MSGI re RGEN:
The litigation between RGEN and BMY over CTLA4-Ig was resolved in BMY's favor in the second half of 2004. RGEN has its version of CTLA4-Ig; BMY has its version. The court determined that there was no infringement.
The FDA hearing on BMY's application for the use of its version of CTLA4-Ig for the treatment of rheumatoid arthritis is set for hearing on September 6. BMY was given "fast-track" status by the FDA, understandably regarded as a good sign. According to RGEN's 10-K and website, if the FDA approves BMY's application, RGEN "will seek to license" its CTLA4-Ig patent rights to BMY. Although I can find nothing written down anywhere, I'm guessing there is an understanding between the companies in place already. It seems odd to me to say in a 10-K that one will "seek" to do something, unless one has a pretty good idea that the attempt will be successful. I think this is why the recent runup in the stock. It is presumed that FDA approval for BMY will be good news for RGEN, even though no-one is quite sure how to quantify it. I bought a few shares early this month, and will probably be adding more once I get a better sense of this RGEN/BMY potential business relationship.
The litigation against ImClone is ongoing. However, there is nothing in the pleadings recently filed, or in proceedings that are imminent in the litigation, that would account for a rise in the price of RGEN.
I think there's a lot to like about this stock, and am once again indebted to MSGI for a terrific find.
Steve
