• Albany Molecular Research Inc., of Albany, N.Y., saw its shares plummet 30 percent Tuesday on its third-quarter earnings, which posted a 41 percent increase in net income over last year but still fell short of consensus estimates. The company reported total revenue of $47.6 million for the three-month period and net income of $2 million, or 6 cents per share. Analysts, however, had predicted $48.3 million in revenue and earnings per share of 9 cents. As of Sept. 30, AMRI had cash, cash equivalents and investments of $105.9 million. Its stock (NASDAQ:AMRI) closed Tuesday at $12.31, down $5.10.

• AVI BioPharma Inc., of Portland, Ore., reported data from an Ebola follow-on study of two surviving non-human primates treated with AVI's Neugene Plus antisense compounds in a previous study, showing that both were protected from infection when challenged with the Ebola virus one month post-study, without being re-treated with the drug. In a Marburg study, all non-human primates survived a lethal challenge of the virus when treated with Neugene Plus compounds. Previous preclinical studies demonstrated protection against Marburg virus in mouse and guinea pig models. Work on Neugene Plus in Ebola and Marburg viruses is funded by a two-year $28 million research contract with the Defense Threat Reduction Agency. Data were presented at the biodefense research conference in Philadelphia.

• Bayer Pharmaceuticals Corp., of Dallas, voluntarily agreed to stop marketing aprotinin, an anti-fibrinolytic agent sold as Trasylol, due to concerns raised by a Canadian study and other investigations suggesting an increased risk for death. The drug is approved to control excessive bleeding during heart surgery in patients at particular risk for that complication.

• BioView Ltd., of Rehovot, Israel, agreed to allow Transgenomic Inc., of Omaha, Neb., to distribute BioView's family of Scanning and Analysis Workstations in selected Western European countries and Scandinavia. Transgenomic's European sales and support organization will market, sell and serve the instruments, which include automated workstations for scanning and classification of cells via fluorescence in situ hybridization and brightlight microscopy. Terms were not disclosed.

• Can-Fite BioPharma Ltd., of Petach Tikva, Israel, said preclinical findings show that CF101, which is in development for rheumatoid arthritis, also could be used to treat Crohn's disease, since the A3 adenosine receptor targeted by CF101 is overexpressed in bowel tissue and peripheral blood mononuclear cells derived from Crohn's disease patients. CF101 is designed to work by binding to the A3 adenosine receptor and causing apoptosis in the inflammatory cells. The company also continues to proceed with CF101 in RA, with a confirmatory Phase IIb trial scheduled to start in early 2008.

• Cytogen Corp., of Princeton, N.J., received notice from Nasdaq that its stock has traded below $1 since Sept. 24, putting it below the minimum bid price requirement for continued listing on the Nasdaq Global Market. The company has until May 5, 2008, to regain compliance, meaning its stock will have to close at $1 per share or higher for at least 10 consecutive business days. Shares of Cytogen (NASDAQ:CYTO) closed at 56 cents Tuesday, down 6 cents.

• Direvo Biotech AG, of Cologne, Germany, acquired AC Biotech GmbH, of Julich, Germany, in an all-cash transaction, though specific terms of the deal were not disclosed. AC Biotech will continue to operate as an independent, fully-owned subsidiary of Direvo. The deal helps Direvo extend and expand its capabilities and offerings in the industrial biotechnology and pharmaceutical markets. AC Biotech provides bioprocess development and contract manufacturing services.

• Epix Pharmaceuticals Inc., of Lexington, Mass., achieved a milestone related to the second of three discovery programs under its collaboration with London-based GlaxoSmithKline plc. By identifying three lead candidates to move forward into lead optimization in a second G-protein coupled receptor discovery program. Under the companies' December 2006 deal, Epix is entitled to receive a $3 million milestone payment from GSK in the next 30 days. Epix identified three candidates in August for the first discovery program, which also entitled the firm to a $3 million payment. Epix could earn up to $1.2 billion from the total collaboration. (See BioWorld Today, Dec. 13, 2006.)

