tag:blogger.com,1999:blog-207982082024-03-05T05:00:44.140-08:00Elan & The Alzheimer's vaccine bapineuzumabThe drug, named bapineuzumab, appears to slow the devastating effects of Alzheimer's by targeting amyloid plaques, which accumulate in the brain and detrimentally impact nerve cells in the brain. The plaque build-up results in symptoms of memory loss and difficulty performing routine tasks27 years on Broadwayhttp://www.blogger.com/profile/07182517222802573636noreply@blogger.comBlogger21125tag:blogger.com,1999:blog-20798208.post-16244342918105908922008-11-30T16:38:00.000-08:002008-11-30T16:38:55.878-08:00The girls at Bon Jovi concert winners from tixx.com give away<div style='text-align:center;margin:0px auto 10px;'><a href='https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiMnkr7PDkLa8OnnCyaPM7uMafgMpva4g-zFGfVagQYSpT-_LytMzKu-JkdYlyLgLdLQcMawdysqgDUv8lq3anpPxMM5ZlYWRPto7wj3Som_LSpvZafTJpFlGxqp9WtHnMqMyzQ/s1600-h/n7903254_30007344_9658%5B1%5D.jpg'><img src='https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiMnkr7PDkLa8OnnCyaPM7uMafgMpva4g-zFGfVagQYSpT-_LytMzKu-JkdYlyLgLdLQcMawdysqgDUv8lq3anpPxMM5ZlYWRPto7wj3Som_LSpvZafTJpFlGxqp9WtHnMqMyzQ/s400/n7903254_30007344_9658%5B1%5D.jpg' border='0' alt='' /></a> </div><br /><br /><br /><script src="http://digg.com/tools/diggthis.js" type="text/javascript"></script><div style='clear:both; text-align:CENTER'><a href='http://picasa.google.com/blogger/' target='ext'><img src='http://photos1.blogger.com/pbp.gif' alt='Posted by Picasa' style='border: 0px none ; padding: 0px; background: transparent none repeat scroll 0% 50%; -moz-background-clip: initial; -moz-background-origin: initial; -moz-background-inline-policy: initial;' align='middle' border='0' /></a></div>27 years on Broadwayhttp://www.blogger.com/profile/07182517222802573636noreply@blogger.com0tag:blogger.com,1999:blog-20798208.post-65307004914390383372008-09-09T08:18:00.000-07:002008-09-09T08:18:23.188-07:00Elan pharma<div style='text-align:center;margin:0px auto 10px;'><a href='https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjfpPcjCvAz8xdJruSjkuEdfQ3IAEnzPPdeuySIoOg7OoccYXXEznIw_REGYikAqqVdUT4hiawzJ4QM50hOiyPg4wdSbNIRgbvQOHnqUUsUWG8iTEyUWXXHz2c3rSlsCHYLIgg0/s1600-h/elan_30_jpm_2006.jpg'><img src='https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjfpPcjCvAz8xdJruSjkuEdfQ3IAEnzPPdeuySIoOg7OoccYXXEznIw_REGYikAqqVdUT4hiawzJ4QM50hOiyPg4wdSbNIRgbvQOHnqUUsUWG8iTEyUWXXHz2c3rSlsCHYLIgg0/s320/elan_30_jpm_2006.jpg' border='0' alt='' /></a> </div><br /><div style='text-align:center;margin:0px auto 10px;'><a href='https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi2gqcBW_4f7DUoJmRGQimECdX6l1RUAY7LKFUrkgcQIYTcAQro1wGPGKqTphP94zc9yyV249jAAJLqTitXP06ywkE3e4ft55I6r3hEwPXpRWeGZeusW-Zus6CGwZL4hfP3fd-R/s1600-h/elan_31_jpm_2006.jpg'><img src='https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi2gqcBW_4f7DUoJmRGQimECdX6l1RUAY7LKFUrkgcQIYTcAQro1wGPGKqTphP94zc9yyV249jAAJLqTitXP06ywkE3e4ft55I6r3hEwPXpRWeGZeusW-Zus6CGwZL4hfP3fd-R/s320/elan_31_jpm_2006.jpg' border='0' alt='' /></a> </div><br /><div style='text-align:center;margin:0px auto 10px;'><a href='https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEggGBEITZKPg_DCQlNrbCdUhQg8lKEfTtBfThX3F2qxebwdzKC6Xq5XKH7nLau_Eb6soxnhRRvIfu4uRqoE2M1VAWF6w1OLLRBWBBDHkEP-27YV4b5De_JKaKND_zCQAAy6Ufkf/s1600-h/elan_32_jpm_2006.jpg'><img src='https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEggGBEITZKPg_DCQlNrbCdUhQg8lKEfTtBfThX3F2qxebwdzKC6Xq5XKH7nLau_Eb6soxnhRRvIfu4uRqoE2M1VAWF6w1OLLRBWBBDHkEP-27YV4b5De_JKaKND_zCQAAy6Ufkf/s320/elan_32_jpm_2006.jpg' border='0' alt='' /></a> </div><br /><div style='text-align:center;margin:0px auto 10px;'><a href='https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiYx7UJktjGnxSBU9nkAvhPQ3z83foZ_axd7W-NAqEUQc4lCgaTdh4QaDmo0OI3y6D3kOk95GUTBgdcFnhvJF6TSTSJ8JlbgB5axmUQ4qbH5dLw3brgYlVj5aQg-N-Py093bUR4/s1600-h/elan_3_jpm2006.jpg'><img src='https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiYx7UJktjGnxSBU9nkAvhPQ3z83foZ_axd7W-NAqEUQc4lCgaTdh4QaDmo0OI3y6D3kOk95GUTBgdcFnhvJF6TSTSJ8JlbgB5axmUQ4qbH5dLw3brgYlVj5aQg-N-Py093bUR4/s320/elan_3_jpm2006.jpg' border='0' alt='' /></a> </div><div style='clear:both; text-align:CENTER'><a href='http://picasa.google.com/blogger/' target='ext'><img src='http://photos1.blogger.com/pbp.gif' alt='Posted by Picasa' style='border: 0px none ; padding: 0px; background: transparent none repeat scroll 0% 50%; -moz-background-clip: initial; -moz-background-origin: initial; -moz-background-inline-policy: initial;' align='middle' border='0' /></a></div>27 years on Broadwayhttp://www.blogger.com/profile/07182517222802573636noreply@blogger.com0tag:blogger.com,1999:blog-20798208.post-38879255270431922512008-07-03T03:35:00.000-07:002008-07-03T03:36:17.431-07:00Elan, Wyeth Study Finds Alzheimer’s Drug Works in ApoE4 Non-CarriersElan, Wyeth Study Finds Alzheimer’s <br />Drug Works in ApoE4 Non-Carriers<br /><br />[July 2, 2008]<br /><br /> <br /> Welcome, <br /><br />Printer-Friendly Version<br />Ask the Editor<br />RSS Feed <br /> <br /><br /><br /> <br /><br /><br /> <br /> In This Week's Issue <br />KRAS Dx Market Emerges In US as ASCO Data Support Companion Testing for Colon Cancer<br /><br />Elan, Wyeth Study Finds Alzheimer’s Drug Works in ApoE4 Non-Carriers<br /><br />With GINA Passed, Focus Should Now Be On Educating Docs: NEJM Article<br /><br />Invitrogen, Genome Quebec, Montreal Heart Institute, Dako, Bristol-Myers Squibb BioTrove, Gene Express, National Cancer Institute, Mount Sinai School of Medicine, Fraunhofer Institute, Affymetrix<br /><br />Rules-Based Medicine’s Rat Kidney MAP<br /><br />Fredrick Clerie, Evan Jones, Robert Friedman, Karen Nelson, Samuel Levy, Yu-Hui Rogers<br /> <br /> <br /><br /><br /> <br />By Turna Ray <br /><br /><br />Elan and Wyeth recently announced results from Phase II clinical trials for the investigational Alzheimer’s drug bapineuzumab that shows the drug may be beneficial in patients who are non-carriers of the ApoE4 allele. <br /> <br />The study partners told Pharmacogenomics Reporter this week that it is too early to speculate whether they will develop a companion diagnostic for bapineuzumab. However, in Phase III studies, which began enrolling patients in December, patients will be stratified into ApoE carriers and non-carriers via blood sample-based ApoE genotyping.<br /> <br />Although the 18-month Phase II trial did not reach statistical significance on primary efficacy endpoints in the overall study population, post-hoc analyses showed that bapineuzumab yielded “statistically significant and clinically meaningful benefits” in ApoE4 non-carriers on a number of primary endpoints.<br /> <br />These included the Alzheimer's Disease Assessment Scale (ADAS-cog), the Neuropsychological Test Battery (NTB), the Mini Mental State Examination (MMSE), and the Clinical Dementia Rating - Sum of Boxes (CDR-SB).<br /> <br />“A favorable directional change” was also seen on the Disability Assessment Scale for Dementia (DAD), “although this was not statistically significant,” Elan reported in a statement. <br /> <br />Phase II study results supported the companies’ decision to move ahead with Phase III studies. <br /> <br />Wyeth and Elan declined to discuss whether bapineuzumab would be specifically indicated in the ApoE4 non-carrier population. “It would be inappropriate to speculate about potential labeling based on preliminary results of a Phase II study,” a Wyeth spokesperson told Pharmacogenomics Reporter. <br /> <br />While Wyeth and Elan also are not prepared to discuss the possibility of a companion diagnostic for bapineuzumab, there is already a commercially available ApoE4 test available on the market. Athena Diagnostics markets homebrew tests for the early onset of Alzheimer’s disease and the evaluation of Alzheimer’s based on its ADmark brand of assays. <br /> <br />The evaluation test detects ApoE2, ApoE3, and ApoE4 alleles through ELISA and Serial Invasive Signal Amplification Reaction. The early-onset test detects mutations in the PS-1, PS-2, and APP genes through PCR and DNA sequencing.<br /> <br />Phase II Results<br /> <br />Wyeth and Elan are touting bapineuzumab as “the first humanized monoclonal antibody in late-stage investigation for the potential treatment for Alzheimer's disease.” Bapineuzumab is designed to clear toxic beta amyloid proteins, comprising neuritic plaques in the brain, which are implicated in Alzheimer's disease pathology.<br /> <br />The study involving 240 mild-to-moderate Alzheimer’s patients was carried out at 29 sites in the US and tested four doses of bapineuzumab (0.15 mg/kg, 0.5 mg/kg, 1.0 mg/kg and 2.0 mg/kg) with approximately 60 patients in each dose cohort.<br /> <br />As Alzheimer's disease progresses, patients lose brain volume and gain ventricular volume. Preliminary evaluation of MRI results in the study showed that ApoE4 non-carriers, which represent between 40 percent and 70 percent of the Alzheimer’s disease population, had less brain-volume loss among bapineuzumab-treated patients versus placebo patients. <br /> <br /><br />--------------------------------------------------------------------------------<br />“AIP research focuses on the beta amyloid hypothesis, as the companies believe that enhancing the clearance of beta amyloid in the brain may provide a new treatment approach for Alzheimer's disease.” <br />--------------------------------------------------------------------------------<br /> <br />ApoE4 non-carriers treated with the drug also had less increases in ventricular volume over placebo-treated patients. While the former finding was statistically significant, the latter was not, the companies reported. Additionally, MRI results showed favorable treatment-related clinical changes in non-carriers.