Protherics Share Discussion Threads

[rivaldo] 11/11/2008 10:01

Up again. Must admit I'm warming to the BGC deal now, particularly with BGC likely entering the FTSE 250 in December which should give the share price another push.

[bodgit] 08/11/2008 10:13

This from the FT today.

BTG boosted by cancer drug licensing deal
By John O'Doherty

Published: November 7 2008 17:34 | Last updated: November 7 2008 17:34

BTG, the biotechnology group, received a boost on Friday after it licensed one of its anti-cancer drugs for further development to Onyx Pharmaceuticals, in a deal with a potential value of $320m (£203m).

"This is the biggest licensing deal we've done in quite some time," said Andy Burrows, BTG director of investor relations.

"For our shareholders it means that we can show that our investment in drug development pays off, because we can pick the right molecules and get them to a point where we have shown value and find very good partners who can take them forward."

Under the terms of the deal, California-based Onyx Pharmaceuticals will give BTG an upfront payment of $13m, followed by further milestones of $307m, depending on how far the drug progresses through clinical trials and whether it receives regulatory approval.

"The $13m was wired overnight, so that's in the bank," said Mr Burrows. "This has given us immediate cash to help plough back into our own pipeline."

BGC945, the drug compound in question, has so far only been tested in pre-clinical trials. The drug inhibits an enzyme linked to cell multiplication and growth, and is likely to be of particular relevance in dealing with cancer tumours in the lung, ovaries and lining of the uterus. It may also have applications for treating asbestos-related cancers.

Onyx has had prior success in developing anti-cancer compounds. Its lead product Nexavar, which treats kidney and liver cancer, was developed in conjunction with Bayer Pharmaceuticals, and is now approved in 70 countries. Trials are under way to assess Nexavar's efficacy in treating lung and breast cancer.

Separately, BTG announced on Friday that Varisolve, its treatment for varicose veins, had passed US Phase II safety trials, and would be progressing to its final phase by the middle of 2009.

Shares in BTG closed up 11¼p at 143p, while Onyx shares rose just over 13 per cent to $29.52.

[bodgit] 07/11/2008 17:31

GregSC, ooops, sorry. Yes it is of course Tuesday. Cheers.

[gregsc] 07/11/2008 16:44

Protherics EGM is actually Tuesday not Monday.

[bodgit] 07/11/2008 15:59

I understand the Protherics EGM is Monday and BTG Interims Wednesday so could make for a very interesting week ahead. Good weekend all.

[hot_topic] 07/11/2008 15:45

Not only am I still here and but I also bought more on the recent weakness. Lets hope we have some positive comments in the weekend press. HT

[rivaldo] 07/11/2008 14:16

A hugely insightful comment from an Edison analyst on AFX News:

"Drugs company Protherics rises 14 percent to 42 pence, tracking BTG , which announced a licensing deal on Friday, because BTG has agreed to buy Protherics in an all-share deal.

'If the BTG share price goes up you would expect the Protherics price to go up as well because it's an all share offer,' says Edison analyst Jacob Plieth."

Good news today, congrats to BGC. Let's hope the City warms further to this deal.

[baronet 1] 07/11/2008 12:11

Very good news today from BTG and all bodes well for PTI holders who will run with the merger, which is my preferred option. I see that we are hovering around 9th,10th,11th place on the % gainers leader board, excluding Aim stocks. Some of old regulars seem to have gone, hopefully I am wrong.


JB

[armistead34] 07/11/2008 10:39

T-d

'but IMO they're throwing too much cash at products that dont all warrant it.'

Yes: and this is where LM may supply the much needed stringency and strategic vision. I think you'll find BGC are ahead of the game here, because of what happened to Vs in 2003. It was a disaster, which led to a complete shakeout, and refocusing of business on life sciences, and greater value, the results of which we're just beginning to see. I think the strategy of merging with PTI is another step along the way of avoiding such acute dependency on one product, which may disappoint.

Varisolve of course MAY NOT get a partner still. That is still a risk to discount; though I would be surprised if it doesn't. And cytophab may disappoint before it gets to stage 3.

Incidentally, no complaints i imagine with the way PTI's share price is responding this morning to BGC's news?

[bargainbob] 07/11/2008 10:38

The _Doctor,

I think your view is the same as major shareholders. They wanted BGC in to trim the company and find value long term. A lot of main holders in BGC own large chunks of PTI.

[the_doctor] 07/11/2008 10:03

armistead
I've not held PTI by the way.
However, by not a good outcome, I really meant that most holders would presumably have hoped for more. And IF PTI structured their business properly, could be worth more - but IMO they're throwing too much cash at products that dont all warrant it.
The merged PTI-BGC strikes me as a good co though, as you say.

[armistead34] 07/11/2008 08:35

T-_d: Without wanting to push you, could you explain why you think it's not a good outcome. I imagine, a. because you were seeking a higher cash offer from a major pharma, rather than an all share one from BGC; and b. because you felt the company is undervalued at below £1.00. Would this be fair?

