|Accuray soars on strong earnings. Bionovo falls on offering. After the bell: Depomed gets FDA approval|
|By Mary Davila|
|Friday, 28 January 2011 19:31|
After the bell, Depomed, Inc. (Nasdaq:DEPO) announced that US FDA has approved GRALISE(TM) (gabapentin) Tablets for once-daily treatment of post-herpetic neuralgia (PHN), which is pain following healing of the rash associated with shingles. GRALISE was developed by Depomed under the code name DM-1796 and is licensed to Abbott Products, Inc. in the U.S., Canada and Mexico. The approval of GRALISE triggers a milestone payment of $48 million from Abbott to Depomed.
"The approval of GRALISE is a major step toward achieving our key strategic objective of sustainable profitability in 2011 and beyond," said Carl Pelzel, President and CEO of Depomed. "I'd like to thank everyone on the Depomed and Abbott teams involved in the development and approval of this important therapy for their hard work and dedication," added Mr. Pelzel.
In November 2010, GRALISE was given Orphan Drug designation.
The stock hit $7.37, up 18% in a 1/2 hour of extended trading.
Accuray Incorporated (Nasdaq:ARAY), a global leader in the field of radiosurgery, announced today better than expected financial results for the second quarter of fiscal year 2011, ended December 31, 2010.
Accuray produces the CyberKnife Robotic Radiosurgery System, the world's only robotic radiosurgery system designed to non-invasively treat tumors anywhere in the body. The company said its total backlog of orders for systems and services jumped 26 percent to $410 million at the end of the latest quarter from the year-ago period.
"We are pleased with the continued momentum in generating new orders for CyberKnife Systems," said Euan Thomson, president and chief executive officer of Accuray Incorporated. "During the past four quarters, we have added 56 contracts into backlog, confirming the ongoing demand for and acceptance of the CyberKnife as the premier system for delivering treatment in the rapidly expanding market of full body radiosurgery."
On heavy volume, shares of Accuray soared $2.05 or 30% to $8.91.
Bionovo, Inc. (Nasdaq:BNVI), a pharmaceutical company focused on the discovery and development of safe and effective treatments for women's health and cancer, today announced the pricing of its previously announced underwritten public offering, to sell up to 30,031,200 units at a price per unit of $1.00 for aggregate gross proceeds of approximately $30 million. Bionovo expects to use the net proceeds from this offering to advance its lead drug candidate for postmenopausal vasomotor symptoms, Menerba, into Phase 3 clinical trials, and for general corporate purposes.
Shares tanked 21% or 23 cents to close the day at $0.87.
Athersys, Inc. (Nasdaq:ATHX) announced today that it has entered into definitive agreements with certain investors to sell 4,366,667 shares of its common stock and warrants to purchase up to an additional 1,310,000 shares of common stock in a registered direct offering for gross proceeds of approximately $13.1 million, before deducting fees and offering expenses.
BioTime, Inc. (NYSE Amex:BTX) today announced that it has acquired substantially all the assets of Cell Targeting, Inc. (CTI), a Cleveland, Ohio-based biotechnology company conducting research in regenerative medicine. The technology acquired from CTI uses peptides selected for their ability to adhere to diseased tissues. By coating or "painting" these peptides onto the surfaces of therapeutic cells using techniques that do not modify the cell physiology, CTI has produced tissue-specific and disease-specific cell modification agents with potential to take cell therapy products to a new level of performance. BioTime issued 261,959 common shares and paid $250,000 in cash to acquire the CTI assets.
Genentech, a member of the Roche Group (SIX: RO, ROG; OTCQX: RHHBY), and Biogen Idec (Nasdaq:BIIB) today announced the U.S. Food and Drug Administration approved Rituxan as a maintenance treatment for patients with advanced follicular lymphoma who responded to initial treatment with Rituxan plus chemotherapy (induction treatment). This milestone follows the clearance of Rituxan for this indication by the European Commission in October 2010.
Attitude Drinks (OTCBB: ATTD), an innovative beverage brand development company, announced today that in a recent clinical trial conducted by the United States Sports Academy, the Company's Phase III ® Recovery Drink proved to be more effective in exercise recovery compared to leading sports beverage brand Gatorade and generic chocolate milk.