Isis Pharmaceuticals Up on $4M Milestone Payment

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Shares of Isis Pharmaceuticals, Inc. (ISIS) were up 4.3% immediately after the company announced that it has earned a $4 million milestone payment from Achaogen, Inc. (AKAO). The milestone payment was earned on the initiation of a phase III study on plazomicin, an aminoglycoside being developed for the treatment of patients suffering from serious multi-drug resistant (MDR), gram-negative bacterial infections. The shares of the company are up 7% since the announcement.

The phase III superiority study will compare the efficacy and safety of plazomicin to colistin in patients with bloodstream infections and nosocomial pneumonia caused by carbapenem-resistant enterobacteriaceae (CRE.V).

The study will be conducted under the FDA’s special protocol assessment (SPA) program.

Isis Pharma’s association with Achaogen goes back to 2006 when the companies had entered into a license agreement for the development and commercialization of plazomicin. According to the deal, Isis Pharma is entitled to receive up to $19.5 million. Isis Pharma has already received $3 million and the recent $4 million as milestone payments under the deal. The company will also be eligible to receive up to $20 million on the achievement of milestones and royalties on sales of plazomicin.

We note that Isis Pharma has partnership agreements with leading health care companies like Biogen Idec Inc. (BIIB) and Genzyme, among others.

Isis Pharma’s agreements with these companies not only validate its antisense technology but also provide it with funds in the form of upfront, milestone and other payments.

Meanwhile, Isis Pharma has several candidates in mid-stage clinical development that could trigger future licensing opportunities.

Isis Pharma carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the health care sector include Gilead Sciences Inc. (GILD) and Biogen. Both hold a Zacks Rank #1 (Strong Buy).

Read the Full Research Report on ISIS
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Read the Full Research Report on BIIB
Read the Full Research Report on AKAO


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