Diamonds and Dogs
Pfizer's back in the acquisition news. The failed merger between Allergan and Pfizer hasn't stopped Pfizer's management from wheeling and dealing. Anacor Pharmaceuticals (ANAC) is the diamond of the day up 57% after agreeing to merge with Pfizer (PFE) for $5.2 billion. The deal strengthens Pfizer's inflammation and immunology business. One analyst suggested a second higher bid may surface in the coming days for Anacor. Either way the merger news is music to Anacor shareholders' ears.
Picking a dog today is like fishing for a swordfish with a freshwater lure, it's nearly impossible, but unfortunately one biotech surfaced. Today's dog is Aduro Biotech (ADRO). The stock fell 16% making a new 52 week low after the clinical stage immune-oncology company released disappointing mid-stage trial results. The company was testing re-engineered bacteria to kill pancreatic cancer. The company was hoping to use a combination of CRS-207 drug plus the cancer vaccine GVAX Pancreas to yield a longer survival than other treatments. Patients unfortunately saw a median survival of just 3.8 months less than 5.4 months from using CRS-207 drug alone and the 4.6 months of standard chemotherapy. Disappointing news for shareholders and cancer patients.