Biotech’s Rise Shows No Sign of Slowing Down in 2017: Today’s Reports on IntelliPharmaCeutics and Orexigen Therapeutics

NEW YORK, NY / ACCESSWIRE / February 27, 2017 /
The Biotech Industry has posted some impressive gains since Election Day and the rally has continued for the larger part of this year. Both the iShares NASDAQ Biotechnology Index ETF and the SPDR S&P Biotech ETF have just posted four consecutive weekly gains as of February 17th, the first time since August 2016 (iShares) and June 2016 (SPDR). While President Trump has also commented on high drug prices, the landscape appears to be easing for the industry in 2017 as Trump has also promised to speed up the FDA’s approval process and has promised a “phenomenal” tax plan for American businesses, although the market is still awaiting detailed announcements.

Additionally, the industry has seen a number of mergers and acquisition deals already completed this year. In January, Takeda Pharmaceutical announced a deal to acquire Ariad for $24.00 per share in cash, or approximately $5.2 billion, a premium of roughly 75 percent. The amount of M&A deals is expected to pick up rapidly in 2017 as major drug makers look to boost up revenues.

“2017 is likely to push biopharma deal making to new heights,” wrote Ernst & Young’s Andrew Forman, in a research note titled M&A Outlook and Firepower Report 2017.

“Large drug companies have been making money doing things that are artificial and unsustainable. Like price increases, inversions and financial engineering,” says Brad Loncar, a cancer-company expert at Loncar Investments. “Because those things are coming to an end and the environment for the pharma industry is becoming much more challenging, companies are having a real problem posting revenue growth,” says Loncar. “The only way they can get revenue growth is to buy it.”

Let’s Take a
Closer Look at Today’s Trending Tickers

IntelliPharmaCeutics’ shares spiked 18.60 percent to close at $2.55 a share on Friday. The stock traded between $2.50 and $2.82 on volume of 5.92 million shares traded. The company has announced that it has received final approval from the U.S. Food and Drug Administration for the Company’s abbreviated new drug application (ANDA) for metformin hydrochloride extended release tablets in the 500 mg and 750 mg strengths. The newly approved product is a generic equivalent to Glucophage XR 500 mg and 750 mg branded product sold in the United States by Bristol-Myers Squibb.

“FDA approval of our application for a generic version of Glucophage XR provides further indication that the FDA is making progress to clear its backlog of ANDA drug candidates under review, and further validation of our core drug development and regulatory capability. We are encouraged that some of the Company’s other 8 ANDA candidates may be accorded further attention soon. We are actively evaluating options to realize commercial returns from this new approval.”

Access Today’s IntelliPharmaCeutics
Research Report Click Here

Orexigen Therapeutics’ shares surged 11.56 percent to close at $4.44 a share on Friday. The stock traded between $3.80 and $4.46 on volume 538,865 million shares traded. Orexigen’s first medicine, Contrave, was approved in the United States in September 2014 and has become the most prescribed branded obesity medication since June 2015. Shares of Orexigen Therapeutics have gained approximately 155 percent year-to-date.

On January 25th, the company, in partnership with Laboratorios Farmacéuticos Rovi, S.A., announced the launch of Mysimba in Spain. Mysimba is approved by the European Medicines Agency for the management of weight in adult patients (≥18 years) with an initial Body Mass Index (BMI) of ≥ 30 kg/m2 (obese), or ≥ 27 kg/m2 to < 30 kg/m2 (overweight) in the presence of one or more weight-related co-morbidities (e.g., type 2 diabetes, dyslipidaemia, or controlled hypertension).

Access Today’s Orexigen Therapeutics
Research Report Click Here

Today’s Features Includes:

IntelliPharmaCeutics Intl Inc. (NASDAQ: IPCI)

Orexigen Therapeutics, Inc. (NASDAQ: OREX)

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