Biotech Breakthrough In Cancer
The fight against cancer sparked a new partnership – and both the medical community and financial community are celebrating.
Shares of Exelixis surged Thursday after the company struck a cancer drug development partnership with one of the world's largest drugmakers, Sanofi-Aventis, worth $140 million upfront and potentially more than $1 billion.
The agreement gives Sanofi the rights to two promising drugs that are in early clinical testing. Under the agreement the companies will also work together to develop other biotech drugs that inhibit the spread of tumors.
Those enzymes, which are called PI3K, are also involved in creating resistance to chemotherapy and radiation therapy.
These deal terms are very impressive to us and highlight the general excitement in the drug development space for the PI3K target for oncology," says Merriman Curhan Ford analyst Joe Pantginis.
Considering the National Cancer Institute estimates Americans spend as much as $72.1 billion on cancer treatments – is another partnership on the horizon?
CNBC’s Pharmaceuticals reporter Mike Huckman thinks it’s entirely possible. And he recommends looking at companies that showed promise at the American Society of Clinical Oncology or ASCO conference.
Huckman thinks it could be worth your while to put the following stocks on your radar:
Huckman explains, OSI will have data coming out this week-end on a lung cancer drug. Medivation will have data on prostate cancer drug. Genomic will introduce a test that may be able to determine the likelihood of colon cancer coming back and Astra-Zeneca is expected to offer data on 3 different cancer drugs.
For more details on the cancer drugs and treatments in development at these companies please watch the video.
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Trader disclosure: On May 28th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Finerman Owns (RIG); Finerman;s Firm Owns (RIG), (PBR), (TBT); Finerman's Firm Owns (BAC) Preferred, (WFC) Prefereed; Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU); Terranova Owns (ABT), (TER), (HES), (JPM), (JOYG), (XBI), (RIMM); Terranova Is Short (XOM) Call Spread; Terranova Owns (DIS) Call Spread; Terranova Owns July Nat Gas Futures; Najarian Owns (ISIS); Najarian Owns (AMAT) Calls; Najarian Owns (FCX) Call Spread; Najarian Owns (BX) Call Spread; Najarian Owns (INTC) Call Spread; Najarian Owns (MOS) Call Spread; Najarian Owns (XHB) Call Spread; Najarian Owns (XLB) Call Spread; Najarian Owns (XLU) Call Spread