Isis Pharmaceuticals, Inc. (NASDAQ: ISIS) and Genzyme Corp. (NASDAQ: GENZ) have entered into a major strategic alliance in which Genzyme will develop and commercialize mipomersen. Mipomersen is Isis’ potential blockbuster lipid-lowering treatment for high risk cardiovascular patients that utilizes novel antisense technology. Mipomersen is in Phase III studies.
As part of the strategic relationship, Genzyme will also have preferred access to future Isis drugs for CNS and certain rare diseases. This represents a major score for Isis. Genzyme is taking a stake in the company and partnering with it.
Genzyme will pay Isis $150 million to purchase five million shares of Isis common stock for $30 per share. Genzyme will also pay Isis a $175 million up-front license fee for mipomersen. There’s still more.
In addition to the initial $325 million from the stake and the licensing fee, Isis has the potential to receive significant milestone payments for mipomersen and the two companies will share profits once that mipomersen has been launched. Genzyme and Isis will share mipomersen profits 50/50 when annual worldwide revenues reach $2 billion or more. The profit share begins with a 70/30 Genzyme/Isis split and reaches 50/50 on a sliding scale as annual revenues ramp up to $2 billion.
Mipomersen has been shown in phase 2 trials to reduce cholesterol and other atherogenic lipids more than 40 percent beyond reductions achieved with current standard lipid-lowering drugs, enabling more patients to achieve lipid targets. Hence the potential blockbuster status if this goes as well it seems. Mipomersen’s initial indication will be for patients with familial hypercholesterolemia (FH), with an anticipated filing in 2009.
As Isis had a $1.27 Billion market cap at the close, it mightr not be quite as large of a surprise for the gain. Shares are up over 45% in after-hours trading to $21.27 and the 52-week trading range had been $8.30 to $18.23.
Jon C. Ogg
January 7, 2008
100 Million Americans Are Missing This Crucial Retirement Tool
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.