<br /> <br />In carriers of the ApoE4 allele, no clinical benefits or statistically significant effects were observed on efficacy endpoints or the brain-volume endpoint. However, “preliminary analyses suggest possible increase of ventricular volume in treated patients versus placebo patients,” Elan said in a statement, but added that the “clinical significance of this finding is currently unclear and analyses are ongoing.”<br /> <br />The randomized, double-blind, placebo-controlled Phase III program will involve 4,000 patients with mild-to-moderate Alzheimer’s disease. The studies will be carried out at 350 sites worldwide for 18 months of efficacy evaluation. <br /> <br />According to the Wyeth spokesperson, each of the four Phase III studies will have two primary endpoints, one cognitive and one functional, which will be evaluated using neuropsychiatric scales and imaging and biomarker analysis, as well as other methods.<br /> <br />There will be two studies in carriers of the ApoE4 allele, while two studies will focus on non-carriers. For both cohorts, one study will be in North America, and another will enroll patients from the EU, Australia, and South Africa. <br /> <br />In Phase II studies, adverse events were common in both placebo and bapineuzumab-treated patients, with a similar number of ApoE4 non-carriers and carriers experiencing serious adverse events. However, researchers observed serious adverse events more frequently in bapineuzumab-treated ApoE4 carriers than in placebo patients. <br /> <br />Particularly, vasogenic edema was reported in the treated population with an increased frequency in carriers and at higher doses of bapineuzumab. No cases of the adverse event were reported in placebo patients. <br /> <br />“In the ongoing Phase 3 studies, carriers of the ApoE4 allele are being treated with a lower dose to minimize the risk of vasogenic edema,” Elan reported. “The overall safety findings from this Phase II trial support their prior decision to move to Phase III studies.”<br /> <br />The Collaboration<br /> <br />Bapineuzumab is the lead compound in Wyeth and Elan’s Alzheimer's Immunotherapy Program, formed in 2000. Under the collaboration, the companies aim to research, develop, and commercialize immunotherapeutic approaches to prevent the onset of Alzheimer's disease. <br /> <br />“AIP research focuses on the beta amyloid hypothesis, as the companies believe that enhancing the clearance of beta amyloid in the brain may provide a new treatment approach for Alzheimer's disease,” the Wyeth spokesperson said. <br /> <br />While Elan and Wyeth are claiming that bapineuzumab is the first monoclonal antibody in late stage clinical trials for Alzheimer’s, they are not the only companies looking at the role of ApoE4 alleles to develop a drug for the indication.<br /> <br />Broomfield, Colo.-based Accera and researchers at the University of Washington in 2002 studied the efficacy of a medical food product, called Ketasyn, in a subgroup of patients lacking the ApoE4 genotype. Accera is planning to submit its application sometime this summer to the US Food and Drug Administration for Ketasyn, an orally administered liquid compound that provides glucose-deprived brain cells an alternative energy source [see PGx Reporter 11-07-2007]. <br /> <br />An Elan official told Pharmacogenomics Reporter that there were other treatments for Alzheimer’s under development as part of the AIP collaboration. However, the official did not elaborate on these projects, saying that the compounds are in various stages of clinical and pre-clinical development.27 years on Broadwayhttp://www.blogger.com/profile/07182517222802573636noreply@blogger.com0tag:blogger.com,1999:blog-20798208.post-82432448369354987242008-06-23T11:27:00.000-07:002008-06-23T11:28:00.663-07:00Elan Corp (ELN) Higher After Goldman Adds The Stock To Its Conviction Buy ListElan Corp (ELN) Higher After Goldman Adds The Stock To Its Conviction Buy List<br /><br />More News related to ELN<br />Elan Corp (ELN) Higher After Goldman Adds The Stock To Its Conviction Buy List <br />Goldman Sachs Added Elan Corp. plc (ELN) to its Conviction Buy List <br />Mergent, Inc. Announces Quarterly Rebalancing of HealthShares(TM) Indexes <br />Pre-Open Movers 6/17: Mentor Graphics (MENT) Up on Buyout Offer, Infinera (INFN) Lower on Guidance <br />Elan (ELN) and Wyeth (WYE) Report Results from Phase 2 Trial on Bapineuzumab for Alzheimer's <br />More News related to ELN <br />More News related to WYE<br />Elan Corp (ELN) Higher After Goldman Adds The Stock To Its Conviction Buy List <br />Trubion Pharmaceuticals Announces Extension of Research Period Under Its Wyeth Collaboration <br />Amgen and Wyeth Statement on Outcome of Dermatologic and Ophthalmic Drugs Advisory Committee (DODAC) Meeting <br />Pre-Open Movers 6/17: Mentor Graphics (MENT) Up on Buyout Offer, Infinera (INFN) Lower on Guidance <br />Elan (ELN) and Wyeth (WYE) Report Results from Phase 2 Trial on Bapineuzumab for Alzheimer's <br />More News related to WYE <br /><br />More News related to Analyst Comments<br />Goldman Sachs (GS) Makes The Wrong Call On Financials <br />Citi Reiterates 'Buy' Rating on WebMD (WBMD) <br />AmTech Maintains Focus List Buy on Micron (MU) Ahead of Q3 Earnings <br />Ford (F) volatility Elevated at 65 on lower financial outlook <br />Elan Corp (ELN) Higher After Goldman Adds The Stock To Its Conviction Buy List <br />More News related to Analyst Comments <br />June 23, 2008 11:50 AM EDT <br /><br />Shares of Elan Corp. plc (NYSE: ELN) are 3% mid-day today after Goldman Sachs added the stock to their Conviction Buy List, citing prospects of the company's Alzheimer's drug bapineuzumab.<br /><br />Recently, Elan and partner Wyeth (NYSE: WYE) announced encouraging preliminary findings from a Phase 2 study of bapineuzumab in patients with mild to moderate Alzheimer's disease. In the 18-month trial, bapineuzumab appeared to have clinical activity in treating Alzheimer's disease.<br /><br />The Goldman analyst suggested bapineuzumab could also be effective in pre-Alzheimer's disease conditions.27 years on Broadwayhttp://www.blogger.com/profile/07182517222802573636noreply@blogger.com0tag:blogger.com,1999:blog-20798208.post-85844452413271209602008-06-23T09:37:00.000-07:002008-06-23T09:40:18.964-07:00Elan's Researchers have uncovered a new clue to the cause of Alzheimer's disease.Key Executives for ELAN PLC (ELN): Dr. Dennis J. Selkoe, MD<br />View All Key Executives<br /> <br />Dr. Selkoe was appointed a director of Elan in July 1996, following our acquisition of Athena Neurosciences, where he served as a director since July 1995. Dr. Selkoe was a founder of Athena Neurosciences. Dr. Selkoe, a neurologist, is a professor of neurology and neuroscience at Harvard Medical School. He also serves as co-director of the Center for Neurologic Diseases at The Brigham and Women's Hospital. <br /><br />New clue to Alzheimer's found<br />By RANDOLPH E. SCHMID – 21 hours ago <br /><br />WASHINGTON (AP) — Researchers have uncovered a new clue to the cause of Alzheimer's disease.<br /><br />The brains of people with the memory-robbing form of dementia are cluttered with a plaque made up of beta-amyloid, a sticky protein. But there long has been a question whether this is a cause of the disease or a side effect. Also involved are tangles of a protein called tau; some scientists suspect this is the cause.<br /><br />Now, researchers have caused Alzheimer's symptoms in rats by injecting them with one particular form of beta-amyloid. Injections with other forms of beta-amyloid did not cause illness, which may explain why some people have beta-amyloid plaque in their brains but do not show disease symptoms.<br /><br />The findings by a team led by Dr. Ganesh M. Shankar and Dr. Dennis J. Selkoe of Harvard Medical School were reported in Sunday's online edition of the journal Nature Medicine.<br /><br />The researchers used extracts from the brains of people who donated their bodies to medicine.<br /><br />Forms of soluble beta-amyloid containing different numbers of molecules, as well as insoluble cores of the brain plaque, were injected into the brains of rats. There was no detectable effect from the insoluble plaque or the soluble one-molecule or three-molecule forms, the researchers found.<br /><br />But the two-molecule form of soluble beta-amyloid produced characteristics of Alzheimer's in the rats, they reported.<br /><br />Those rats had impaired memory function, especially for newly learned behaviors. Studies were also done on mice and when their brains were inspected, the density brain cells were reduced by 47 percent. The beta-amyloid seemed to affect synapses, the connections between cells that are essential for communication between them.<br /><br />The research, for the first time, showed the effect of a particular type of beta-amyloid in the brain, said Dr. Marcelle Morrison-Bogorad, director of the division of neuroscience at the National Institute on Aging, which helped fund the research.<br /><br />It was surprising that only one of the three types had an effect, she said in a telephone interview.<br /><br />Morrison-Bogorad said the findings may help explain the discovery of plaque in the brains of people who do not develop dementia. For some time, doctors have wondered why they find some brains in autopsy that are heavily coated with beta-amyloid, but the person did not have Alzheimer's.<br /><br />The answer may lie in the two types of beta-amyloid that did not cause symptoms.<br /><br />Now, the question is why one has the damaging effect and not others.<br /><br />"A lot of work needs to be done," Morrison-Bogorad said. "Nature keeps sending us down paths that look straight at the beginning, but there are a lot of curves before we get to the end."