) is focused on the development and commercialization of novel
therapeutics to treat disorders in the areas of orphan
Recently, Hyperion entered into a definitive agreement to
acquire Andromeda Biotech Ltd., a subsidiary of Clal
Biotechnology Industries Ltd., for $12.5 million in cash and
312,869 in Hyperion shares (approximate value $7.85 million).
The acquisition of Israel-based Andromeda will add the
latter's lead candidate, DiaPep277, to Hyperion's portfolio.
DiaPep277 is being evaluated in a confirmatory phase III study
(DIA-AID 2) as a first-in-class immune intervention therapy for
new onset type I diabetes - an orphan indication.
Enrollment of adult patients in this confirmatory phase III
study is completed. Results will be out by the first quarter of
Apart from the announcement of the proposed acquisition,
Hyperion also updated its operating expense guidance. For 2014,
Hyperion anticipates its adjusted operating expenses to be in the
range of $64 million to $78 million, above the earlier stated
range (announced in Feb 2014) of $52 million to $64 million.
The transaction is expected to close in the second quarter of
2014. With this acquisition, Hyperion will have 10 more employees
on its roll. Following the transaction, Andromeda will become a
wholly owned subsidiary of Hyperion.
As a result of this acquisition, the candidate DiaPep277 will
expand Hyperion's pipeline of orphan diseases, with a highly
differentiated candidate which is about to be marketed soon. We
expect investor focus to remain on phase III results.
Hyperioncurrently carries a Zacks Rank #3 (Hold). Investors
looking for better-ranked stocks in the biopharma sector may
consider companies like
Alexion Pharmaceuticals, Inc.
Gilead Sciences Inc.
). All three stocks carry a Zacks Rank #1 (Strong Buy).
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