Imho, you'll likely not regret the outcome of the merger, though it may dampen volatility. For me that's a good thing! (The new entity is very likely to enter the ftsie 250 before Christmas)

I see BGC at the beginnings of a significant upswing, trailed by excitement over Varisolve, which has been YEARS in coming (and may of course never ultimately deliver); but also by a raft of other product, and a new management vision. PTI seems highly complementary to me; for the risks/rewards attached to Vs, read Cytofab. But if either of these make it successfully to market (let alone both) there will be cash to support the business model for years out, and the circle will be virtuous - enabling later stage product to be bought in and marketed for less risk and higher net return.

As you'll also be aware, BGC is profit making - unlike PTI and sitting on even more cash than PTI. and as this morning's announcement shows, it's able to spring surprises on the positive side- having devastated a few investors in the past with the opposite!

So there's my take. Let me hear yours.

Best.

[the_doctor] 07/11/2008 08:04

I was actually more sceptical that it would be a decent deal for PTI holders.
I now think this will probably go through and IMO, it isnt a good outcome.

armistead34 - 5 Nov'08 - 17:34 - 8379 of 8382
T-_d: Thanks. I understand you're somewhat sceptical about the merger, and about PTI's prospects? Good to have a contrary voice. Would you care to sktch it out for us?

[red ninja] 07/11/2008 07:30

Bobby,

We follow on BTG shirt tails. and US$13 million upfront payment
sounds like a good sum into the company coffers in these times

The milestone payments look good as well, but obviously will
only be triggered if things go to plan.

[bobby.ifa] 07/11/2008 07:28

Will this good news lift PTI,as we arenot yet partners?

[red ninja] 07/11/2008 07:12

Varisolve (BTG) study update showing no risk from micro bubbles to brain +
BTG agreement below :-

London, UK, 7 November 2008: BTG plc (LSE: BGC), the life sciences company, announces it has granted worldwide rights to Onyx Pharmaceuticals, Inc. to develop and commercialise BTG's novel anticancer compound, BGC 945.

Under the terms of the agreement, BTG will receive an upfront payment of $13m and has the potential to receive development milestone payments of up to $72m plus additional payments of up to $235m relating to product approval and achievement of commercial milestones. BTG will also receive a royalty on any future sales worldwide.

'Onyx has a strong track record in developing and commercialising novel cancer therapeutics, as evidenced by their success with Nexavar®, and we see the company as an ideal partner to take BGC 945 forward,' commented Louise Makin, BTG's chief executive officer. 'This agreement is in line with our strategy to realise value from our current pipeline as we focus new investments on acquiring and developing later-stage products.'

BTG has progressed BGC 945 into late-stage preclinical development in collaboration with The Institute of Cancer Research (ICR) where the compound was discovered. BTG will share approximately 10% of the upfront and milestone revenues it receives relating to BGC 945 with ICR plus a pass-through royalty.

BGC 945 is a novel compound that inhibits thymidylate synthase (TS), an enzyme involved in cell growth and division. However, unlike traditional TS inhibitors, BGC 945 enters tumour cells via the alpha-folate receptor, which is over-expressed in certain tumour types, including ovarian, lung, endometrial and mesothelioma cells, but has a restricted expression profile in normal tissues.

[armistead34] 05/11/2008 17:34

T-_d: Thanks. I understand you're somewhat sceptical about the merger, and about PTI's prospects? Good to have a contrary voice. Would you care to sktch it out for us?

[the_doctor] 05/11/2008 12:22

armistead

- extension is to make up for the time spent in reg. approval - different # years in US & EU

- exclusivity is an additional layer. They can get 11 years' protection patents or no patents

[bobby.ifa] 04/11/2008 13:26

How are we to intrpret these EPT disclosures? They seem to be favourable items of news, but doesn't really do anything to the share price
Any advice appreciated.

[armistead34] 04/11/2008 09:56

tD-
Could you explain how 'exclusivity' works in the context of an expired patent.

And what does it take to get a 'patent extension'?

Thanks.

[the_doctor] 03/11/2008 22:06

10 years exclusivity in the EU
Patent extensions need to be considered

[golly1980] 03/11/2008 21:53

bit short but they will hold the market at the end of the patent so they'll just hope to be strong enough by then to be able to stub out any new challengers.

[armistead34] 03/11/2008 16:39

Thanks again.

Slightly surprised to read on the PTI site that the patent on Cytophab runs till 2018 in the states, and 2014 in the EU. Launch, I'm thinking, around 2012, leaves little time...

[golly1980] 03/11/2008 11:04

i'm not to clued up on voraxaze but i know you can by it on the protherics website for emergency use. it's made by a contractor in europe and there was an issue with the first licence application so they have had to re-issue the application.

as for the cyofab/az deal - az came to agreement with the fda on doing a larger phase 2 study to shorten the approval time. don't really know much more on that issue but there was a rns abot 12 months ago.

try this site

[donk4] 03/11/2008 11:03

bargainbob - I do not know re mdx. I suspect that the bod is working on an asset sale/licence but that is just gut. I still think that the key rests with the Ks in that to sell their company for circa 70p ps, they will want to extricate value.