News Column

Healthcare Review: Simulations Plus, Alexion Pharmaceuticals, Celgene, Organovo, Celsion

July 24, 2014

The stock market idled on Thursday afternoon as investors digested second-quarter results from companies across several industries, including Facebook, Ford and Caterpillar.

{nfg}Investors also had two economic reports to interpret, one on the housing market and one on the job market. The Dow Jones industrial average was flat at 17,089 as of 1:30 p.m. Eastern time. The Standard & Poor's 500 index rose two points, or 0.1 percent, to 1,989. The Nasdaq composite was up a point to 4,474.

Simulations Plus ($SLP) enters into an agreement to acquire Buffalo, NY-based Cognigen Corp. Under the terms of the agreement, it will pay Cognigen shareholders a total of $7M ($2.8M in cash and $4.2M of SLP stock). $1.8M of the total consideration will be held back for two years to satisfy indemnifiable claims that may arise pursuant to the agreement terms. Cognigen analyzes clinical trial data and generates reports tailored to regulatory agencies that save time and money by minimizing follow-up questions.

Alexion Pharmaceuticals ($ALXN) Q2 results: Net Product Sales: $512.5M (+38.5%); COGS: $39.6M (+0.5%); R&D Expense: $92.6M (+35.0%); SG&A Expense: $159.5M (+29.5%); Operating Income: $218.8M (+59.4%); Net Income: $166.5M (+73.6%); EPS: $0.83 (+72.9%); Quick Assets: $1,594.3M (+5.2%).

Celgene ($CELG) Q2 results: Total Revenues: $1,872.7M (+17.1%), Net Product Sales: $1,844.6M (+17.9%); COGS: 98.9M (+22.2%); R&D Expense: $456.9M (-0.3%); SG&A Expense: $491.8M (+17.6%); Operating Income: $825.1M (+28.5%); Net Income: $597.8M (+25.0%); EPS: $0.72 (-35.1%); Gross Profit: $1,773.8M (+16.8%); COGS: 5.3% (+4.4%); Gross Margin: 94.7% (-0.2%); Operating Earnings Yield: 44.1% (+9.7%); Net Earnings Yield: 31.9% (+6.8%); Quick Assets: $6,213.0M (+52.2%).

Shares of Organovo (NYSEMKT:ONVO)are up 17% on robust volume in response the signing of a research agreement with Johnson & Johnson unit Janssen Research and Development to evaluate the use of 3D bio-printed tissue in drug discovery. Financial terms are not disclosed.

Stoked by investors' ravenous response to Puma Biotechnology's success with neratinib, shares of Celsion (NASDAQ:CLSN) are up 15% premarket on good volume in response to its announcement of positive interim data from its Phase 2 clinical trial evaluating Thermodox in recurrent chest wall breast cancer. Of the 13 patients enrolled to date, 10 were eligible for evaluating efficacy. Six of the 10 patients experienced a stabilization of their highly refractory disease with a local response rate of 50% observed in all 10 patients. Three subjects had complete responses, two had partial responses and one had stable disease.

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Source: BioMed Reports

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