• Genizon BioSciences Inc., of Montreal, and Neuropsychiatrie, Decouverte & Innovation Inc., of Quebec, are collaborating to enhance and potentially add to discoveries made by Genizon earlier this year in a genome-wide association study of schizophrenia. Genizon's study identified multiple genes associated with the disease using DNA samples from patients in the Quebec Founder Population, and NDEI's contribution will involve supplying a second set of samples collected from the Quebec Founder Population for genotyping and statistical analysis at Genizon's St. Laurent, Quebec, research center. Terms of the agreement were not disclosed.

• Lantibio Inc., of Chapel Hill, N.C., and TRB Chemedica, of Valais, Switzerland, signed a license agreement with a subsidiary of Hunenberg, Switzerland-based Alcon Inc., for U.S. rights to a dry eye syndrome product that consists of a TRB formulation containing sodium hyaluronate. That product currently is in an ongoing Phase III pivotal study, and Lantibio expects to file a new drug application in 2008. Under the terms, Lantibio will conduct the development program, while Alcon will assume responsibility for subsequent marketing, sales and manufacturing in the U.S. market. Terms call for undisclosed up-front and milestone payments, as well as royalties to be paid to Lantibio and TRB by Alcon on product sales.

• Micromet Inc., of Bethesda, Md., said two new studies show that BiTE antibodies, which are designed to connect cytotoxic T cells with cancer cells, activate T cells only when cancer cells are present, but not when they are given to T cells in the absence of cancer cells. Studies also showed that initial cytokine release by activated T cells is not required for elimination of cancer cells and that anti-inflammatory steroid hormones can efficiently quench the initial cytokine release by BiTE-activated T cells without reducing their capacity to kill cancer cells. Those studies were published in the Journal of Immunotherapy and in Cancer Immunology Immunotherapy, respectively.

• Pathwork Diagnostics, of Sunnyvale, Calif., said the Virginia Commonwealth University School of Medicine initiated an investigational study of the Pathwork Tissue of Origin Test, a genomics-based test designed to help determine a tumor's origin so that tissue-specific management can begin. The test uses proprietary analytics aimed at measuring the expression of more than 1,600 genes for comparing a tumor's genetic signature against those of 15 known tissue types. VCU's study is evaluating the technology in patients, many of whom might have few remaining diagnostic options.

• Phage Biotechnology Corp., of Wakefield, Mass., engaged the Bruckner Group to find a partner for joint development of the company's recombinant biological therapies, which includes 10 innovative and standard-of-care recombinant proteins such as pegylated human growth hormone, pegylated G-CSF, pegylated interferon alpha, beta interferon and single-chain antibodies. Phage anticipates that its portfolio will produce a revenue stream in a moderate nine-figure range within four years, eventually reaching a medium to high 10-figure range.

• PharmAthene Inc., of Annapolis, Md., and Medarex Inc., of Princeton, N.J., said the FY 2008 Department of Defense appropriations bill includes an $800,000 payment to PharmAthene for reimbursement to support ongoing development of Valortim, a fully human monoclonal antibody generated by Medarex's UltiMAb technology that is being co-developed by the two companies. PharmAthene said that the latest funding will be used to support further study of Valortim in a new animal model of anthrax infection.

• Verona Pharma plc, of London, said its asthma drug candidate, RPL554, is starting a second 28-day inhalation toxicology study to demonstrate safety, and pending positive results, the company anticipates moving into the clinic early next year. RPL554 is a long-acting bronchodilator/anti-inflammatory molecule in development for hay fever, asthma and chronic obstructive pulmonary disease.

• VistaGen Therapeutics Inc., of South San Francisco, received $1.2 million in funding from the National Institutes of Health to support final preparation and filing of an investigational new drug application for AV-101, expected in early 2008. That award is the final phase of a total $4.3 million grant from the National Institute of Neurological Disorders and Stroke, for preclinical development of AV-101, a targeted prodrug designed to regulate the NMDA receptor in neuropathic pain, Parkinson's disease and epilepsy.