<br /><br />Dr. Richard J. Hodes, director of the National Institute on Aging, said that "while more research is needed to replicate and extend these findings, this study has put yet one more piece into place in the puzzle that is Alzheimer's."<br /><br />In addition to the Institute on Aging, the research was funded by Science Foundation Ireland, Wellcome Trust, the McKnight and Ellison foundations and the Lefler Small Grant Fund.27 years on Broadwayhttp://www.blogger.com/profile/07182517222802573636noreply@blogger.com0tag:blogger.com,1999:blog-20798208.post-74444345663590693492008-04-25T03:53:00.000-07:002008-04-25T03:54:17.523-07:00Wyeth (WYE): Speculative play on Alzheimer'sWyeth (WYE): Speculative play on Alzheimer's<br />Posted Apr 23rd 2008 12:36PM by Steven Halpern<br /><br />Regarding his latest new buy recommendation -- Wyeth (NYSEL WYE) -- biotech expert Michael Shulman states, "OK, I know what you're thinking. Wyeth?! It's a lousy big pharma with a stock price that's down 12% in the past 10 years."<br /><br />Nevertheless, in his ChangeWave Biotech Investor he explains, "I like Wyeth for two very good reasons: It's a great play for the current market, and it's a good speculative play on disease breakthroughs."<br /><br />"Believe it or not, WYE is a cash-rich big pharma selling below its potential breakup value and it has a very good Alzheimer's disease treatment in its pipeline. The Alzheimer's treatment is the primary reason for this recommendation. <br /><br />"I've written extensively about Alzheimer's and I've kept an eye on this particular Wyeth drug and the potential it has for success. <br /><br />"The Wyeth drug in question is a genetically engineered antibody called bapineuzumab. It's the second formulation of a 'vaccine' that showed dramatic improvements in cognition and reduction in brain plaques (as determined by autopsy) in its original formula. <br /><br /><br />"Unfortunately the first formulation also generated encephalitis (brain swelling) in a meaningful number of patients and the trial was suspended. <br /><br />"The second-generation product is a passive, versus active, vaccine. It doesn't trigger the aggressive immune response from the body that was the cause, Wyeth believes, of the encephalitis. <br /><br />"The early Phase II results haven't been published, but they must have been great because the company is already going ahead with a very expensive Phase III trial with 4,100 patients.<br /><br />"Meanwhile, Wyeth has major marketplace winners such as Enbrel, a $5-billion drug for arthritis and psoriasis, and anti-depressant Effexor with $4 billion in sales. The company also has $3 billion in sales of consumer products such as Advil and Preparation H. <br /><br />"The company has $22 billion in sales; $3.40-$3.60 in profits per share, giving it a P/E of 3; a 2.5% dividend; more cash than debt; and 72% gross profit margins. It is everything you would expect a big pharma outfit to be -- but up to one-third of revenues now come from biotech products such as Enbrel. <br /><br />"Make no mistake, however. As far as I'm concerned this investment recommendation is about one drug: bapineuzumab. At this point I believe the possibilities for bapineuzumab (let alone the rest of the pipeline) are not really factored into the stock price. <br /><br />"If bapineuzumab fails in trial, the stock will take a modest hit -- maybe a few of points -- and if WYE posts strong results in June it will start a stock run that could push it back to the mid-$60s. Anyway we look at it that's a very good risk/reward ratio for a recession-proof, cash-rich company."<br /><br />Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.27 years on Broadwayhttp://www.blogger.com/profile/07182517222802573636noreply@blogger.com0tag:blogger.com,1999:blog-20798208.post-6557385562039509242008-04-08T14:30:00.000-07:002008-04-08T14:32:42.207-07:00Irish newspaper talks about Elan & Wyeth drugAlzheimer's prediction helps Elan jump 6pc<br />By Ailish O'Hora <br />Tuesday April 08 2008 <br />http://www.independent.ie/business/irish/alzheimers-prediction-helps-elan-jump-6pc-1341260.html<br /><br /><br />Shares in Elan finished yesterday up over 6pc at €14.72 on the back of estimates that an Alzheimer's treatment co-developed by the Irish drugmaker and international giant Wyeth could notch up sales of over $13bn and surpass Pfizer's cholesterol treatment Lipitor to become the biggest drug of all-time.<br /><br />According to a report in the influential Wall Street publication Barron's, healthcare investor Larry Feinberg, whose flagship healthcare hedge fund Oracle Investment Management has averaged 21pc over the past 18 years, said that the effect on Wyeth's shares could be a 50pc increase over the next year.<br /><br />In early 2002, Wyeth was forced to halt an Alzheimer's vaccine trial after 18 out of 300 patients developed encephalitis. But the report stated that the two companies are sponsoring research aimed at neutralising the adverse reaction.<br /><br />Wyeth researchers believe that what caused the brain swelling was the use of an "active" inoculation that mobilises the body's immune system to produce antibodies. So in 2005, they began testing a "passive" vaccine that supplies antibodies directly to fight senile plaques in the brain -- a characteristic feature of Alzheimer's Disease.<br /><br />The US Federal Drug Administration (FDA) fast-tracked the study after patients seemed to show signs of mental improvement from even moderate doses of the drug. Results of the Phase II trial on 240 patients are due in June and there is also an ongoing Phase III trial, involving 4,100 people and costing an estimated $300m -- although it will probably be years before the treatment is fully tested and reviewed by regulators. Other biotechnology companies are also testing Alzheimer's treatments. <br /><br />Elan is probably more famous for its multiple sclerosis treatment Tysabri which is also used to treat Crohn's disease.<br /><br />Shares in Elan tumbled back in February when it emerged that Tysabri could cause significant liver damage in patients.<br /><br />At the time, the US regulator, the Food and Drug Administration (FDA) announced that Elan and its US partner Biogen Idec had written to doctors to warn them of the danger.<br /><br />Tysabri was taken off the market in 2005 shortly after its initial launch after three cases of a potentially fatal brain infection known as progressive multifocal leukoencephalopathy emerged. <br /><br />The drug returned to the market in 2006 with limits after the FDA decided MS patients were willing to accept the risks in light of possible benefits.<br /><br />- Ailish O'Hora27 years on Broadwayhttp://www.blogger.com/profile/07182517222802573636noreply@blogger.com0tag:blogger.com,1999:blog-20798208.post-52681307431331740192008-04-08T05:24:00.000-07:002008-04-08T05:25:44.477-07:00Wyeth and Elan Trade on CNBC fastmoney April 7th 2008Wyeth and Elan Trade<br />Both stocks of Wyeth (WYE) and Elan (ELN) spiked on Monday after news broke of a new Alzheimer's drug. Kris Jenner, M.D., lead portfolio manager at T. Rowe Price Health Science Fund joined the "Fast Money" crew to discuss his take on the news. Jenner explained that the drug AAB-001 could be the most advanced drug for Alzheimer's and information will come out over the next 3 months that will lead to the probability of the drug succeeding in phase 3 trials. He went on to explain that drug could be a blockbuster with a market of 7 million Alzheimer's patients in the U.S and Western Europe and the costs for the therapy at $10,000 a year. Jenner said the chances are 50/50 the drug will be approved. The companies that could benefit from the news are Elan (ELN) and Wyeth (WYE) with Elan having the biggest potential upside. Najarian advised investors to look at Myriad (MYGN) and Eli Lilly (LLY), which also have Alzheimer's drugs in their pipelines27 years on Broadwayhttp://www.blogger.com/profile/07182517222802573636noreply@blogger.com0tag:blogger.com,1999:blog-20798208.post-91875794508955769242008-04-07T17:29:00.000-07:002008-04-07T17:31:17.831-07:00Alzheimer's Miracle? CNBC fast money crew talks about ElanAlzheimer's Miracle? <br />Posted By:Lee Brodie<br />Topics:Stock Market | Stock Picks<br />Sectors:Pharmaceuticals<br />Companies:Eli Lilly and Company | Myriad Genetics Inc | Wyeth | Elan Corporation, plc<br /><br /><br /><a href="http://www.cnbc.com/id/23996775">click here to watch the video </a><br />Shares of Wyeth and Elan surged Monday on the promise of a new Alzheimer's drug. <br /><br />Kris Jenner, M.D., lead portfolio manager for the T. Rowe Price Health Sciences Fund joins the panel for this conversation. Following is a summary of his main points.<br /><br />Tell us about the drug.<br /><br />AAB-001 is probably the most advanced product for Alzheimer’s, Jenner explains. And we’re going to get information over the next two months that will tell us about the probability of its success in Phase 3 trials.<br /><br />The market is excited because there are approximately 7 million Alzheimer’s patients in the US and Western Europe. If only 1 million of those individuals get on this therapy at $10,000/ year that’s a 10 billion dollar drug!<br /><br />Is it a cure?<br /><br /><br /><br />It is not, replies Jenner. But it has the opportunity to really delay the very devastating effects. While not a cure, it could be a tremendous advance forward.<br /><br />What are the odds it will make it to market?<br /><br />I think the probabilities are good, replies Jenner, greater than 50/50. But we’re at a pivotal point so buyer beware. However, I think the upside here is unlike many other pharma opportunities.<br /><br />Which comapny benefits most?