.
Valeant has counted on Viramidine to supplant its fading flagship ribavirin, which has been nipped by generic competition.
The report also briefly mentioned Valeant’s previously announced strategic plan. New Chief Executive J. Michael Pearson, who took over Feb. 1, said the company would examine all aspects of its business after posting weak results.
Murphy said in a later report that she expects the plan to be released this week.
Earlier this month, Valeant said it was selling its Asia-Pacific operations for $37.8 million to Invida Pharmaceutical Holdings Pte. Ltd., a Singaporean drug maker.
Spectrum Gets Cancer Drug OK
Spectrum Pharmaceuticals Inc., an Irvine drug developer, got a market jolt earlier this month when the Food and Drug Administration approved its injectable levoleucovorin cancer drug.
The regulatory approval sent Spectrum shares up 20% on heavy trading March 10. Spectrum had a market value of $80 million at recent check.
The drug is going to be used to treat osteosarcoma, a form of bone cancer.
In a release, Spectrum said it expected to have levoleucovorin commercially available by June.
Chief Executive Rajesh Shrotriya said he believed the drug’s approval “can be the foundation for commercial success for Spectrum.”
Last year, Spectrum hit a bump with satraplatin, an advanced prostate cancer pill it was developing with GPC Biotech AG of Germany. GPC withdrew a new drug application for satraplatin after the FDA decided to delay approval of the drug until overall survival rates were available.
