Catco Reinsurance Opport... Share Discussion Threads

[graemereid] 26/10/2005 19:34

Well, today's announcement came as a bit of a surprise for me. After all the legal battling and the lack of an out-of-court settlement in the original case, I didn't expect a resolution outwith the courtroom at such a late stage. But here we are and the details look ok for CAT. Time to forge ahead now.

[matthu] 27/9/2005 05:41

Abbott does not seem to be having a lot of success in patent litigation recently ...



Abbott loses patent infringement case against Baxter
A US court has ruled that Baxter's generic version of Abbott Laboratories' sevoflurane, the world's most widely used anesthetic agent, does not infringe Abbott's patent on the drug.

26 Sep 2005, 17:21 GMT - Sevoflurane is an inhaled anesthetic originally developed by Baxter in the 1970s. The company licensed the patents for making the product in the 1980s to Maruishi Pharmaceutical, which subsequently sublicensed the patents to Abbott.

In June 2000, Baxter submitted to the FDA an abbreviated new drug application for the product, which the FDA approved in 2002. Abbott filed a lawsuit alleging patent infringement. In March 2002 the federal district court granted summary judgment to Baxter. Abbott filed an appeal, and in July 2003 the US Appeals Court vacated the decision and remanded the case back to the district court for a full trial.

In parallel to the patent litigation, Abbott also sought arbitration under the licensing agreements to prevent Baxter from selling sevoflurane before the licenses expired. Under the ruling by the arbitration panel, Baxter cannot market sevoflurane in the US until after December 10, 2005. With the court's decision, Baxter will be free to sell its generic sevoflurane product in the US after that date. The company is also seeking regulatory approval for the product in other parts of the world.

[matthu] 23/9/2005 19:27

Genzyme seeking to cement their collaboration with Cambridge Antibody Technology at Granta Park


Firm outlines the future of drugs

GENZYME, one of the world's most powerful biotech companies, wants to change the way drugs are developed and patented in a bid to treat the whole world, rich and poor.

The company officially opened its research centre on Cambridge Science Park on Thursday, and chief executive, Henri Termeer took the opportunity to set out his vision for the future of drug discovery.

He spoke of a more shared approach to discovery, with the big firms, like Genzyme, working with the world's leading universities, like Cambridge, without putting the emphasis on patents, but concentrating on unmet need.

Genzyme, which began in 1981 in the US and produced its first world-beating drugs in a tiny laboratory in the red light district of Boston, is now a multi-billion dollar business, producing the blockbuster kidney dialysis drug Renegal - largely at its Haverhill plant - but better known for the many "orphan" drugs it has given the world.

Orphan refers to drugs for diseases which are so rare that most drugs companies will not embark on their development because, commercially, they are just not viable.

There are special patent arrangements which allow companies advantageous terms to develop orphan drugs, but Genzyme led the way, initially with its cure for Gaucher's Disease, a painful and fatal wasting disease.

The treatment was discovered in an enzyme found in human placenta, but 22,000 after-births were needed to treat just one patient for one year. Genzyme has since found a substitute.

Orphan drugs are the company's first love, and it has a pipeline of treatments coming through, its guiding principle is to provide new drugs where there is unmet need.

Thursday's opening on the science park was one of a series for the company this week across Europe. The Cambridge event included a glittering lineup of guests, among them science minister Lord Sainsbury, Prof Alison Richard, vice-chancellor of Cambridge University, Prof Sir Michael Rawlins of NICE, the UK body which governs drug approval, Prof Tim Cox of the medical school in Cambridge, and the top brass from Genzyme.

Alan Smith, Genzyme's chief scientific officer, said: "We are delighted to become part of the Cambridge Phenomenon (little knowing that Genzyme, only a week earlier, had been credited with starting it), what we have come to regard as the premier technology cluster in Europe."

Genzyme will be employing 150 world class scientists at the new research centre, and cementing their collaboration with Cambridge Antibody Technology at Granta Park.

Dr Smith also announced that Genzyme would be funding a chair in experimental medicine at the university's medical school.

"You will find us a very willing partner," he said.

Prof Alison Richard said the day was a cause for celebrating the success and maturity of the Cambridge Cluster: "There is a crackle in the air around Cambridge," she said. Now, it's getting louder.

As Henri Termeer said: "We looked at going to Oxford, but it was too far from Cambridge."

