Medarex, Inc. (NASDAQ: MEDX) has announced that it will receive a milestone payment from Amgen (NASDAQ: AMGN). Unfortunately, Medarex said the amount is for an undisclosed sum for advancing an antibody into human clinical trials. Our experience in these is that if it is a giant sum that it is gladly discussed.
The antibody was developed using Medarex’s UltiMAb® technology and is the fifth UltiMAb-derived antibody in clinical development by Amgen, including two UltiMAb antibodies in Phase II clinical studies. Medarex said that it may also receive future milestone payments and royalties should this product candidate progress through clinical development and to the market.
As the company didn’t disclose the sum it will receive, traders aren’t giving the company any real boost from this. Shares are indicated up 0.5% or so, but the company is still feeling the loss of its metastatic melanoma drug failing to reach the primary endpoint. We have commented on the huge options trading before on this one, but since the metastatic melanoma drug failed the options activity has diminished significantly.
You can also see where its short interest has fallen along with some other active biotech stocks.
Jon C. Ogg
December 18, 2007
Jon Ogg can be reached at [email protected]; he produces the SPECIAL SITUATION newsletter and he does not own securities in the companies he covers.
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