Outlook for Diagnostic Substances Industry
The ShinesRooms.com Provides Stock Research on Celldex Therapeutics Inc. and Synta Pharmaceuticals Corp.
NEW YORK, NY -- (Marketwire) -- 03/11/13 -- The pharmaceutical industry saw the expiration of patents on several blockbuster drugs in 2012, and the trend is expected to continue in 2013. This is likely to increase competition from generic drugs and prompt major pharma companies to boost their product pipeline in order to offset the negative impact of patent expirations. Apart from boosting product pipeline, major pharmaceutical companies are also expected to look at acquisitions of smaller biotechnology companies such as Celldex Therapeutics Inc. (NASDAQ: CLDX) and Synta Pharmaceuticals Corp. (NASDAQ: SNTA). Meanwhile, the healthcare industry is also undergoing a major transformation due to the Affordable Care Act (ACA).
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The expiration of patents on several blockbuster drugs has hurt top-line of a number of big pharma companies. This year will also see a number of patents on blockbuster drugs expire, which would have further negative impact on top-line of major pharmaceutical companies.
Companies have been looking to offset this by investing heavily in research and development to boost their product pipeline. Another major trend that is likely to emerge as a result of this development is an increase in acquisitions of small biotechnology companies that are developing potential blockbuster drugs.
Celldex Therapeutics Inc., which is engaged in the development and commercialization of several immunotherapy technologies for treatment of cancer and difficult-to-treat diseases, and Synta Pharmaceuticals Corp., which is engaged in the discovery, development and commercialization of small molecule for treatment of serious diseases, could become attractive takeover targets for big pharma companies looking to boost their product pipeline.
Last week, Celldex Therapeutics Inc. reported its financial results for the fourth quarter and full year ended December 31, 2012. The Needham, Massachusetts-based company posted a net loss of $16.8 million, or $0.27 per share, compared to a net loss of $12.7 million, or $0.29 per share reported for the same period in the previous year.
Anthony Marucci, CEO of Celldex Therapeutics Inc., said that the company ended 2012 reporting positive data from four clinical programs at major medical meetings, including final results from its Phase 2b study of CDX-011 in metastatic breast cancer. Marucci said that based on the CDX-011 final data package and subsequent discussions with the FDA, the company looks forward to initiating a randomized trial suitable for accelerated approval in patients with triple negative breast cancer that also over-express GPNMB in the second half of 2013.
Synta Pharmaceuticals Corp. is scheduled to release its fourth quarter financial results this week. The company will release its results on March 14, 2013. Back in December, the company had announced a $60 million registered direct common stock offering. The company's shares were priced at $8.60 in the offering. The company said that the net proceeds from the offering will be used for funding its operations, which include research and development, clinical trials, manufacturing, intellectual property protection and enforcement, and working capital, and for other general corporate purposes.
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