3SOF

Novartis Can't Say No
Wednesday June 7, 12:14 pm ET
By Stephen D. Simpson, CFA

I'm beginning to wonder whether there are any deals that Novartis (NYSE: NVS - News) hasn't accepted in the past few quarters. In the last few days, the company has sealed three separate deals to add compounds to its pipeline -- at the cost of hard cash.

Today, news broke that Novartis will be buying British biotech company NeuTech Pharma for about $569 million in cash. For that price, Novartis is getting a company focused on treatment-resistant infections, with two late-stage drugs in the pipeline. Mycograb, targeted at dangerous fungal infections, could be submitted for U.S. approval in 2009, while Aurograb (for staph infections) looks like it's about a year later in the queue.

But wait, there's more!

Yesterday, the company announced a deal with Human Genome Sciences (Nasdaq: HGSI - News) for the rights to Albuferon, a hepatitis C treatment. Assuming this drug reaches approval (a phase 3 trial should begin later this year), the companies would cooperate in the U.S. market, while Novartis would handle foreign sales and distribution. Under this deal, Novartis pays $45 million up front and potentially more than $500 million in future milestones.

But wait, there's even more!

Novartis also announced a licensing deal with Genelabs Technologies (Nasdaq: GNLB - News). The deal will cost Novartis about $20 million over two years, and as much as $175 million in potential milestones, if a successful drug comes out of this agreement. The disease in question? Yep, you guessed it -- hepatitis C.

Obviously, Novartis wants to establish a major franchise in hepatitis C, given both of these deals and past agreements with Idenix (Nasdaq: IDIX - News) and Anadys (Nasdaq: ANDS - News). There's certainly a ripe and underserved market here, and I also think that Novartis has a logical underlying philosophy. It's looking at several different and possibly complementary approaches to the disease, with the hope of combining them in different ways to treat various subtypes of the disease and patients who don't adequately respond to existing therapies.

If you're a company with a hep-C drug or a development program in that area, stay by the phone -- Novartis will probably be calling you, too. As for Novartis shareholders, I'm not quite sure what to think. I know it takes money to build a pipeline, but these guys have been doing deals left and right. Then again, we're talking about a strong pharmaceutical company in a weak sector that's still somewhat undervalued -- not exactly the worst story I've seen this week.

today let´s play rock and roll...

in pre-market +15%

Press Release Source: Genelabs Technologies, Inc.


Genelabs Announces Forecast of Mid-Year Cash Level and Notification From Nasdaq
Friday June 9, 8:00 am ET


REDWOOD CITY, Calif., June 9 /PRNewswire-FirstCall/ -- Genelabs Technologies, Inc. (Nasdaq: GNLB - News) announced today that, after its receipt of $12.5 million in up-front payments under its recently announced agreement with Novartis, Genelabs expects its June 30, 2006 cash and cash equivalents to be approximately $15 million. The mid-year cash level anticipated by the company accounts for costs related to closing the transaction and anticipated second quarter operating expenses. The company estimates that this cash balance together with anticipated funding under its hepatitis C virus collaborations with Novartis and Gilead, and in the absence of earning any milestones, would be sufficient to fund its current operations until approximately the beginning of 2008.


"We are committed to maximizing value for our shareholders," stated James A.D. Smith, President and Chief Executive Officer. "The recent collaboration provides us with additional needed cash and allows us to continue to move forward with our three separate hepatitis C virus drug discovery programs, two of which now have top-notch corporate partners. There is a great need for improving the safety, efficacy and dosing convenience in HCV treatment, which we believe will most likely be accomplished through multi-drug treatment regimens. Because each of our programs focuses on a distinct anti-HCV mechanism, they have the potential to be complementary in such a regimen. In addition to the cash infusion, partnering also provides substantial potential upside with reduced risk, allowing us some additional flexibility as we continue to evaluate new opportunities."

Genelabs also announced that on June 5, 2006, the company received notification from The Nasdaq Stock Market that for 30 consecutive business days the bid price of the company's common stock had closed below the $1.00 minimum per share required for continued listing under Marketplace Rule 4310(c)(4). The company has 180 calendar days, or until December 4, 2006, to regain compliance. The Nasdaq letter also indicated that if the bid price of the company's common stock closes at $1.00 per share or higher for a minimum of 10 consecutive business days, Genelabs would regain compliance. The 30 consecutive business day period for which Genelabs common stock closed below $1.00 per share ended on June 2, 2006, the last trading day before Genelabs announced its HCV collaboration with Novartis. On each of the four business days since Genelabs received the letter, shares of Genelabs' common stock have closed with a bid price greater than $1.80 per share.

Genelabs is presently in the process of appealing an earlier Nasdaq staff determination related to its compliance with Nasdaq Marketplace Rule 4310(c)(2)(B), which requires the company to have either a minimum of $2,500,000 in shareholder's equity or a market capitalization of $35,000,000.

