Biotech Mega-Deal
Roche (RHHBY) has affirmed its intentions of buying the remaining 44% of Genentech (DNA) that it does not already own for $43.7B or $89 per share, which DNA rejected earlier this summer as undervaluing the company.
A Paradigm Shift for Statin Drugs
AstraZeneca reported results from a large-scale clinical trial dubbed JUPITER, demonstrating that its cholesterol-lowering statin drug Crestor caused a significant decrease in the incidence of cardiovascular events (e.g. heart attacks, strokes, angioplasty procedures) and total mortality rates among individuals with low to normal cholesterol levels. Researchers identified elevated levels of high-sensitivity C-reactive protein (hsCRP) in these patients, which is a marker of inflammation that can be easily detected in blood tests by lab service companies such as Quest Diagnostics (DGX).
The results of the JUPITER trial provide evidence supporting much wider use of statin drugs, but it remains to be seen how much brand versions such as Crestor and Pfizer's (PFE) Lipitor benefit as several generic statin drugs are already on the market (simvastatin, pravastatin, and lovastatin). AstraZeneca plans to file with the FDA in 1H09 to expand the label of Crestor to include the prevention of cardiovascular events.
Analysts Expect Search Deal Between Yahoo! & Microsoft
Most analysts view the late week sell-off in Yahoo! (YHOO) as overdone, based on comments by Microsoft (MSFT) CEO Steve Ballmer that an acquisition of the web portal was off the table in response to comments by YHOO CEO Jerry Yang suggesting the software giant should buy his company. Analysts are projecting a deal for web search only will eventually take place, which would add about $6-$8 to Yahoo's current stock price of around 12 bucks.
$84.99 (11/10/08)
