The biotech week kicked off with a bang, not because of any macro factors like a new Federal Reserve program of monetary stimulus, or economic data emanating from Europe. BioSante (NAS: BPAX) , up 22%, and Savient (NAS: SVNT) , up 13%, rose on no specific news. However, BioSante recently halted a safety trial for LibiGel, believing it has enough data to get an FDA green light, and Savient is awaiting EU approval for its gout drug Krystexxa.
Two other biotechs, though, had big moves today for company-specific reasons. Let's dive into each story and highlight key investor takeaways.
Complete Genomics (NAS: GNOM) finished up 13% after agreeing to be purchased by Chinese gene-sequencing operator BGI-Shenzen for $3.15 per share. While today's pop may seem small, shares sit only $0.13 under the deal price, and it's important to remember that it's more than a 50% premium to when Complete Genomics announced it was looking for acquirers.
Not that it's any consolation for long-term holders, as shares traded at about $15 as recently as last summer. The company remains wildly unprofitable, but its more accurate, albeit slower, technology gives BGI not only a U.S. presence but also leverage against Illumina (NAS: ILMN) , its main supplier. Although it will operate as a separate entity, it's still a disappointing end for the promising small sequencer.
What is the opposite of disappointing? Hitting an all-time high. Investors in Jazz Pharmaceuticals (NAS: JAZZ) are enjoying the sounds of success after a federal judge upheld the company's position, in a critical patent lawsuit for narcolepsy drug Xyrem. It's unlikely that the FDA will approve Roxane Laboratories' generic version given this ruling. Xyrem is Jazz's flagship product, and at $233.3 million in 2011 sales, it brought in the vast majority of its revenue. For the success of the company, defending that ground was a must.
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The article 2 Biotechs Trouncing the Market originally appeared on Fool.com.
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