[matthu] 14/9/2005 19:37

Cambridge Antibody Technology "buy," target price raised
Tuesday, September 13, 2005 10:59:20 AM ET
Canaccord Capital

LONDON, September 13 (newratings.com) - Analysts at Canaccord Capital maintain their "buy" rating on Cambridge Antibody Technology (CAT.ISE). The target price has been raised to 895p.

In a research note published this morning, the analysts mention that the company has reported its results for the nine months ended June 30 in-line with the estimates. The progress in Cambridge Antibody Technology's AstraZeneca collaboration has been impressive, the analysts say. Canaccord Capital views the appointment of Dr John Brown as the company's non-executive director as positive, given his vast experience in the international biotechnology market.

(Compare this target price of 895p to CSFB's price of 771p in post 458.)

[matthu] 12/9/2005 13:08

Cambridge Antibody narrows 3rd quarter losses
Mon 12 Sep 2005
LONDON (SHARECAST) - Drugs group Cambridge Antibody Technology Group has reported a narrowing of losses for the nine months to June.

Pre-tax losses came at £21.6m as opposed to the loss of £28.3m in the same period last year while turnover increased slightly to £12.1m compared to £10.1m previously.

In the third quarter, a clinical milestone payment was received from Dyax and other revenue was received from MorphoSys, which boosted turnover.

"The diversified pipeline of licensed antibody product candidates offers good prospects for growth in the medium term and CAT has significant longer term opportunities from proprietary development and alliances, especially with Genzyme and AstraZeneca," said the group.

[matthu] 12/9/2005 13:06

Cambridge Antibody "Cash Burn" Looks Light
Monday, September 12, 2005 4:36:50 AM ET
Dow Jones Newswires

0824 GMT [Dow Jones] Cambridge Antibody Technology's (CATG) "cash burn", detailed at its 9-month results, is much lighter-than-anticipated, says trader. Expects the company to make "cash" of GBP4M-GBP5M for FY '05 ahead of previous guidance for GBP2M. "This does not signify ongoing profitability - the inflows are boosted this year by one-off payments from Abbott in relation to the court victory last year," he says. Trades +2% at 765p. (DWE)

[matthu] 03/9/2005 13:36

Not CAT, but CAT related: Maybe worth keeping an eye on?

from

City antibodies firm claims patent victory

The Battle of the Antibodies has begun, with Cambridge firm Domantis, and Belgian rival, Ablynx taking diametrically opposed views on a decision by the European Patent Office this week.

Ablynx says it has scuppered attempts by Domantis to challenge patents relating to "nanobodies" used in drug discovery.

Domantis has issued a statement saying it has successfully opposed Ablynx' patent, adding: "The decision of the EPO reaffirms our complete freedom to operate in the field of human domain antibodies."

The Belgian company, which claims to be a pioneer in the field, has issued a statement saying the European Patent Office has upheld its claims to exclusive use of nanobodies because the patents involved cover basic structure, composition, preparation and uses.

Nanobodies are therapeutic proteins which combine the beneficial features of conventional antibodies with desirable properties of small-molecule drugs.

"All products, including therapeutics, that contain nanobodies are covered by these patents, irrespective of their species of origin," Ablynx states, "so we are the only company in the world capable of commercialising healthcare products based on nanobodies."

Domantis says Ablynx's nanobodies are taken from camels and llamas, while it uses human antibodies.

Robert Connelly, Domantis ceo, said last night: "We are delighted with the outcome of these proceedings. The decision by the EPO to dramatically narrow the scope of the Ablynx patent reaffirms our dominant position and complete freedom to operate in the field of human domain antibodies."

Domantis was set up in December 2000 by Sir Greg Winter, who also co-founded Cambridge Antibody Technology, and Dr Ian Tomlinson, both globally-recognised leaders in antibody research.

The company is backed by the UK Medical Research Council, has 50 people based on Cambridge Science Park, and a handful in the US.

It is working on treatments for cardiovascular disease, rheumatoid arthritis and Crohn's Disease.

[matthu] 01/9/2005 09:49

I suppose the valuation depends on the risk you attach to CAT losing the appeal. Every time I re-read extracts from the original court case, I am less persuaded that the appeal has any chance of being upheld. But DYOR.

This valuation comes from

and to an extent needs to be updated for further indications being approved for Humira, more recent sales figures etc., all of which have been positive.

