Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Celgene Corporation (CELG), Compugen Ltd. (USA) (CGEN): This Week in Biotech

With the SPDR S&P Biotech Index up 40% over the trailing-12-month period, it’s evident that investment dollars are willingly flowing into the biotech sector. Keeping that in mind, let’s have a look at some of the rulings, studies, and companies that made waves in the sector last week.

Yet again, this week was absolutely dominated by earnings-driven events. Given that we at the Fool have covered many of these stories already this week I want to instead focus on five non-earnings driven events that caught my attention.

Celgene Corporation (NASDAQ:CELG)

As I prefer to always start you off with the good news, let’s turn our attention to Celgene Corporation (NASDAQ:CELG), which, on Friday, announced that the European Commission had approved its oral relapsed and refractory rare blood cancer drug pomalidomide in combination with dexamethasone. Celgene Corporation (NASDAQ:CELG) will be launching the drug in Europe under the trade name Imnovid, and it’ll be used in cases where patients have tried at least two previous cancer therapies. In late-stage trials, Imnovid delivered progression-free survival of 15.7 weeks, which was a dramatic improvement over the placebo. Worldwide peak sales estimates for the drug are around $1 billion, so this is certainly a good start.

On Monday, small-cap biotechnology company Compugen Ltd. (USA) (NASDAQ:CGEN) gave investors something to cheer about when it announced a collaboration and licensing agreement with Bayer for two of its antibody-based immunotherapies. The deal could be worth as much as $540 million for Compugen Ltd. (USA) (NASDAQ:CGEN) and gives the company $10 million upfront, as well as the potential for $30 million more in milestone payments during preclinical trials. The two companies will co-develop these drugs, with Bayer getting worldwide rights upon commercialization (though Compugen Ltd. (USA) (NASDAQ:CGEN) would still receive a mid- to high-single-digit royalty). This is great news for Compugen Ltd. (USA) (NASDAQ:CGEN), as it solves the problem of seeking out a partner later, helps reduce its clinical testing costs, and staves off the need to dilute shareholders with a secondary offering to raise cash. Shares added 44% this week.

But as you might imagine, not all news this week was good. Although ISIS Pharmaceuticals, Inc. (NASDAQ:ISIS)‘ share price hardly moved, it delivered disappointing news on Monday that ISIS Pharmaceuticals, Inc. (NASDAQ:ISIS)-CRPrx failed to demonstrate a statistically significant improvement in inflammation reduction as compared with the placebo in a mid-stage rheumatoid arthritis trial. Isis noted that its drug did cut the C-reactive protein by 67%,

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.