Science & Technology
Science and Technology
Science and Technology
Sun, June 27, 2010
Fri, June 25, 2010
Thu, June 24, 2010 Merge Healthcare, Sanofi, Alnylam, Isis and GlaxoSmithKline
CHICAGO--([ BUSINESS WIRE ])--Zacks.com Analyst Blog features: Merge Healthcare Inc. (Nasdaq: [ MRGE ]), Sanofi-Aventis (NYSE: [ SNY ]), Alnylam Pharmaceuticals (Nasdaq: [ ALNY ]), Isis Pharmaceuticals, Inc. (Nasdaq: [ ISIS ]) and GlaxoSmithKline PLC (NYSE: [ GSK ]).
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Here are highlights from Wednesdaya™s Analyst Blog:
Merge Inks Deal with Brazilian Co
Recently, Merge Healthcare Inc. (Nasdaq: [ MRGE ]) and Microdata Tecnologia of Brazil entered into a distribution agreement whereby the latter will have exclusive access to the Portuguese version of Mergea™s eFilm Workstation. Microdata Tecnologia will use eFilm Workstation to replace the viewing component of its current Picture Archiving and Communication System (PACS), designed to enhance the medical imaging solution.
eFilm Workstation is a diagnostic workstation that is the most downloaded software used for viewing medical images. The company wants to exploit the benefits from this Portuguese-language version of eFilm Workstation for expanding its reach in the imaging market, where digital imaging is quickly coming up.
Microdata Tecnologia manufactures PACS and Medical Imaging Technology and possesses a competitive position in the Brazilian market with a 20% market share. The companya™s partnership with Merge would lead to the expansion of its PACS business and help maintain its competitive position in Brazil.
Brazil is one of the fastest-growing emerging markets in the world. Based on the expansion as well as adoption of new technologies, the PACS market in Brazil is expected to grow at a CAGR of 32.4% from fiscal 2005 through fiscal 2015.
Merge is a health care software and services company focused on integrating radiology workflow to improve productivity, profitability and patient care by fusing business and clinical workflow. It provides its eTrials software and services to pharmaceutical, biotech, medical device and Contract Research Organizations to facilitate data capture, logistics, patient interaction and clinical trial management. Mergea™s eFilm Workstation also includes other language versions such as Spanish, Japanese, Russian and Polish.
Merge has ample growth potential in the diagnostic imaging workflow applications market. In todaya™s digital world, film has become almost obsolete. We believe this partnership would strengthen Mergea™s foothold in the upcoming imaging market.
Sanofi and Regulus Ink Deal
Sanofi-Aventis (NYSE: [ SNY ]) and Regulus Therapeutics Inc. recently joined forces to discover, develop, and commercialize microRNA (micro-RiboNucleic Acid) therapeutics. The initial focus of the alliance will be in the area of fibrosis a" a group of diseases that cause scarring inside organs. MicroRNA molecules treat diseases by turning parts of genes on or off.
The deal, which could be worth more than $750 million, allows Sanofi-Aventis and Regulus to collaborate on microRNA drug discovery and preclinical development in up to four microRNA targets, including Regulusa™ lead fibrosis program targeting microRNA-21. Preclinical studies have suggested that microRNA-21 leads to the improvement of cardiac function in fibrotic impaired mice.
Under the terms of the deal, Regulus a" a joint venture between Alnylam Pharmaceuticals (Nasdaq: [ ALNY ]) and Isis Pharmaceuticals, Inc. (Nasdaq: [ ISIS ]) a" would receive a $25 million upfront fee and a potential $10 million equity investment at a mutually agreed price. Regulus is also entitled to receive milestone and royalty payments.
Furthermore, Sanofi, which will bear all research support costs for the next three years, has the option to expand its alliance for two more years beyond the first four targets. That would amount to a payment of an additional $50 million over three years.
Moreover, the deal entitles Isis and Alnylam to $1.8 million each (from Regulus) from the upfront payment received by Regulus. Furthermore, the companies are eligible to receive a similar percentage of any future milestone payments. Regulus is also collaborating with GlaxoSmithKline PLC (NYSE: [ GSK ]) on four potential inflammatory disease therapies.
Our Take
We believe that the partnership with a big player like Sanofi provides a big boost to the development of Regulusa™ microRNA therapeutics, which are in pre-clinical development. If these are successfully developed, we believe Sanofia™s marketing muscle will result in successful commercialization of the drugs.
Currently, we are Neutral on Alnylam Pharma. Even though Alnylama™s RNA technology is potentially revolutionary, we remain skeptical about its success in drug development application. A very limited number of drug candidates based on RNAi discovery have been tested in animals or humans. Furthermore, we are alsoconcerned about the early stage of development. We areNeutral on Isis Pharmaceuticals and Sanofi-Aventis.
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