December 2004

I agree that the market hasn't fully valued this company. My personal rough valuation for CAT as of today - after taking the AZ deal into account (cash plus dilution), and assuming the Abbott trial result stands is as follows:

Cash £175M = £3.50 per share
Humira (in RA) £150M = £3.00 per share
Humira (in other indications) £50M = £1.00 per share

Internal pipeline £0M = £0.00 per share (it was worth less than zero before Trabio died)

Licensed pipeline (excluding ABT-874 (J695) £5M = £0.10 per share

ABT-874 £50M = £1.00 per share

Phage/ribosome display technology value £15M = £0.30 per share

This gives me a total approximate value today £445M = £8.90 per share

I think the market has not yet valued ABT-874 properly. If ABT-874 is approved during the next three years I would expect it to add a further £2-3 per share in value. And if the company is managed properly it should be possible to add another £3-4 pounds per share in value during the next three years by development of future in-licensed products.

[graemereid] 01/9/2005 07:50

matthu,
have you tried to estimate traget prices if the appeal is either rejected or up held?

[matthu] 31/8/2005 10:39

LONDON (SHARECAST) - Cambridge Antibody Technology has been downgraded to 'neutral' from 'outperform' by CSFB ahead of its third quarter results next month.

The broker noted that CAT's shares have risen strongly in recent months and moved above its price target of 654p. CSFB raised its price target to 771p.

CSFB said its long-standing view remains that antibody technology is largely a commodity and is unlikely to drive significant shareholder value.

so ... CSFB maintained a price target of 654p while the share price rose through 700p to 740p. It now raises its price target to 771p and classifies this as a downgrade? Watch CAT move through 800 as the court case gets closer (IMHO)

[matthu] 31/8/2005 07:46

CSFB Downgrades Cambridge Antibody Technology
Wednesday, August 31, 2005 2:07:57 AM ET - Dow Jones Newswires

0559 GMT [Dow Jones] CSFB downgrades Cambridge Antibody Technology (CATG) to neutral from outperform. "We believe CAT's antibody library technology is essentially a commodity and alone is unlikely to drive significant shareholder value." Successful antibody stories have in the past come from companies which have essentially owned the product and not just the technology, says CSFB. "While CAT clearly has world class technology, its abilities in respect of the other elements of the process are relatively nascent." Outside of newsflow around the patent case and progress for partnered products, reckons visibility for forward progress in terms of business transformation remains limited. Shares closed at 740p. (SMT)

(IMHO there is still considerable upside surrounding the patent case)

[matthu] 23/8/2005 22:30

Symphogen and Cambridge Antibody Technology Sign Patent Licensing Agreement

COPENHAGEN, Denmark, Aug. 23, 2005: Symphogen A/S, a biotechnology company pioneering recombinant human polyclonal antibodies for the treatment and prevention of human disease, announced today that it has entered into a patent license agreement with Cambridge Antibody Technology (LSE: CAT; NASDAQ: CATG).

Under the terms of the agreement, Symphogen receives a license to use CAT´s antibody phage display patents for research purposes and to develop and commercialize a number of therapeutic and diagnostic antibody products. Upon signing the agreement, Symphogen made an upfront payment for the license and exercised its first product license option to develop and commercialize its lead product Sym001. As a condition of exercising this option, Symphogen paid a product license fee and may make future milestone and royalty payments to CAT.

Sym001 is a recombinant, fully human, anti Rhesus D polyclonal antibody which Symphogen is developing for Idiopathic Thrombocytopenic Purpura (ITP) and Hemolytic Disease of Newborns (HDN). The Company plans to file an IND for initiation of Phase I clinical trials in 2006.

Kirsten Drejer, CEO of Symphogen, commented:

"We are very pleased to have secured access to Cambridge Antibody Technology's validated phage display patent estate. Combined with our proprietary antibody technology, Symphage™, this strengthens our competitiveness in the antibody arena. This partnership with CAT further supports the clinical development and commercialization of our lead product, Sym001, for the treatment of ITP and HDN. Our strategy is to build a strong portfolio of therapeutic recombinant polyclonal antibodies through our internal efforts and in collaboration with partners."

[matthu] 21/8/2005 08:34

Merck, Amrad, Centocor and Wyeth all following CAT? Must be money somewhere!