<br /><br />Elan Elan Corp PLCELN<br />23.17 1.50 +6.92% NYSE <br /> <br /> <br />Quote | Chart | News | Profile <br />[ELN 23.17 1.50 (+6.92%) ] will have much higher reward but also higher risk, he says. With Wyeth WyethWYE<br />44.3 2.74 +6.59% NYSE <br /> <br /> <br />Quote | Chart | News | Profile <br />[WYE 44.3 2.74 (+6.59%) ] you would participate but not have the same upside. We have a larger position in Elan<br /><br />On a related note, Myriad Myriad Genetics IncMYGN<br />40.85 0.17 +0.42% NASDAQ <br /> <br /> <br />Quote | Chart | News | Profile <br />[MYGN 40.85 0.17 (+0.42%) ] and Lilly Eli Lilly and CoLLY<br />53.06 0.78 +1.49% NYSE <br /> <br /> <br />Quote | Chart | News | Profile <br />[LLY 53.06 0.78 (+1.49%) ] also have other Alzheimer’s drugs in the pipeline and could also be worth a look, adds Pete Najarian.27 years on Broadwayhttp://www.blogger.com/profile/07182517222802573636noreply@blogger.com0tag:blogger.com,1999:blog-20798208.post-61120396758063988372008-04-07T15:43:00.001-07:002008-12-10T04:49:22.137-08:00Attacking Alzheimer's Elan's Dennis Selkoe<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj8445oVb2LWObzDdAHzCVVp2SqyHPkn96URCRtHXRbDIiDQEi7xbYe7gJyrNnmFJX3IumpfarSWbPj7DohmySbvgGkNI99evsbKX2reodt_SVgsryqaKcgPZbxuacz_ZOz3YoU/s1600-h/forbes_0421_p094_f1.jpg"><img style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj8445oVb2LWObzDdAHzCVVp2SqyHPkn96URCRtHXRbDIiDQEi7xbYe7gJyrNnmFJX3IumpfarSWbPj7DohmySbvgGkNI99evsbKX2reodt_SVgsryqaKcgPZbxuacz_ZOz3YoU/s400/forbes_0421_p094_f1.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5186637828906153154" /></a><br /><br /> <br />Executive Health<br />Attacking Alzheimer's<br />Robert Langreth 04.21.08, 12:00 AM ET<br /><br />Dennis Selkoe <br /> <br /> <br /><br /> <br />The drug industry has bet heavily on one theory about the disease. What if that theory is wrong?<br />In 1906 a German psychiatrist described the puzzling case of a 56-year-old woman who had just died after years of progressive memory loss and hallucinations. An autopsy found her brain shriveled and filled with strange protein deposits. The disease, which took on the name of the psychiatrist, Alois Alzheimer, still mystifies doctors a century later. Researchers still debate its cause. And there are no treatments that stop its relentless and fatal course.<br /><br />But that could be about to change. In a multibillion-dollar gamble, some of the world's biggest drug companies have begun final-stage trials of drugs that aim to slow or halt the progression of the devastating dementia. The products of over two decades of research, these drugs target the prime suspect in Alzheimer's disease, the telltale amyloid clumps spotted by the German doctor.<br /><br />By clearing out those deposits or halting their production, researchers hope to slow brain cell death and alter the course of the illness. Even a drug that eased the decline only modestly could keep millions of patients out of nursing homes for years. "If we could keep people who are still functioning from having any further decline for five years--then they would probably die from something else," says Todd Golde, a neuroscientist at the Mayo Clinic, in Jacksonville, Fla. "The impact would be immeasurable."<br /><br />Ultimately, doctors hope to use the disease-slowing drugs in conjunction with new brain-scanning methods being tested at General Electric (nyse: GE - news - people ) and elsewhere that will detect early signs of amyloid buildup. People with mild memory loss will get a brain scan to see if plaques are present. If they are, they'll then start the drugs right away to stop the disease in its tracks.<br /><br />"Pretty much every pharmaceutical company in the world" is testing amyloid-busting drugs, says Menelas Pangalos, vice president for neuroscience research at the pharmaceutical firm Wyeth. Wyeth has spent over $500 million on Alzheimer's since 2001 and has four antiamyloid drugs in human testing. Its lead one is an antibody developed with Elan Corp. (nyse: ELN - news - people ) that has been shown to destroy 80% of the amyloid in the brains of affected mice.<br /><br />Eli Lilly (nyse: LLY - news - people ) is hot on Wyeth's heels. Lilly has pursued Alzheimer's for nearly a quarter of a century. Its pill blocks an enzyme involved in amyloid production. Says Lilly's research chief, Steven Paul, "If amyloid isn't connected to the disease pathogenesis, God is playing a fairly mean trick on us." A dark horse in the race is Myriad Genetics (nasdaq: MYGN - news - people ), whose Flurizan pill aims to prevent the body from producing the most toxic form of amyloid.<br /><br />But by focusing so heavily on amyloid, the drug industry is taking a big risk. Even after decades of research, the case that amyloid buildup is the main cause of the disease is hardly airtight. Studies have found that some people who die from other diseases, with no dementia, still have amyloid in their brains.<br /><br />The trials "are based largely on theory and hope--and some rather considerable business considerations," says University of Southern California psychiatrist Lon Schneider, a consultant to several companies. "None of the drugs have shown evidence of efficacy yet." Geneticist John Hardy, one of the first to finger amyloid as a suspect, puts the odds at 50-50 that one of the antiamyloid drugs will work. "We are all on tenterhooks," he says.<br /><br />Some researchers argue that amyloid is one of many factors in the disease and may not be the primary one for most people. "We may get rid of plaques, but it may not do anything," says John Trojanowski of the University of Pennsylvania.<br /><br />Another potential culprit in the brains of Alzheimer's patients is neurofibrillary tangles. And other researchers are examining the role of a bad gene, apolipoprotein E e4. It can increase the risk of Alzheimer's disease tenfold.<br /><br />Proponents of the amyloid theory "listen to each other and reinforce each other, and after a while it becomes more of a religious belief," says Zaven Khachaturian, former head of Alzheimer's research at the National Institutes of Health. He thinks companies should diversify--but until recently "if you spoke against amyloid it was like committing religious heresy."<br /><br />The stakes could hardly be higher. Five million Americans suffer from Alzheimer's; the number could surge to 7.7 million by 2030. One in six women and one in ten men will get it. Existing drugs such as Aricept merely improve symptoms temporarily without slowing brain cell death. Drugs that slowed the decline would be surefire bestsellers.<br /><br />Myriad will wrap up its final-stage trial any month now. Even more intensely awaited are the results of a second-stage trial of Wyeth's antibody, bapineuzumab. Both companies may reveal results this summer. Says Khachaturian, "If these trials work, it will open the floodgates. If they don't, we are back to square one."<br /><br />Harvard neurologist Dennis Selkoe is a champion of the amyloid theory. A charismatic and convincing speaker, he has been touting it for two decades. "There's hardly a piece of evidence that doesn't support the idea that amyloid is the cause," he insists. "The naysayers say, 'People like you pollute the field,' and 'People are hoodwinked.' But [scientists] aren't that stupid. They vote with their test tubes, and they have put their test tubes into a huge number of experiments over this amyloid hypothesis."<br /><br />Selkoe teamed up with venture capitalists in 1986 to found Athena Neurosciences, now part of Elan Corp. of Dublin, Ireland. He stayed at Harvard but serves as an Elan board member.27 years on Broadwayhttp://www.blogger.com/profile/07182517222802573636noreply@blogger.com0tag:blogger.com,1999:blog-20798208.post-39896852980306246782008-04-07T15:37:00.001-07:002008-04-07T15:37:59.611-07:00Elan Surges on Barron's CommentaryElan (ELN) NewsBite - Elan Surges on Barron's Commentary <br />Posted on Monday, April 07, 2008 12:10 PM <br />Elan Corp. (ELN) opened at 22.78. So far today, the stock has hit a low of 22.35 and a high of 23.23. ELN is now trading at 22.92, up 1.25 (5.49%). The stock hit its 52 week high of 26.88 in February and set its 52 week low of 13.62 in May. ELN has been climbing for the past year. Elan shares have been soaring today after a Barron's story revealed that shares of its partner Wyeth (WYE) could rise as much as 50% if an Alzheimer's treatment that it is developing proves successful. For the moment, Wyeth and Elan are sponsoring research aimed at neutralizing the adverse reaction of the experimental vaccine. Technical indicators for the stock are bearish and steady while S&P gives ELN a neutral 3 STARS (out of 5) hold rating. If you’re looking for a hedged play on this stock, consider a July bull-put credit spread below the $15 range. ELN stock could fall up to 34.6% before expiration and this position would still be profitable. [RHF - Seven Summits Strategic Investments NewsBite] <br />Click Symbol For More News On: (ELN) (WYE)27 years on Broadwayhttp://www.blogger.com/profile/07182517222802573636noreply@blogger.com0tag:blogger.com,1999:blog-20798208.post-89722356559392155432008-04-07T15:29:00.000-07:002008-04-07T15:31:21.200-07:00Wyeth's efforts on Alzheimer's boost sharesWyeth's efforts on Alzheimer's boost shares<br />by Susan Todd/The Star-Ledger <br />Monday April 07, 2008, 2:25 PM<br />Shares of Wyeth and its partner Elan got a boost today after an article in Barron's touted an experimental drug the companies are working on to treat Alzheimer's Disease.<br /><br />The drug, named bapineuzumab, appears to slow the devastating effects of Alzheimer's by targeting amyloid plaques, which accumulate in the brain and detrimentally impact nerve cells in the brain. The plaque build-up results in symptoms of memory loss and difficulty performing routine tasks.