BioWorld Today is now following up on the GTx Ostarine story. [H/T to an anonymous commenter, below.] GTx was down to about $3.83, at Friday's NASDAQ close -- from an intraday high $4.25 on Monday (before the Merck SEC Form 10-K disclosure was parsed):
. . . .Investors appear to be picking up on the news, slowly but surely. Shares of GTx slid about 14 percent between Merck's Monday filing and the close of business Wednesday. . . .
According to Morningstar Research, Ostarine drives "the lion's share" of GTx's valuation. . . .
GTx said it planned to meet with the FDA to discuss next steps. Stilwell confirmed that the meeting has taken place, but he declined to comment further ahead of the biotech's 2009 earnings call, slated for March 15. . . .
Instead, most had shifted their focus to the selective androgen receptor modulator (SARM), Ostarine.
The drug was partnered with Merck as part of a $500 million SARM collaboration. The deal included $40 million in cash up front, $30 million in equity, $15 million in research reimbursements and $422 million in milestone payments. Additionally, Merck was covering all development costs. . . .
Some analysts are suggesting that the entire Merck SARM deal "may be a causality of Merck's merger with Schering Plough." I think that is accurate.
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