OTCBB ALERTS

[danny2006]

DORB Quick Recent Info! Buyout Offer! & Rev. Estimates

DOR BioPharma Inc. (DORB.OB: Quote, Profile , Research) on Thursday rejected a takeover offer from Cell Therapeutics Inc. (CTIC.O: Quote, Profile , Research), saying the price was inadequate.

Shares of Cell Therapeutics fell more than 13 percent, while DOR was up 4 percent in afternoon trade.

Steve Brozak, an analyst with WBB Securities, said the biotechnology company's shares fell due to its secondary offering of $37.2 million convertible preferred stock and warrants, and the rejection of the buyout offer.

The realisation that approval for Cell Therapeutics' cancer drug Xyotax will take time even with a fast track designation also added to the fall in the shares, Brozak said by phone.

In a filing with the U.S. Securities and Exchange Commission, DOR said it will continue to consider offers from interested parties.

In January, Cell Therapeutics made an unsolicited offer for DOR. Cell Therapeutics offered to issue 29 million shares to DOR shareholders, representing 19.9 percent of its outstanding stock.

Cell Therapeutics had also offered $15 million in stock or cash if the U.S. Food & Drug Administration approved DOR's new drug application for orBec, a treatment for complications of bone marrow transplantation.

Shares of Cell Therapeutics fell 25 cents to $1.58 on the Nasdaq. (Reporting by Shivani Singh in Bangalore)
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I pulled up some sell-side research on Osiris Therapeutics (OSIR - Cramer's Take - Stockpickr), which is trying to develop a stem-cell therapy for acute GVHD. While not exactly comparable to Orbec, the revenue forecasts for this Osiris drug in GVHD range from $30 million to $60 million, so call it $45 million peak sales, average.

If Dor does manage to get Orbec approved, the company will try to expand the potential peak sales by studying the drug as a prophylaxis for GVHD, as well as for chronic GVHD. These are larger commercial opportunities.

Source: http://www.thestreet.com/_yahoo/newsanalysis/biotech/10353255_4.html