<br /><br />Data from a mid-stage clinical trial is expected to be released in June, but the companies are already plowing ahead with late-stage study involving 4,100 patients.<br /><br />Shares of Madison-based Wyeth rose 6.3 percent, or $2.65, to $44.20 in early afternoon trading as Wall Street digested the Barron's story. Elan's stock was pulled up nearly 8 percent, or $1.71 a share, to hover around $23.38 in afternoon trading.<br /><br />Wall Street's excitement reflects the huge business potential for a new Alzheimer's drug. While there are already medicines on the market that treat the disease, they treat only the symptoms. The drug Wyeth is working on would take treatment to another level. "If it works,'' Joseph Camardo, senior vice president of global medical affairs, said during a healthcare conference earlier this year, "it's going to be a huge leap.''27 years on Broadwayhttp://www.blogger.com/profile/07182517222802573636noreply@blogger.com0tag:blogger.com,1999:blog-20798208.post-89549001575568489312007-12-11T18:00:00.001-08:002007-12-11T18:00:45.145-08:00Elan is poised for a nice runELN is going higher27 years on Broadwayhttp://www.blogger.com/profile/07182517222802573636noreply@blogger.com0tag:blogger.com,1999:blog-20798208.post-20983355295711512942007-08-20T05:16:00.000-07:002007-08-20T05:17:16.580-07:00Flamboyant trader John Devaney beat long odds to build a one-man brokerage into a miniempire. Now he wants to be taken seriously12 Jun 2007<br /><br />Pierre Paulden<br /><br />Flamboyant trader John Devaney beat long odds to build a one-man brokerage into a miniempire. Now he wants to be taken seriously.<br /><br /><br />BOND TRADER JOHN DEVANEY has built an estimated $250 million fortune by taking risks that Wall Street firms avoided -- betting big on chancy structured bonds amid a wave of post-Enron defaults and snapping up airline debt following the 9/11 attacks. Lately, he has been buying pools of subprime mortgages in the midst of a housing market implosion. <br /><br />"Bond trading is my bread and butter, and I'm very good at it," he says. <br /><br />Devaney is no less abashed when it comes to the ambitions of his tiny brokerage firm, United Capital Markets. In the eight years since he started Key Biscayne, Floridabased UCM, Devaney, 36, has made himself known to prospective clients and trading partners by throwing lavish parties at industry conferences featuring big-name entertainers like rock band Counting Crows and Tonight Show host Jay Leno. He clearly craves the spotlight. At a 1970s-themed benefit he sponsored in November for the local Boys & Girls Club of Broward County, Devaney and his wife, Selene, made their entrance in a golf cart decked out as a giant roller skate; she sported a disco diva getup, while he cavorted as the rhinestone-studded later version of Elvis. <br /><br />"I've always been a good promoter," says Devaney, who nonetheless remains all-but-unknown outside of the clubby asset-backed-securities market. <br /><br />Devaney, who specializes in the trading of esoteric, highly risky bonds and structured-debt vehicles, has come a long way. He floundered through high school and was arrested for loitering and petty theft, then worked his way through third-tier colleges and marginal jobs with no-name brokerage houses before starting UCM from his Key Biscayne home with a kitty of $250,000. Today, UCM is a 75-employee operation boasting a collection of exWall Street star traders and a newly renovated headquarters building whose walls are festooned with French impressionist art. Devaney's holding company, United Capital Holdings, comprises several hedge funds and a portfolio of mansions, jets and luxury yachts that Devaney uses himself and UCH leases for profit and tax benefits. <br /><br />An outsider and an underdog, he wants recognition and acceptance by Wall Street, and influence that transcends the financial world, pouring money into philanthropy and politics. Since 2004 he has given more than $100,000 to Republican Party candidates and helped out in other ways, such as lending a UCM jet to Charlie Crist in October during Crist's successful campaign for the Florida governorship. His activities are bringing him to the attention of a wider circle. <br /><br />"He did a great job," says H. Wayne Huizenga, the billionaire co-founder of Waste Management and Blockbuster Entertainment, a guest at Devaney's Boys & Girls Club fundraiser. "He raised a lot of money that night, and people certainly noticed him." <br /><br />Devaney's main focus these days, though, is growing UCH's two-year-old asset management arm from its current $670 million in assets to his goal of $2 billion, in a bid for steadier revenues that will enable him to take the company public and get into other businesses, such as underwriting securities and clearing trades for other brokers. <br /><br />"My big vision is to build an investment banking powerhouse," Devaney declares. <br /><br />But Devaney's fast-forward approach to business also means he's never too far from a potential blowup. He has suffered several big losses -- in 2003 he took a bath on the bankruptcy of insurer Conseco -- yet continues to plunge into highly risky situations. Earlier this year he weathered a close call after shares of subprime lender CompuCredit Corp. took a nosedive, but sold his position, a rare equity investment, for a slight gain. Most recently, he has loaded up on subprime mortgage debt, betting that he can identify troubled loans that won't default, and he is one of several investors in, and the principal financier of, a $5 billion project to buy up suburban Florida mobile homes, raze them and build luxury condominiums despite a deep housing market contraction. <br /><br />His focus on asset management and real estate, combined with an unwillingness to delegate, has prompted some defections: In March one of Devaney's senior traders left for a hedge fund and last month a four-person mortgage-trading team moved to fixed-income trading boutique Guggenheim Capital Markets. Says one Wall Street rival, "You have to ask two things about John's success: whether it's too good to be true and whether it's sustainable." <br /><br /> <br /><br />DEVANEY CAME TO HIS SUCCESS the hard way. Born into a comfortable, upper-middle-class family in Key Biscayne, John admired his father, Neil, a Williams College swimming star and Georgetown Law School graduate who rose to partner with law firm Welbaum, Zook, Jones & Williams in nearby Coral Gables. But his world fell apart when his father and mother, a schoolteacher named Dorothy, divorced. Neil Devaney quit work, drank and struggled with depression. Young John began to skip classes and was kicked out of a succession of public and private high schools; his older brother, Neil Jr., dropped out of school altogether. In 1988 the Dade County police charged Devaney with loitering and petty theft, according to his NASD BrokerCheck report. The charges were dismissed, but the young man clearly was not headed in the right direction. <br /><br />"I was depressed," recalls Devaney. "My dad, who was the leader of the whole family, quit. We had no money. My mom was struggling to take care of us, and my brother was doing drugs and alcohol." <br /><br />After barely graduating from Coral Gables High School, Devaney finally decided to stop waiting for his father to put the family back together and took responsibility for his life. Ashamed that his 1.8 grade point average kept him out of the prestigious universities his friends were going to, he sheepishly enrolled at Tallahassee Community College. <br /><br />"I was so embarrassed," he says. "My mom was a teacher." <br /><br />Devaney buckled down and after a year transferred to Colorado State University. Getting by on student loans and financial aid, Devaney became obsessed with making money -- fast. He printed his own business cards and devoured get-rich-quick books. He bought a home near campus with no money down, lived in one of the five bedrooms and rented out the others to students. He also had a side job selling his classmates vacation packages to spring break destinations like Cancún, Mexico. <br /><br />"He was a cut above the average student, both in terms of personality and intellectual ability," recalls John Olienyk, a finance professor at Colorado State's College of Business. <br /><br />Devaney fell in love with trading. In a finance class he learned about options, and he turned $3,000 from his student loan account into $12,000 with a wager on Motorola. By the time he graduated, Devaney says, he had doubled down on that bet several times, predicting that the handset maker would beat quarterly earnings expectations as the cell phone market took off. He claims to have amassed $200,000 -- using the gains to purchase expensive toys like motorcycles, a boat for waterskiing and a hot tub for his house. <br /><br />When Devaney graduated in 1994, he knew he wanted to work in finance, but not having a degree from a top school hurt him. He took a job with Miami-based Capital International Securities Group, a small brokerage house that soon had him pitching stocks to retail clients. Devaney struggled in the job and with his own trading, losing $125,000 on another Motorola options transaction. <br /><br />By June 1995 he had moved to a better-paying gig with Suncoast Capital Group, a Fort Lauderdale, Floridabased bond broker that specialized in more-complex financial instruments, such as collateralized mortgage obligations and mortgage-backed securities. He learned quickly and moved from a research job into trading and institutional sales, says Todd Cohen, a co-founder of the firm who is now