Merck & Co/Amrad: an uncertain pathway to success

19 Aug 2005, 08:36 GMT - Amrad and Merck & Co have selected a lead anti-IL-13 monoclonal antibody for development in severe asthma. The antibody holds promise for difficult-to-treat patients, and has sales potential in excess of $1 billion. Given asthma's complex pathophysiology, it is uncertain whether targeting this particular pathway will ultimately prove successful.

Asthma is a common chronic disorder of the airways that afflicts up to 150 million people globally, according to the World Health Organization. Although symptoms in many patients are controlled with current standard of care, around 20% of asthma sufferers across the US, UK, France, Germany, Italy and Spain have a form of severe asthma that represents a significant unmet medical need. Although this group represents a small percentage of all asthma patients, it accounts for much of the morbidity, mortality, and cost of the disease.

Monoclonal antibodies offer promise

Many of the mediators implicated in the pathophysiology of asthma appear to be excellent targets for monoclonal antibody (mAb) intervention, and the infrequent dosing regimen of mAbs, which may only need once- to twice-monthly dosing, is a major advantage. The first mAb therapy approved for the treatment of severe asthma was Novartis and Genentech's Xolair (omalizumab), an anti-IgE antibody, which was launched in the US in 2003.

However, Xolair is only indicated for use in patients with atopic, or allergic, asthma, who represent around 40% of the total adult severe asthma population. A novel mAb that can prove effective in both atopic and non-atopic asthma could have sales potential in excess of $1 billion, according to research conducted by Datamonitor.

The race is on

Studies in animal models have revealed a pivotal role for IL-13 as a mediator of the inflammation and fibrosis associated with asthma, suggesting that it is an important therapeutic target for severe asthma. In 2003, in one of the largest biotechnology collaborations in Australian history, Merck licensed Amrad's technology for an IL-13 monoclonal antibody, which has now been selected for full preclinical development. Datamonitor estimates that the drug candidate will enter clinical development in late 2006, or early 2007.

The race is on for Merck and Amrad, however, as this has proved an active area of research for other pharmaceutical companies: in July 2005, Cambridge Antibody Technology announced that its anti-IL-13 monoclonal antibody, CAT-354, was well-tolerated with no safety concerns identified in a phase I clinical trial in mild asthmatic patients. Centocor and Wyeth are also conducting preclinical work on developing therapies that could inhibit IL-13.

This interest is justified as, in addition to severe asthma, IL-13 may also be a promising therapeutic target for other respiratory conditions, such as idiopathic pulmonary fibrosis, a devastating disease affecting elderly patients that has a survival rate lower than many neoplastic diseases.

Question still remain concerning whether targeting a single pathway will ultimately prove successful, given the failure of other mAb therapies, including offerings from Protein Design Labs, GlaxoSmithKline and Schering-Plough, to demonstrate any clinical benefit. However, monoclonal antibodies for respiratory indications are very much in their infancy and as the industry gains experience in this area, the market certainly has the potential for further market expansion, which bodes well for Merck and Amrad.

[shirishg] 14/7/2005 06:03

Post removed by ADVFN

[matthu] 14/7/2005 05:31

As far as I can tell, the Humira figures seem right because they tie in with an annual forecast of $1.3 billion mentioned e.g. here


CAT's royalty (assuming they win the appeal case) should be about 5.25% of sales.

[crystalclear] 14/7/2005 01:31

Sales of Mobic, which Abbott sells through a joint venture with Boehringer Ingelheim GmbH, more than tripled to $322 million ....
...
Sales of Humira, introduced in 2002 and Abbott's fastest growing medicine, jumped 58 percent to $321 million.

Do the Humira figures seem about right to you Matthu?
Are they quarterly figures, and is CAT's 5% derived from the sales figure, or from some sort of profit figure?

[matthu] 14/7/2005 01:01

If you get an elephant which doubles in size in a year, and a fly which quadruples in size in the same period, which is growing more quickly? ;-)

[crystalclear] 13/7/2005 21:28

Sales of Mobic, which Abbott sells through a joint venture with Boehringer Ingelheim GmbH, more than tripled ....

Sales of Humira, introduced in 2002 and Abbott's fastest growing medicine, jumped 58 percent .....

Sales of Humira, introduced in 2002 and Abbott's fastest growing medicine, .....

====

Somebody's maths isn't too good.

[matthu] 13/7/2005 20:50

Abbott has just announced 38% 2nd-Qtr Net Income Gain


[2nd quarter] Sales of Humira, introduced in 2002 and Abbott's fastest growing medicine, jumped 58 percent to $321 million.

