The money to be made in biotech stocks over the next year will come from established but lesser-known companies, not the top-tier stocks, according to New York investor David Blech. While many Wall Street analysts have been recommending that investors head for safety in companies with earnings, such as Amgen Inc. and Genzyme Corp., Blech continues to go his own way. Not coincidentally, he holds major positions in most of the stocks he recommended in an interview with BioWorld. "While the

Biotech shares lost some steam Friday but maintained small gains despite declines in broader market indicators. Gains by three stocks in the AMEX Biotechnology Index helped it gain another 3.22 points to close the week at 146.81. Genzyme Corp. shares (NASDAQ:GENZ) rose $2 to $42.75 after two analysts raised their ratings. Robert Kupor of Kidder, Peabody, who changed his rating to "buy" from "hold," wrote, "Although no dramatic developments have transpired at Genzyme, we believe the combination

Genentech Inc. reported that its DNase cystic fibrosis treatment has demonstrated effectiveness in Phase II clinical studies. University of Washington investigators on Sunday were to present data from 181 CF patients treated with the South San Francisco, Calif., company's recombinant human enzyme, which digests the DNA from white blood cells. White cells accumulate in the mucus, adding to already thickened secretions that characterize the inherited disease. Patients treated with the drug for

Quadra Logic Technologies Inc. has received approval from the Canadian Health Protection Branch to begin Phase I trials of its benzoporphyrin derivative (BPD) as a light-activated treatment for malignant skin lesions. BPD's porphyrin-derived molecules tend to accumulate in tumorous, psoriatic and virally infected cells. When illuminated with a laser, BPD breaks oxygen molecules into singlet oxygen that kills the cells. Preliminary results from a Phase I trial at Massachusetts General Hospital

Cygnus Therapeutic Systems Inc. said Friday that it will resume its secondary offering, which was put on hold in April. The new prospectus reduces the number of shares offered to 1.5 million from the 3 million originally proposed in March. The company's stock (NASDAQ:CYGN) closed down 38 cents at $15.63 on Friday. When Cygnus announced the offering in March, the shares closed at $25. Cygnus announced last week that its first product, a transdermal nicotine patch, has received FDA marketing

Alain B. Schreiber has been named president and chief executive of Vical Inc. of San Diego. He was senior vice president of discovery research at Rhone-Poulenc Rorer Central Research. Privately held Vical's technology consists of direct injection of purified gene sequences into muscle and other tissues. Creative Biomolecules Inc. announced that by mutual agreement Jan A. Buck will no longer serve as president, chief executive and director. Buck will be a consultant to the company on special

Bioject Inc. on Thursday said it has entered into a collaboration with Eli Lilly and Co. to develop and market products based on Bioject's Biojector needle-free drug injection system. The licensing and supply agreement includes the acquisition by Lilly of $4 million of Bioject common stock (NASDAQ:BJCTF), representing 7 percent of outstanding shares, in addition to financial support of development efforts. Prior to the agreement, Bioject has 8.6 million shares outstanding. The stock jumped $1

Bioscience stock buying continued for a second day on Thursday, pushing up prices across the board. The AMEX Biotechnology Index added 7.76 points to its four- point gain from Wednesday, closing at 143.28. The index is up nearly 9 percent since Tuesday. Chiron Corp. (NASDAQ:CHIR) jumped $3.50 to $40.50. Neurogen Corp. (NASDAQ:NRGN) picked up $2.75 to $10.50 after trading as high as $11 during the session. Affymax N.V. (NASDAQ:AFMXF), Alteon Inc. (NASDAQ:ALTN), Amgen Inc. (NASDAQ:AMGN), Idexx

Gensia Pharmaceuticals Inc. has received its first patent on its GenESA System, the company said Thursday. U.S. patent No. 5,108,363, issued Tuesday, covers the use of closed-loop administration of catecholamine compounds for the diagnosis and evaluation of coronary artery disease. The GenESA System combines arbutamine and a computer- controlled drug delivery system designed to pharmacologically stress the heart. It is designed to aid in the diagnosis of coronary artery disease using methods

