PRAECIS SETTLES WITH AMGEN.Byline: Evan Pondel Staff Writer
THOUSAND OAKS Thousand Oaks, residential city (1990 pop. 104,352), Ventura co., S Calif., in a farm area; inc. 1964. Avocados, citrus, vegetables, strawberries, and nursery products are grown. - Praecis Pharmaceuticals will pay Amgen Inc. $13 million in settlement fees to finalize the drawn-out development of a prostate cancer prostate cancer, cancer originating in the prostate gland. Prostate cancer is the leading malignancy in men in the United States and is second only to lung cancer as a cause of cancer death in men. drug.
Last fall, Amgen Inc. dropped agreements with Waltham, Mass.-based Praecis to clamp down on business ventures that have stalled. The Food and Drug Administration previously rejected Praecis' application to market Plenaxis, a prostate cancer drug that was developed in conjunction with Amgen.
``The $13 million is a small amount of money for Amgen and probably a more reasonable amount for Praecis,'' said Stefan Loren, analyst with Legg Mason in Baltimore. ``But really, this is like the end of a divorce, and both parties never benefit.''
In a similar vein, Thousand Oaks-based Amgen ended a licensing agreement with Baltimore-based Guilford pharmaceuticals in September. The second phase of clinical trials with Gilford's Parkinson's disease Parkinson's disease or Parkinsonism, degenerative brain disorder first described by the English surgeon James Parkinson in 1817. When there is no known cause, the disease usually appears after age 40 and is referred to as Parkinson's disease. drug were not fruitful, Amgen officials said last fall.
Analysts say the termination of the Praecis and Guillord deals is Amgen's ``way of cleaning house.''
``And I don't think Amgen's losing any sleep over this,'' said Fariba Ghodsian, analyst with Roth Capital Partners Roth Capital Partners, LLC, is a full service Investment Banking firm, specializing in the small and micro cap markets. Roth’s focus, according to its official website, "has been, is, and will continue to be providing the full spectrum of investment banking services, LLC (Logical Link Control) See "LANs" under data link protocol.
LLC - Logical Link Control in Los Angeles. ``Disappointing FDA FDA
Food and Drug Administration
n.pr See Food and Drug Administration.
n.pr the abbreviation for the Food and Drug Administration. data led to Amgen's decision. They are moving on now.''
But for Praecis - a company that posted a net loss of $14.2 million in the second quarter 2002, versus a loss of $13 million in the same period a year ago - Plenaxis is not a lost cause.
The company continues to make developments on the drug. Bill Heiden, president and chief operating officer Chief Operating Officer (COO)
The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. of Praecis, said the company expects approval of Plenaxis by the middle of next year.
``And we're still open to work with a partner,'' he said. ``This recent settlement is the culmination of a long, drawn-out discussion with Amgen. The payment is really the final act.''
Praecis shares rose 8 cents, or 2.42 percent, to close at $3.38, while Amgen advanced $1.03, or 2.2 percent, to close at $47.70 Wednesday.