In February 2005 Abbott upgraded the drug's sales forecast, predicting global revenues of $1.3 billion for this year. 2nd quarter results seem to support this view. With a strengthening dollar, and over 5% royalty accruing to CAT, the share price will continue to firm (imho) .

[bruce8] 11/7/2005 16:19

Looking good for a run up from here.

[matthu] 07/7/2005 21:54

ROCKVILLE, Md., July 07, 2005 /PRNewswire-FirstCall/ -- Human Genome Sciences, Inc. announced today that GlaxoSmithKline has exercised its option to develop and commercialize LymphoStat-B(TM) (belimumab) jointly with Human Genome Sciences.

LymphoStat-B, a human monoclonal antibody that specifically recognizes and inhibits the biological activity of B-lymphocyte stimulator (BLyS(TM)), is in clinical development as a potential treatment for rheumatoid arthritis and systemic lupus erythematosus (SLE). In April 2005, Human Genome Sciences reported that LymphoStat-B met the primary efficacy and safety endpoints in a Phase 2 clinical trial in patients with rheumatoid arthritis.(1) The Phase 2 results demonstrated that LymphoStat-B is safe and well tolerated, biologically active, and reduces the signs and symptoms of rheumatoid arthritis at a level of statistical significance. It is anticipated that the full presentation of data from the Phase 2 trial will take place at an appropriate scientific meeting later in 2005. The results of a separate Phase 2 clinical trial in patients with SLE are expected in Fall 2005.(2)

As part of its June 1996 agreement with GSK(3), Human Genome Sciences granted a 50/50 co-development and co-promotion option to GSK for certain Human Genome Sciences human therapeutic products that successfully complete Phase 2a clinical trials. Under the terms of the agreement, GSK and Human Genome Sciences will share equally in Phase 3/4 development costs, and will share equally in sales and marketing expenses and profits of any product that is commercialized under the agreement, under a co-development and co-promotion agreement, the remaining terms of which are being negotiated by the parties.

H. Thomas Watkins, Chief Executive Officer, said, "We are very pleased that GSK has exercised its option to develop and commercialize LymphoStat-B jointly with Human Genome Sciences. Autoimmune diseases such as rheumatoid arthritis and lupus cause suffering to millions of people. It is our hope that LymphoStat-B will one day become an important treatment option for those who suffer from these diseases. GSK is a world leader in the pharmaceutical industry and our most important strategic partner. We are confident that GSK's decision to exercise its option to LymphoStat-B will lead to a productive collaboration between the parties that will greatly facilitate its development and eventual commercialization."

LymphoStat-B is a Human Genome Sciences drug, created through a collaboration with Cambridge Antibody Technology.

[matthu] 23/6/2005 23:27

Biotech outfit Cambridge Antibody was up £0.23 to £6.70 after preliminary results of a Phase I clinical trial of CAT-354, a human anti-IL13 monoclonal antibody being studied as a potential treatment for severe asthma, showed that the antibody was well tolerated with no safety concerns identified. The company plans to start a clinical pharmacology study later this year.


CAT ANNOUNCES DATA FROM PHASE I CLINICAL TRIAL OF CAT-354

Cambridge, UK - Cambridge Antibody Technology (LSE: CAT; NASDAQ: CATG) today
announces that preliminary results of a Phase I clinical trial of CAT-354, a
human anti-IL13 monoclonal antibody being studied as a potential treatment for
severe asthma, showed CAT-354 to be well tolerated with no safety concerns
identified.

The objective of the trial, which commenced in September 2004, was to assess the
safety, tolerability and pharmacokinetics of CAT-354. It was a double-blind,
placebo-controlled, rising single dose intravenous study in 34 mild asthmatic
patients. Preliminary results showed that CAT-354 was well tolerated at all
doses and there were no identified safety concerns; pharmacokinetics were as
anticipated. The trial results will be submitted to an appropriate scientific
meeting in due course.

Based on these results, CAT is planning to start a clinical pharmacology study
in the fourth quarter of 2005. This is being planned as a repeat dose allergen
challenge study in patients with asthma.

Patrick Round, VP Development at CAT, commented: "CAT-354 is an important
product candidate for CAT and this trial was the first clinical step in its
development as a potential treatment for severe asthma. We are encouraged by
these preliminary results and are now moving forward with plans for a second
clinical trial."