About Genelabs

Genelabs Technologies, Inc. is a biopharmaceutical company focused on the discovery and development of pharmaceutical products to improve human health. We have built drug discovery and clinical development capabilities that can support various research and development projects. Genelabs is currently concentrating its capabilities on developing a late-stage product for lupus, discovering novel compounds that selectively inhibit replication of the hepatitis C virus and advancing preclinical development of compounds from this hepatitis C virus drug discovery program. We believe that these high-risk, potentially high reward programs focus our research and development expertise in areas where we have the opportunity to generate either first-in-class or best-in-class products that will address diseases for which current therapies are inadequate. For more information, please visit www.genelabs.com.

NOTE: Genelabs® and the Genelabs logo are registered trademarks and Prestara(TM) is a trademark of Genelabs Technologies, Inc.

NOTE ON FORWARD LOOKING STATEMENTS AND RISKS: This press release contains forward-looking statements including statements regarding the June 30, 2006 cash level, the length of time which the company's cash would be able to fund current operations, the receipt of research funding, the earning of milestone payments, the appeal of the staff determination letter from Nasdaq, the continued trading of the company's stock on the Nasdaq Capital Market, and the compliance with Nasdaq Capital Market listing requirements. These forward-looking statements are based on Genelabs' current expectations and are subject to uncertainties and risks that could cause actual results to differ materially from the statements made. Uncertainties and risks include, without limitation, delisting of Genelabs common stock from the Nasdaq Capital Market; fluctuations in Genelabs' stock price resulting in the fluctuation of the market capitalization of Genelabs; potential development failures or setbacks in our HCV research programs or in our collaborations with Novartis and Gilead; progress and announcements by competitors regarding their HCV programs; regulatory problems or delays regarding Prestara(TM), including an adverse response from the FDA or a determination to discontinue development of Prestara; lease termination; and increases in expenses and Genelabs' capital requirements. Please see the information appearing in Genelabs' filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K, under the captions "Risk Factors" and "Forward-Looking Statements" for more discussion regarding these uncertainties and risks and others associated with the company's research programs, early stage of development and other risks which may affect the company or cause actual results to differ from those included in the forward-looking statements. Genelabs does not undertake any obligation to update these forward-looking statements or risks to reflect events or circumstances after the date of this release.

Contact: Matthew M. Loar


              Chief Financial Officer
              Phone: 650-562-1424
--------------------------------------------------------------------------------
Source: Genelabs Technologies, Inc.

AP
Genelabs Can Fund Operations Until 2008
Friday June 9, 10:57 am ET 
Genelabs Says It Can Fund Operations Until 2008 With Current Cash Obligations


REDWOOD CITY, Calif. (AP) -- Genelabs Technologies Inc. jumped Friday after the biotech drug maker said that upfront payments from a recent agreement with Swiss drug maker Novartis AG should give it enough cash to fund operations until the beginning of 2008.


Shares of Genelabs rose 24 cents, or 12.8 percent, to $2.11 in morning trading on the Nasdaq at more than triple their average volume. Shares have traded between 70 cents and $3.55 over the past 52 weeks.

The company announced on Monday it would receive a $12.5 million upfront payment from a collaboration with Novartis to develop hepatitis C treatments. The upfront payment will give the company a total of about $15 million in cash and equivalents by June 30.

Genelabs said that even without milestone payments from Novartis and Gilead Sciences Inc., it should be able to fund company operations until the beginning of 2008.

The company also said that it received a notice from the Nasdaq Monday warning that the company risked its listing as the stock had traded under $1 per share for 30 consecutive business days. Genelabs needs to keep its share price above $1 for 10 consecutive business days to comply with listing requirements.

Shares broke the under-$1 slump after the announcement of the Novartis deal on Monday, and have stayed above $1 since.

Genelabs is already appealing an earlier Nasdaq warning that Genelabs fell under the shareholder capitalization requirements.

bizjournals.com
Nasdaq warns Genelabs about possible delisting
Friday June 9, 11:38 am ET


Genelabs Technologies Inc. said Friday it has been warned by Nasdaq that it could be delisted because its stock traded below the $1 minimum required for 30 days.
Redwood City-based Genelabs (NASDAQ:GNLB - News) has 180 calendar days, or until Dec. 4, to close at $1 per share or higher for a minimum of 10 consecutive business days to regain compliance.


The period for which Genelabs common stock closed below $1 per share ended on June 2, the last trading day before Genelabs announced its HCV collaboration with drug giant Novartis AG (NYSE:NVS - News).

On each of the four business days since Genelabs received the letter, shares of Genelabs' common stock have closed with a bid price greater than $1.80 per share.

