|Healthcare Review: Community Health Systems, Dehaier Medical, BioLineRX, Oncolytics Biotech, Isis Pharmaceuticals|
|By Staff and Wire Reports|
|Monday, 09 September 2013 12:51|
Community Health Systems (CYH -3.9%) slips after Citigroup cut the shares from Buy to Neutral earlier, and lowered its price target from $60 to $42.The firm says that while CYH's potential deal with HMA represents an accretive acquisition of complimentary assets, it also increases its financial leverage, operating and legal risk.Citi is concerned that Q3 results for both companies could lead to another round of estimate reductions.
Shares of Dehaier Medical Systems (DHRM +2.7%) tick higher after announcing it's landed a procurement agreement worth about $600K to supply the Beijing Kanglian Medicine Company.The company will supply Color Doppler Ultrasound machines and monitors to county hospitals and clinics in rural areas of China.
BioLineRX (BLRX +13.4%) soars after BL-8040 gets an Orphan Drug Designation for acute myeloid leukemia.Partial results from a Phase 2 study are due later this year.CEO Kinneret Savitsky says the treatment can be "a significant addition to the drug arsenal for [AML], especially when considering its promising preclinical results, unique biological mechanism and ability to synergize with other [approved] drugs."
Oncolytics Biotech (ONCY) announces tumor response data from a Phase 2 trial of its human reovirus variant Reolysin in patients with squamous cell carcinoma of the lung.Out of 25 patients who got more than one cycle of therapy, 23 exhibited overall tumor shrinkage.CEO Brad Thompson is "thrilled."Mean tumor shrinkage was 32.7%.
Isis Pharmaceuticals (ISIS) jumps 9.2% premarket after announcing a strategic collaboration with Biogen (BIIB) to develop treatments for neurological disorders using ISIS' antisense technology.The terms of the six-year deal given BIIB exclusive rights to ISIS' technology and call for an upfront payment to ISIS of $100M.ISIS is eligible to receive up to $220M in milestone payments on antisense molecules and may also receive additional funds to cover the costs of clinical trials.The upfront payment will be charged to R&D expense for BIIB in Q3.