PARTNERSHIP RUMORED FOR ABGENIX, AMGEN.Byline: Evan Pondel Staff Writer Abgenix would be a logical fit for Amgen if the biotechnology behemoth behemoth (bē`hĭmŏth, bĭhē`–) [Heb.,=plural of beast], large, fanciful primeval monster, like Leviathan, evoking the hippopotamus mentioned in the Book of Job. decided to acquire the developer of antibody therapies, industry experts said Thursday. Shares of Abgenix jumped 9 percent this week amid mounting rumors that Amgen is interested in buying the Fremont-based developer of cancer combatants. The two companies already have an established relationship spanning about three years. ``I think it would make a lot of sense if Amgen acquired Abgenix,'' said Fariba Ghodsian, a portfolio manager at hedge fund hedge fund, in finance, a highly speculative, largely unregulated investment device. Originating in the 1950s, the funds "hedge" by offsetting "short" positions (borrowing a security and then selling it at a higher price before repaying the lender) against "long" Castle Creek Castle Creek may refer to:
Neither company would return phone calls seeking comment. Amgen licenses ABX-EGF to Abgenix, a product that targets a variety of cancers - including malignancies related to the lung, breast, bladder, prostate, head and neck. The drug is in the second phase of clinical trials, with Amgen having primary responsibility of the product's final stage of development. ``Theoretically, it's possible that Amgen would stand to gain something if it acquired Abgenix,'' said Dennis Harp, analyst with Deutsche Bank-North America in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of . ``And if Amgen made the acquisition with cash it wouldn't be significantly dilutive for the company.'' Abgenix has been focused on seeking partners to develop its antibody- based therapies. Harp said the company's lower value could also make it an attractive purchase for Amgen. Abgenix ended its first quarter with $345.7 million in cash, reporting a net loss of $33.2 million, or 38 cents a share, compared with a net loss of $56.6 million, or 65 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. in the same period a year ago. Abgenix's work with transgenic mice - animals genetically engineered genetically engineered adjective Recombinant, see there to have immune systems structurally similar to humans - is among the company's more notable characteristics. Known as XenoMouse, Abgenix utilizes these animals as a tool to test its products. Abgenix rose 11 cents to close at $11.26, while Amgen declined $1.15 to close at $66.06 on the Nasdaq market Thursday. Evan Pondel, (818) 713-3662 evan.pondel(at)dailynews.com |
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