In midday trading Friday, the company's stock was at $2.09, an 11.76 percent increase.

Genelabs also said it expects its cash and cash equivalents to be about $15 million at the mid-year point, fueled by $12.5 million in up-front payments from Novartis. The company said the cash level accounts for costs related to closing the transaction and anticipated second quarter operating expenses. The company estimates that this cash balance together with anticipated funding under its hepatitis C virus collaborations with Novartis and Foster City-based Gilead Sciences Inc. (NASDAQ:GILD - News) will be sufficient to fund its current operations until approximately the beginning of 2008.

Published June 9, 2006 by the Silicon Valley/San Jose Business Journal

Genelabs Technologies (GNLB:Nasdaq -  rose 8% after the drugmaker said it should have enough cash to fund operations until the beginning of 2008. Including $12.5 million in payments from licensing partner Novartis (NVS:NYSE - commentary - research - Cramer's Take), Genelabs expects to have a mid-year cash level of about $15 million. "The recent collaboration provides us with additional needed cash and allows us to continue to move forward with our three separate hepatitis C virus drug discovery programs, two of which now have top-notch corporate partners," the company said.

Separately, Genelabs received notification from Nasdaq officials that it is out of compliance with the market's bid price regulations, which require a stock to not trade below $1 for 30 consecutive business days. Shares of the company had traded below $1 a share until June 2, the last trading day before Genelabs announced a collaboration agreement with Novartis. Since the announcement, shares have traded above the $1 threshold. The company has until Dec. 4 to regain full compliance, it said. In the meantime, the company is in the process of appealing an earlier Nasdaq compliance issue related to minimum shareholder equity and market capitalization requirements. Shares recently were up 15 cents to $2.02.


Volume: 4,132,879
Avg Vol (3m): 612,762

Support @ $1.95...1.85...1.75
Resistance @ $2.19
MACD is Bullish

Technicals
Percentage Gainer

Last Price Quote is:
45.70%above 13-day EMA
60.82%above 50-day EMA
RS Rating: 73 

Fundamentals
Key Data:
Market Cap (M): $13.72 
P/E Ratio: NA 
PEG Ratio: N/A 
Next Earnings: N/A
Last Analyst Rating: Hold

GNLB : having good pre-market trading. Looks ready to climb back up. News out this morning. Using two year ,,weekly chart and six month daily
Link for pre-market trading
http://tinyurl.com/fw6ho

Press Release Source: Genelabs Technologies, Inc.
Genelabs Announces Issuance of U.S. Patent on DHEA Composition and Method
Monday June 12, 8:00 am ET

REDWOOD CITY, Calif., June 12 /PRNewswire-FirstCall/ -- Genelabs Technologies, Inc. (Nasdaq: GNLB - News) announced today the issuance of U.S. patent No. 7,045,513 entitled "DHEA Composition and Method." The patent claims pharmaceutical formulations of dehydroepiandrosterone, or DHEA, in certain purified polymorphic forms. DHEA is the active ingredient in Prestara(TM), the company's investigational drug for systemic lupus erythematosus, or lupus. Genelabs formulation of Prestara is a highly purified synthetic form of DHEA, or prasterone, and the patent covers the specific polymorphic formulation of DHEA used in Genelabs' most recent clinical trials. The patent is scheduled to expire in August 2022.

The chart.....

Update to this thread......

Technicals
13-day EMA Cross Above 50-day EMA 

Last Price Quote is:
15.55%above 13-day EMA
15.94%above 50-day EMA
RS Rating: 14 

Fundamentals
Key Data:
Market Cap (M): $29.58 
P/E Ratio: NA 
PEG Ratio: N/A 
Next Earnings: N/A
Last Analyst Rating: Hold

Pressed for time tonight.
Will leave the end of day chart

Hmmmm...... nice set-up

I like it !.....
Very nice indeed Terliso......Thanks for the update...Applaud 

Quote from: setravis on October 13, 2006, 05:31:21 PM
I like it !.....
Very nice indeed Terliso......Thanks for the update...Applaud 

I actually bought this one today, good volume 9 times the average daily volume....thanks Setravis

If you so happen to have created a thread on GNLB.
You will now find it here......
All Threads on GNLB have been merged.
Please use the search before you start a new thread on a Stock Pick !

Thank You...and good trading to all ! 

Has brought the price back to the reverse split range of 12/19/05


52wk Range: 0.70 - 2.55
Volume: 650,672
Avg Vol (3m): 187,654

Technicals
Last Price Quote is:
12.75%above 13-day MA
28.00%above 50-day MA
RS Rating: 96 

Fundamentals
Key Data:
Market Cap (M): $68.06 
P/E Ratio: NA 
PEG Ratio: N/A 
Next Earnings: N/A
Last Analyst Rating: Hold