Enzon Inc. said Thursday that it has received Japanese government approval for the sale of Adagen to one patient with severe combined immunodeficiency disease. This is the first Japanese patient for the South Plainfield, N.J., company (NASDAQ:ENZN). The patient population is too small for clinical trials to develop a statistical base necessary for a formal product approval, said Glenn Kazo, vice president of corporate development. Adagen combines polyethylene glycol with a bovine form of the

Public Citizen, a Ralph Nader organization, on Thursday petitioned the FDA to put warnings on all transdermal nicotine patch products and nicotine gum. The petition recommends a box warning that states: "(1) This product has only been shown to be effective when used as an aid to a comprehensive smoking-cessation program and (2) Because it contains nicotine, this product should not be used while the patient is still smoking." Under FDA regulations, prescription drug products with box warnings

Biopool International Inc. has received FDA clearance to begin selling a kit to detect a hereditary bleeding disorder called von Willebrand's disease, the company said Thursday. The kit uses freeze-dried human platelets and a platelet aggregant called ristocetin. If a patient has the disorder -- estimated to affect one in 125 individuals -- the ristocetin co- factor in plasma will be missing and the platelets will fail to aggregate. The company estimates the market at $3 million to $5 million

By Karen Bernstein BioWorld Staff Glycomed Inc. said Thursday that it has signed a $12.6 million multiyear agreement to fund carbohydrate R&D at the Alberta Research Council. Under the agreement, which is aimed at developing treatments for inflammatory and immune diseases, Glycomed will provide $8.4 million in research support and $4.2 million in milestone payments. In return, Glycomed has worldwide exclusive rights to discoveries made during the collaboration, as well as to more that 40

Telios Pharmaceuticals Inc. said it has started clinical trials of its TelioDerm wound healer in two additional applications, skin grafting in the elderly and for second-degree burns in children. Trials of the San Diego company's peptide-based product are already in progress for healing skin ulcers, including those associated with venous stasis, diabetes and sickle cell disease. Telios (NASDAQ:TLIO) said it has begun analysis of the venous stasis trial data, with results expected by late in the

British Bio-technology Group plc and SmithKline Beecham said Thursday that they have signed a collaborative agreement for compounds to treat arthritis and cancer. Each company will fund its own R&D program. British Bio- technology will develop anti-invasive cancer therapies and have exclusive worldwide marketing rights. SKB will develop arthritis therapeutics and have exclusive marketing rights in the United States and Japan and co- marketing rights in Europe with British Bio-technology. The

CellPro Inc. said Wednesday that it has sued Baxter International Inc., Baxter Healthcare Corp. and Becton Dickinson and Co. in a dispute over technology for stem cell separation. The complaint, filed Tuesday in U.S. District Court in Seattle, alleges that three patents exclusively licensed to Becton Dickinson and sublicensed to Baxter are invalid, unenforceable and not infringed. The suit also charges that Baxter and B-D have violated antitrust laws and laws prohibiting unfair competition. The

Genzyme Corp. and Neozyme II Corp. on Wednesday announced that they have raised $73.5 million in a public offering of 2.1 million Neozyme units priced at $35 per unit. Neozyme II will receive the proceeds of the offering and will contract with Genzyme to develop protein replacement and gene therapy treatments for cystic fibrosis. The R&D spinoff will spend about $15 million annually on the programs. "We hope these funds will take us all the way through an end product," said spokeswoman Susan

Immucor Inc., a maker of blood bank reagent systems and related products, said Wednesday that it has authorized the purchase of up to 500,000 shares of its common stock on the open market. At Wednesday's closing price of $8.75, up 25 cents, the purchase would cost up to $4.4 million. The Norcross, Ga., company (NASDAQ:BLUD) has 7.8 million shares outstanding and $17.5 million in cash. "Market conditions have provided us with an opportunity to enhance shareholder value by purchasing stock at

Molecular Biosystems Inc. said that the European Patent Office on Wednesday granted it a broad antisense patent that the company said covers compounds in development at other biotechnology and pharmaceutical companies. The claims in European patent No. 0092574 cover any antisense oligonucleotide of 14 to 23 bases that is stabilized to prevent chemical or nuclease degradation and that targets messenger RNA. The San Diego company "will enforce and defend this position vigorously," said Dr