president of Community Capital Management, a Fort Lauderdale money manager with $850 million in assets. Devaney also loved being the center of attention. One day during happy hour at a nearby watering hole, he let colleagues shave his head for $1,000. <br /><br />"He was a very funny, entertaining guy," says Cohen. <br /><br />But personal troubles followed him. In 1996 his brother died of a drug overdose at 27. The next year his father, who never went back to work, also passed away, at 57. <br /><br />Devaney became more serious about his career. He began researching high-yield asset-backed securities and, Cohen says, pushed to establish a desk to trade them. When Cohen declined, Devaney went back to Capital International, where he started an ABS desk with his own money. Lacking an established client base, he relied on mass e-mails offering to buy virtually any structured debt product. Within a year he expanded the desk to six traders. Then came a break: In 1998 and 1999 banks forced many of their investor clients to reduce leverage after the collapse of hedge fund Long-Term Capital Management. This caused many funds to dump securities, including asset-backed bonds, often at discounted prices. Devaney jumped in, betting that he would be able to sell the bonds for big profits when the markets recovered. There was one problem, though: Capital International was in deep financial trouble owing to a series of failed investment banking transactions. Devaney left to start his own firm in February 1999; Capital International shut down by year's end. <br /><br /> <br /><br />DEVANEY HAD PICKED A GOOD TIME to strike out on his own. During the next several years, an array of structured debt -- bonds backed by everything from mortgages to credit card receivables and aircraft leases -- cratered in value. The Wall Street firms that had underwritten most of the debt were in turmoil, laying off thousands amid tough economic times and selling off their positions. UCM became a buyer of last resort for mutual funds, insurance companies and other investors that needed to unload these structured bonds. Devaney could all but name his price, then wait for the market to turn around and reap huge profits. <br /><br />"John was an unbelievable provider of liquidity," says Olivier Cojot-Goldberg, vice chairman of Ellington Management Group, the Old Greenwich, Connecticut, hedge fund firm that specializes in mortgage-backed securities. <br /><br />The first sector to hit the wall, in 1999, was high-loan-to-value mortgages, so called because the amount of the loans typically was higher than that of the collateral backing them. But by the end of the decade, Wall Street underwriters, who packaged the loans for sale to institutions, warned about borrowers' ability to repay; they stopped buying the loans from originators, several of which declared bankruptcy. The value of outstanding high-LTV bonds plummeted. Devaney looked past the problems with the lenders and concluded that the borrowers mostly had high credit scores and would repay the loans. He bought as much as he could afford with his relatively low capital base, often at prices as low as 45 cents on the dollar, then persuaded other investors -- mostly hedge funds and wealthy individuals -- to buy the securities at substantially higher prices, often close to par. <br /><br />Devaney says he earned $5 million his first year in business, almost solely from these high-LTV trades; he immediately began diversifying, setting up United Real Estate Ventures. Today the unit's holdings include houses in the Bahamas and Key Biscayne; among them is the art deco manse used in the filming of the 1983 remake of gangster film Scarface. The Devaneys plan to move into it once it's renovated. <br /><br />Looking for bigger paydays, Devaney switched his clearing in 2001 to Dutch bank ABN Amro to obtain greater leverage, borrowing up to five times the amount of his trading positions to amplify profits. That year he bought a 100-foot motor yacht and named it Positive Carry, a term used to describe the easy money earned by borrowing at low interest rates at the short end of the yield curve and investing it at higher rates at the long end. <br /><br />Also in 2001, Devaney made what he regards as a critical nonbusiness decision -- giving up alcohol when his wife became pregnant with the first of the couple's three children. <br /><br />Devaney pounced on another wave of bankruptcies in 2002, when manufactured-housing lenders were going bust, triggering panic selling of the asset-backed securities they had issued during the previous several years. Devaney researched the securities, bought them at deep discounts and persuaded other investors to take advantage of a buying opportunity, while also holding some of the bonds for himself. <br /><br />By 2003, UCM's capital base had grown to more than $100 million, and Wall Street started to notice the firm, whose traders had moved from picnic tables in Devaney's home to a tiny nearby office suite but still wore shorts and T-shirts to work. Devaney took risks: He routinely went to sleep at night carrying an inventory of $500 million in distressed bonds on his books. Aghast, skeptical traders at mainstream firms sniped that it was only a matter of time before he fell. <br /><br />"Every year people thought he was going to blow up," says the head of distressed asset-backed trading at a major investment bank. <br /><br />Devaney did court disaster. "We were always owning the riskiest and most esoteric assets," he recalls. "It could have put me out of business." <br /><br />In 2003 it nearly did. Devaney had spent much of the previous year building a $100 millionplus position in the preferred shares of Conseco. The troubled Carmel, Indiana, insurer was well on its way to a $7 billion, December 2002 bankruptcy filing, but Devaney reasoned that if Conseco converted its bank debt to equity, a common practice in corporate reorganizations, it could generate enough cash to stay afloat for years to come and that the value of the preferred would soar. <br /><br />But things went far differently during negotiations to reorganize Conseco. Because the insurer's $2.1 billion of preferred shares were junior in its capital structure to its $4.6 billion of bank loans and bonds, Devaney found himself at the mercy of the banks and hedge funds that held the senior debt. Under a plan devised with the help of David Tepper, founder of Chatham, New Jerseybased hedge fund Appaloosa Management and owner of a majority of Conseco's bonds, the senior debt would be converted to equity, but the preferred would be rendered worthless. <br /><br />A loss of that magnitude stood to seriously damage Devaney's capital base. Working tirelessly to protect his interests, he rallied preferred holders, including Francis Poli, then general counsel at Allianz Global Investors, whose Oppenheimer Capital subsidiary owned a big chunk of the securities. He also discovered a private investor, Paul Floto, who had obtained power of attorney on behalf of a large group of retail investors who owned the interest-bearing shares and stood to lose substantial sums under Tepper's plan. With about 10 percent of the preferred outstanding, the threesome successfully petitioned the trustee overseeing Conseco to recognize the preferred holders as an official committee with a say in the reorganization -- a power rarely granted to equity holders. <br /><br />According to bankruptcy court documents, Conseco then offered the preferred holders $16 million, a tiny fraction of the roughly $200 million in shares they owned. Devaney refused those terms -- as well as a subsequent $40 million offer. His holdout delayed Conseco's emergence from bankruptcy, costing it extra legal and advisory fees. <br /><br />Finally, in July 2003, Devaney squared off with Tepper at the midtown New York office of law firm Davis Polk & Wardwell. Devaney says he learned that the preferred securities had largely been offered in $1,000 denominations to individual investors, including Floto. He argued that such risky securities should not have been sold to small investors, who deserved more compensation as the company exited bankruptcy. The company ultimately agreed to give the preferred holders a 1.5 percent equity stake in the reorganized Conseco, along with stock warrants and other consideration that brought the value of the package to $85 million. In exchange, Poli and Devaney agreed not to sue the insurer on behalf of the retail investors. (Tepper and Conseco didn't respond to repeated calls seeking comment about the episode.) <br /><br />"Devaney did his homework, and he grabbed on and would not let go," says an impressed Poli, who now works for investment manager Cohen & Steers and had never heard of the UCM chief before the Conseco battle. "He's obviously ambitious and smart. But he's one of those guys who has street smarts too." <br /><br />Though he trimmed his losses, Devaney left tens of millions on the table (he won't say exactly how much) and describes the Conseco investment as disastrous. The only consolation is that he learned the ins and outs of the reorganization process and helped some small investors get a bit of their money back. <br /><br />"I lost so much money in this whole situation, but I felt good about what we did," he says. <br /><br />Despite the Conseco debacle, 2003 proved to be another banner year for UCM as Devaney branched out into esoteric sectors, including collateralized debt obligations -- bonds backed by diversified pools of corporate loans, bonds and other credit instruments. Corporate defaults had been surging, fueled by accounting scandals and a burst bubble in the debt of telecommunications companies. By the end of 2002, more than one in eight loans