Dynavax Technologies Corporation (DVAX), Elan Corporation, plc (ADR) (ELN): This Week in Biotech

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I’m not sure what Royalty Pharma sees in Elan Corporation, plc (ADR) (NYSE:ELN). Having sold off its global rights in Tysabri to Biogen Idec Inc. (NASDAQ:BIIB), Elan doesn’t have much, if anything, going for it. The company paid a hefty $1 billion for a 21% royalty interest in Theravance Inc (NASDAQ:THRX)‘s line of COPD drugs, but Elan Corporation, plc (ADR) (NYSE:ELN) isn’t primed to turn a meaningful profit from this royalty stream for years. This is a situation and stock I’d strongly suggest avoiding.

Finally, Questcor Pharmaceuticals Inc (NASDAQ:QCOR) shocked and pleased investors when it announced the $135 million purchase of Synacthen from Novartis AG (ADR) (NYSE:NVS). As my Foolish colleague Keith Speights noted, Synatchen was slated to be a potential rival to Questcor Pharmaceuticals Inc (NASDAQ:QCOR)’s lead drug, Acthar Gel, which it currently holds indications to treat 19 ailments. With this potential competition now under its control it lifts some uncertainty from Acthar’s growth outlook.

The article This Week in Biotech originally appeared on Fool.com is written by Sean Williams.

Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.The Motley Fool has no position in any of the stocks mentioned.

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