Boston Scientific Buys Vessix, Novartis Is Optimistic: Healthcare Business Recap
Boston Scientific Corporation (NYSE:BSX) purchases the privately held Vessix Vascular for $125 million up front and milestone payments of as much as $300 million from 2013 to 2017. Vessix is a developer of the Vascular V2 Renal Denervation System that treats hypertension, which the buyer expects will “be a multi-billion dollar market by 2020.”
Novartis (NYSE:NVS) reports an optimistic prognosis in regards to its pipeline prior to its investor day, forecasting that it can come up with a minimum of 14 “blockbuster” drugs within five years and thus outweigh the expiry of patents on existing top-earning treatments. The firm’s most promising drugs include LCZ686 and serelaxin for heart failure, despite the latter’s mixed Phase III trial, and also medicines for psoriasis and multiple sclerosis.
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Shares of BioCryst Pharmaceuticals (NASDAQ:BCRX) lose more than 40 percent on the day, after the company ended the Phase III trials of its peramivir flu drug, as “the difference between peramivir and control groups for the primary endpoint was small.” The firm had received $234.8 million from the federal Biomedical Advanced Research & Development Authority to assist in the development of peramivir.
The Board of Directors of Alexion Pharmaceuticals (NASDAQ:ALXN) okays a $400 million stock buyback. The authorization is open-ended and does not set a timeframe for the purchases; the company anticipates the funding of all repurchases from cash on hand and also future cash flows from operations.
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