The Globe and Mail

Look for BioMS Medical to grab the trading headlines on Tuesday after a stunning partnership to commercialize its late-stage multiple sclerosis drug with pharma giant Eli Lilly.
Versant Partners’ Doug Loe waxes poetic, calling the deal “hugely positive, technology-validating, regulatory risk-reducing, market risk-mitigating [and] cash-contributing.”
He upgraded the stock to “buy” from “speculative buy,” igniting the price target to $12.25 from $5.25. BioMS finished at $2.70 on Monday.
The deal gives BioMS an upfront cash payment of $87-million, which is “at the top end of biotech deals we have seen in recent years,” he writes, and total milestone payments that could reach $410-million, plus royalties on future global sales of the drug that he figures could reach 25 per cent, up from 20 per cent previously.
Mr. Loe says the BioMS drug, known for now as MBP8298, is the “most-advanced” therapy in clinical development for secondary progressive multiple sclerosis and “clearly Eli Lilly agrees.”