CM-CIC Ups NicOx Target Price To EUR11.4
Tuesday, March 21, 2006 9:27:09 AM ET
Dow Jones Newswires
1314 GMT [Dow Jones] CM-CIC Securities ups NicOx's (7413.FR) target to EUR11.4 from EUR10.9, after the group signs an exclusive agreement with Merck (MRK) on the development of new antihypertensive drug. Says the importance of this agreement in terms of amount and the credibility of NicOx's research will lead to a continuation of the share's rerating which began early March with the announcement of the Pfizer (PFE) agreement. Reiterates at buy. Shares +27% at EUR8.49. (LAF)
INTERVIEW: NicOx Could Become A European Amgen - CEO
03-21-06 11:55 AM EST
PARIS -(Dow Jones)- The chief executive of NicOx SA (7413.FR) Tuesday said its osteoarthritis drug HCT 3012, in late stage of clinical development, could propel the French biotechnology company into the sector's top tier.
"If Phase III trial proves successful, NicOx could be a European Amgen," the company's chairman and chief executive officer Michele Garufi told Dow Jones Newswires, referring to Amgen Inc (AMGN), the world's largest biotechnology company.
Garufi said NicOx plans to have recruited by the beginning of the summer the 820 patients needed for its Phase III study which intends to confirm the drug's lack of interference with blood pressure. The company expects to yield results from the study in the fourth quarter of 2006.
Merck pulled Vioxx, its blockbuster arthritis drug, off the market in September 2004 after a study showed it doubled the risk of heart attacks and strokes after 18 months' use.
"HCT 3012 could potentially replace Vioxx and generate yearly sales of between EUR1 billion and EUR2 billion," Garufi said.
Earlier Tuesday the company announced a collaboration agreement with Merck & Co. on the development of new antihypertensive drugs using NicOx's nitric oxide- donating technology.
Under the terms of the agreement, NicOx will receive an upfront payment of EUR9.2 million and is eligible for potential further milestone payments of EUR279 million.
The news sent NicOx shares soaring. At 1630 GMTthey stood 26.8% higher on the day at EUR8.33 in a lower Paris market.
NicOx shares had already gained more than 80% since the beginning of the month, after it agreed to license the same nitric oxide-donating technology to Pfizer Inc. (PFE) for ophthalmology use in a deal that netted them EUR23 million up front and up to EUR300 million in milestones.
"Merck & Co probably does not wish to see the closer links between NicOx and Pfizer result in the latter becoming the preferred partner for a license agreement on HCT 3012, given its commercial potential as a pain killer with no secondary effects on hypertensions," CM-CIC analyst Francois Hamon said.
But Garufi said that since HCT 3012 is in late stage of development, NicOx is not at the moment desperately looking for a partner. "We have been approached but if we were to sign a collaboration agreement now, we would want to keep most of the marketing rights."
In 2005, NicOx posted a 442% rise in revenues to EUR6.5 million and increased its operational expenses by EUR7.0 million to EUR22.8 million.
The company told Dow Jones Newswires its 2006 revenues should rise by 23% to EUR8 million while operational expenses should increased by 31% to EUR30 million.
NicOx, which is 60% owned by US investors, said it currently has a net cash position of around EUR74 million, including the Merck and Pfizer agreements.
-By Laetitia Fontaine, Dow Jones Newswires; +33 (0)1 40 17 17 40; laetitia.fontaine@dowjones.com
(END) Dow Jones Newswires
03-21-06 1155ET
Copyright (c) 2006 Dow Jones & Company, Inc.