and bonds was in default, nearly three times the 30-year average of 4.6 percent, according to Edward Altman, a finance professor at New York University's Stern School of Business. The defaults drove down the prices of hundreds of CDOs, and Devaney made big bets. Unlike today, few big banks made markets in these instruments. When the sector recovered in 2005, Devaney cashed in. <br /><br />"The market overreacted," says Christopher Ricciardi, CEO of Cohen Brothers, a $20 billion-in-assets New York money manager specializing in CDOs. "Buying distressed CDOs went on to become one of the best investments of the time." <br /><br />Devaney also made a contrarian bet on the airline sector, buying bonds backed by aircraft leases for 40 cents on the dollar in 2003, following a prolonged downturn brought on by 9/11, SARS in Asia, the invasion of Iraq and the bankruptcies of United Airlines and other carriers. By the following year the market had recovered, enabling him to sell the paper for 80 cents on the dollar. <br /><br />Devaney began to experiment with underwriting, repackaging $233.4 million of small business loans into a private CDO placement. Overall, in 2003, United Capital Holdings brought in $135 million in revenue; Devaney took home some $89 million. <br /><br /> <br /><br />DEVANEY'S GROWING fortune lets him indulge his appetite for the spotlight and his ambition for broader influence. Whether courting clients, recruiting star traders or donating money, he goes all out. <br /><br />In 2004, Devaney wanted to hire Wachovia Securities trader Randall White, who had made a name for himself trading CDOs and pooled aircraft leases. White offered to discuss a move after he received his year-end bonus. On February 18 his bonus check cleared; at 11:00 p.m. his phone rang. <br /><br />"Okay, that's done," said Devaney. "Now you're working for me. I'll pick you up tomorrow at home." <br /><br />At 7:30 the next morning, a black stretch limousine pulled up in front of White's home in Charlotte, North Carolina, where Wachovia is based, and Devaney popped out. The pair strolled to a Starbucks down the street, where Devaney put forward an attractive package, including the prospect of living by the beach in Key Biscayne. White insisted that UCM buy the positions he had been maintaining for Wachovia, so as to not leave the firm hanging with distressed trades. Devaney agreed, White called Wachovia to resign, and within an hour the two traders and White's dog, Champ, were aboard the UCM Gulfstream IV jet en route to Miami. During the flight Devaney released news of the hire through a securitization wire service. (Wachovia wound up keeping most of White's positions but sold some to UCM.) <br /><br />"He does not do anything half-assed," says White, 34, who left UCM in March for a hedge fund job. <br /><br />Devaney is just as aggressive in his pursuit of social and political influence. In April 2004 he promised to match up to $1 million in donations to fund Key Biscayne scholarships and cultural events. His November fundraiser for the Boys & Girls Club, held at the tony resort of Fisher Island, took place over four days and featured disco music by KC & the Sunshine Band and an address by conservative economist and actor Ben Stein. The take: $5 million. <br /><br />"He left me shaking my head with amazement," says Stein. "Smart, disciplined, creative, hardworking, deeply charitable -- a truly impressive human being." <br /><br />Then there is Devaney's business entertainment. In 2004 he traded in his first yacht for a 142-foot craft, also named Positive Carry, which he uses to wow prospective trading partners and clients of his money management arm. In November he paid $16.25 million for Aspen, Colorado's Sardy House bed and breakfast, which is the site of the nation's largest living Christmas tree. He plans to use it as a vacation home and another place to entertain clients and employees. (UCM sponsors a celebrity ski race for charity in Aspen every winter.) In December the Devaneys kept up the tradition of lighting the tree in a grand public ceremony for local residents. <br /><br />Devaney's purchase of a corporate jet a few years back brought him to the attention of the country's political elite. (Until the passage of recent lobbying reforms, members of Congress often sought out jet owners to sponsor fundraising trips and other travel.) In 2004 he became friendly with thenSenate majority leader Bill Frist, through a UCM attorney who once worked on the senator's legislative staff. Devaney invited Frist to spend an afternoon on Positive Carry. Later Frist invited the UCM chief to a December 2004 dinner with President George W. Bush and a small group of donors at Frist's Washington home. While other business leaders were trying to talk to the president, Devaney struck up a conversation with Kendrick Wilson III, vice chairman and head of financial institutions investment banking at Goldman, Sachs & Co. Intrigued by Devaney's story, Wilson invited him to meet with Goldman bankers in New York to discuss how to grow his business. <br /><br />In January 2005, Devaney visited Goldman's lower Manhattan headquarters, where Wilson's team suggested he sell shares in United Capital to the public. Devaney instead asked whether Goldman could raise up to $500 million of unsecured corporate debt for UCM, a way to acquire long-term capital and reduce his reliance on short-term bank credit. The bankers, however, advised him that selling debt would be too expensive because Devaney's business was overwhelmingly dependent on a single, highly volatile revenue source -- making markets in distressed debt. Exhibit A in their argument: UCM's 2004 earnings fell from $89 million to $70 million as defaults eased and the economy picked up. Goldman suggested he diversify revenues by starting an asset management business and doing more underwriting. Devaney had been managing accounts for about 70 friends and family but wasn't charging fees. He decided to build a formal money management arm from that base and in April 2005 launched United Capital Asset Management, starting with two hedge fund portfolios specializing in distressed debt. One early outside investor was John Dasburg, a Key Biscayne neighbor who was CEO of Northwest Airlines from 1991 to 2001 and then ran Burger King for two years. <br /><br />"The more I heard, the more impressed I became with the fact he found a niche that made intuitive sense to me," says Dasburg, now chairman and CEO of Astar Air Cargo and an investor in several hedge funds. "In all of business we are constantly trying to differentiate ourselves. In my judgment he has a differentiated product, and that's one I wanted in my portfolio." <br /><br />Devaney seeded UCAM with $40 million of his own money and now, he says, has more than $100 million invested in its funds. He says he takes a more conservative approach to managing client money than to making markets as a broker-dealer. About one third of the 60 bonds UCAM holds are investment-grade, and the funds are leveraged two and a half times -- half the debt he uses on the brokerage side. He also has hired senior operational and investing personnel, including chief operating officer Wesley Pritchett, formerly a board member of BNY Capital Markets. <br /><br />Devaney can't comment on the performance or strategy of the funds because of securities regulations. But according to investor documents for UCAM's funds, its main fund was up 40 percent in 2006 and is up almost 110 percent since inception. <br /><br />The ambitious trader believes that if he can quadruple UCAM's assets under management, to at least $2 billion, he will generate enough fees to balance his firm's revenue, enabling him to tap the public debt and equity markets. He will then use that capital to expand into underwriting and better attract and retain employees. <br /><br />But running hedge funds alongside a brokerage operation presents serious potential conflicts of interest. Brokerage clients may worry that Devaney's hedge funds will step ahead of them to buy and sell at the most attractive prices or otherwise profit from knowledge of their intentions. Another issue is how Devaney prices the esoteric securities owned by the hedge funds. The market for these instruments is typically quite illiquid, with prices frequently quoted by just one or two brokerages -- including UCM. The brokerage arm, as a result, might have an incentive to buy or sell certain securities at prices that help the funds show gains or minimize losses. <br /><br />Devaney is unfazed by these concerns. In fact, he sees the asset management arm as key to the success of his brokerage, and vice versa. UCM can source bonds from UCAM accounts, and the funds can buy and hold securities when the brokerage side may not have immediate buyers, he says. <br /><br />"Any hedge fund that is running without an affiliated broker-dealer is at a giant disadvantage," he asserts. He dismisses the potential for conflicts by adding, "We have proved how ethical we are." <br /><br />There are other obstacles on the road to a bigger, more mainstream operation. One is the cyclical nature of the distressed-brokerage business. With defaults at historic lows -- just 1.5 percent of high-yield debt is currently in default, according to Moody's Investors Service -- buying opportunities are scarce and profits are harder to come by. Competition in structured-debt trading is also stiffer today. Big Wall Street firms are now aware of the profits that can be made in the inefficient markets where Devaney once operated virtually by himself. Deutsche Bank, for instance, helped boost its most recent quarterly earnings by 29 percent with a well-timed bet on a subprime-mortgage-bond index known as the ABX. <br /><br />"The markets are significantly more liquid today than they were in the past," notes Ricciardi of Cohen Brothers. <br /><br />Devaney says a more crowded field has so far not been a problem; rather, it gives UCM more counterparties to trade with, decreasing risk. He points out that the firm earned more than $100 million last year, up from $29.5 million in 2005. <br /><br />For Devaney, the greatest comfort is that people always seem to overextend themselves. He had railed at industry conferences for months that the subprime sector was due for a fall, but he wouldn't jump in until enough damage was done. Now he's buying bonds for both UCAM and UCM that are backed by interest-only mortgages and option ARMs -- highly risky adjustable-rate loans that were extended en masse to homeowners over the past several years and are now defaulting in large numbers. Devaney has purchased the lowest-rated bonds referencing these risky mortgages at deep discounts. He expects many of these to default over the next few years but believes the interest payments on the ones that don't will see him through when the market recovers. <br /><br /> <br /><br />AT AN AUCTION IN NEW YORK last year for the Robin Hood Foundation, a charity founded by hedge fund manager Paul Tudor Jones II, Devaney bid $610,000 and won ten lunches with an assortment of powerful executives, including digital media impresario Barry Diller, Hollywood producer Harvey Weinstein, Citicorp executive committee chairman and former Treasury secretary Robert Rubin, and hedge fund kingpins Tudor Jones and Steven Cohen. <br /><br />So far he's sat down with Rubin and Tudor Jones; the latter shared some wisdom about success. <br /><br />"He gave me great advice about having balance between family, philanthropy and trading," says Devaney. "He said trading wasn't everything, and these other areas will help you succeed." <br /><br />That's easy for a multibillionaire like Tudor Jones to say, and an important lesson to absorb for Devaney, who aspires to the same rarefied status but is following a riskier path to get there.27 years on Broadwayhttp://www.blogger.com/profile/07182517222802573636noreply@blogger.com0tag:blogger.com,1999:blog-20798208.post-62358191322527339572007-03-25T06:20:00.000-07:002007-03-25T06:22:43.256-07:00Dueling Fools: Elan Bull RebuttalDueling Fools: Elan Bull Rebuttal<br />By Anders Bylund<br />March 15, 2007<br />Brian and I will have to agree to disagree on a couple of very important points regarding Irish drug maker Elan (NYSE: ELN).<br /><br />He thinks multiple sclerosis drug Tysabri is too risky and not profitable enough to support the current valuation, but I'm convinced otherwise for a couple of reasons. Regarding the risk, it's true that three patients in the Tysabri trials fell victim to the rare brain disease progressive multifocal leukoencephalopathy (PML), which is why the drug was taken off the market for over a year and a half.<br /><br />But the safety studies showed that all three cases involved patients that were, or had very recently been, on very strong drug cocktails, including immunosuppressors. That's why the drug is back as nothing but a single-drug treatment, not to be combined with other medicines that mess with the function of the brain, nervous system, or immune system. And the current crop of patients are closely monitored under a mandated safety program to weed out multidrug patients and catch any further PML cases before they become life-threatening.<br /><br />So, yes, there is risk. If another patient or two were to develop this deadly disease, Tysabri could be in trouble again. But all evidence so far indicates that it's a very safe drug when used properly. And that experienced Biogen Idec (Nasdaq: BIIB) staff that Brian likes so very much will help sort out the situation if the worst should happen.<br /><br />As for the sales trajectory, I'd say that a $30.2 million second-quarter effort is impressive after the $7.9 million of sales in the first quarter. Again, management believes it will hit $300 million in annual sales by the end of 2007 and $1 billion the next year. The measured growth pace is a result of that safety review program, and will pick up speed once doctors and patients become familiar and comfortable with the drug and the procedures around it.<br /><br />Finally, Brian questions the strength of the balance sheet and how long it will support the business with its history of losses. Two things: Elan should be profitable again sometime this year, removing the need for lots of cash on hand. And second, the company has lots of cash -- about $1.5 billion of it. It's just a highly leveraged business model.<br /><br />So do your due diligence and place your free bets on that Alzheimer's treatment or nano drug delivery system today, Fool. Tysabri simply isn't the massive risk Brian made it out to be. It's a boon to MS victims and investors alike. And to get rich while supporting a company that makes people's lives worth living again? Now, that's what I call Foolish.<br /><br />You're not done yet!<br /><br />Read the other arguments. <br />Sound off in Motley Fool CAPS. <br />Vote for the winner. <br />There's a lively Elan discussion on the Motley Fool Rule Breakers biotech industry message board. Sign up for a free 30-day trial today, and also enjoy the included access to our regular Elan board.<br /><br />Biogen Idec is a Stock Advisor recommendation.27 years on Broadwayhttp://www.blogger.com/profile/07182517222802573636noreply@blogger.com1tag:blogger.com,1999:blog-20798208.post-1139748994120513082006-02-12T04:56:00.000-08:002006-10-17T17:00:47.645-07:00<a href="http://photos1.blogger.com/blogger/5711/1850/1024/IMG_8985.jpg"><img style="CLEAR: all; FLOAT: left; MARGIN: 0px 10px 10px 0px; CURSOR: hand" alt="" src="http://photos1.blogger.com/blogger/5711/1850/400/IMG_8985.jpg" border="0" /></a> <a href='http://picasa.google.com/' target='ext'><img src='http://photos1.blogger.com/pbp.gif' alt='Posted by Picasa' style='border: 0px none ; padding: 0px; background: transparent none repeat scroll 0% 50%; -moz-background-clip: initial; -moz-background-origin: initial; -moz-background-inline-policy: initial;' align='middle' border='0' /></a> 27 years on Broadwayhttp://www.blogger.com/profile/07182517222802573636noreply@blogger.com0tag:blogger.com,1999:blog-20798208.post-1139748941147757752006-02-12T04:55:00.000-08:002006-10-17T17:00:47.589-07:00<a href="http://photos1.blogger.com/blogger/5711/1850/1024/IMG_8980.jpg"><img style="CLEAR: all; FLOAT: left; MARGIN: 0px 10px 10px 0px; CURSOR: hand" alt="" src="http://photos1.blogger.com/blogger/5711/1850/400/IMG_8980.jpg" border="0" /></a> <a href='http://picasa.google.com/' target='ext'><img src='http://photos1.blogger.com/pbp.gif' alt='Posted by Picasa' style='border: 0px none ; padding: 0px; background: transparent none repeat scroll 0% 50%; -moz-background-clip: initial; -moz-background-origin: initial; -moz-background-inline-policy: initial;' align='middle' border='0' /></a> 27 years on Broadwayhttp://www.blogger.com/profile/07182517222802573636noreply@blogger.com0tag:blogger.com,1999:blog-20798208.post-1139747644312151672006-02-12T04:33:00.000-08:002006-10-17T17:00:47.529-07:00cold<a href="http://photos1.blogger.com/blogger/5711/1850/1024/IMG_8950.jpg"><img style="CLEAR: all; FLOAT: left; MARGIN: 0px 10px 10px 0px; CURSOR: hand" alt="" src="http://photos1.blogger.com/blogger/5711/1850/400/IMG_8950.jpg" border="0" /></a> <a href='http://picasa.google.com/' target='ext'><img src='http://photos1.blogger.com/pbp.gif' alt='Posted by Picasa' style='border: 0px none ; padding: 0px; background: transparent none repeat scroll 0% 50%; -moz-background-clip: initial; -moz-background-origin: initial; -moz-background-inline-policy: initial;' align='middle' border='0' /></a> 27 years on Broadwayhttp://www.blogger.com/profile/07182517222802573636noreply@blogger.com0tag:blogger.com,1999:blog-20798208.post-1139747506578135802006-02-12T04:31:00.000-08:002006-10-17T17:00:47.472-07:00from the boardwalk at 7:30am<a href="http://photos1.blogger.com/blogger/5711/1850/1024/IMG_8947.jpg"><img style="CLEAR: all; FLOAT: left; MARGIN: 0px 10px 10px 0px; CURSOR: hand" alt="" src="http://photos1.blogger.com/blogger/5711/1850/400/IMG_8947.jpg" border="0" /></a> <a href='http://picasa.google.com/' target='ext'><img src='http://photos1.blogger.com/pbp.gif' alt='Posted by Picasa' style='border: 0px none ; padding: 0px; background: transparent none repeat scroll 0% 50%; -moz-background-clip: initial; -moz-background-origin: initial; -moz-background-inline-policy: initial;' align='middle' border='0' /></a> 27 years on Broadwayhttp://www.blogger.com/profile/07182517222802573636noreply@blogger.com0tag:blogger.com,1999:blog-20798208.post-1139746258105540542006-02-12T04:10:00.000-08:002006-10-17T17:00:47.413-07:00pic number one<a href="http://photos1.blogger.com/blogger/5711/1850/1024/IMG_8932.jpg"><img style="CLEAR: all; FLOAT: left; MARGIN: 0px 10px 10px 0px; CURSOR: hand" alt="" src="http://photos1.blogger.com/blogger/5711/1850/400/IMG_8932.jpg" border="0" /></a> taken 7am today <a href='http://picasa.google.com/' target='ext'><img src='http://photos1.blogger.com/pbp.gif' alt='Posted by Picasa' style='border: 0px none ; padding: 0px; background: transparent none repeat scroll 0% 50%; -moz-background-clip: initial; -moz-background-origin: initial; -moz-background-inline-policy: initial;' align='middle' border='0' /></a> 27 years on Broadwayhttp://www.blogger.com/profile/07182517222802573636noreply@blogger.com0tag:blogger.com,1999:blog-20798208.post-1136939697303933702006-01-10T16:34:00.000-08:002006-10-17T17:00:47.343-07:00elan 2006elan27 years on Broadwayhttp://www.blogger.com/profile/07182517222802573636noreply@blogger.com0