Sanofi-Aventis (NYSE:SNY) Gets Positive Feedback from Genzyme for Alemtuzumab

Sanofi-Aventis (NYSE: SNY) received positive data from Genzyme concerning a phase 2 clinical trial for its experimental multiple sclerosis medication, alemtuzumab. The estimated value of the drug candidate was a key sticking point in the negotiations between the biotechnology company and its acquirer. In the final $20.1 billion acquisition deal, completed earlier this month, Sanofi agreed to provide Genzyme shareholders with conditional payments based on milestones connected with the drug, as well as with other drugs in Genzyme’s stable.

Genzyme executives noted that additional five-year patient data from its completed Phase 2 trial showing that almost two-thirds of patients “remained free of clinically-active disease as much as four years after most patients received their last course of the investigational drug.” These new data were presented at the American Academy of Neurology’s annual meeting in Hawaii.

The trial compared alemtuzumab, which would be marketed under the name Lemtrada, if approved, to the approved MS therapy Rebif, made by EMD Serono and Pfizer (NYSE:PFE). The new data reveals that 65 percent of alemtuzumab-treated patients were free of clinically-active disease, compared to 27 percent of patients taking Rebif. What this means that for five years, those two-thirds of patients did not suffer any relapses or have a sustained increase in disability, as measured by the Expanded Disability Status Scale.

The data also showed patients taking Genzyme’s drugs were twice as likely to see a sustained improvement in their vision, a common complication of the disease, as were those using Rebif.

Two phase 3 studies on the drug candidate are currently underway. Sanofi plans to file for U.S. Food and Drug Administration approval for alemtuzumab in early 2012. Alemtuzumab has been granted fast track status, meaning that the review time will be shortened to six-months.

Sanofi-Aventis was trading at $37.31, up $0.22, or 0.59 percent, as of 2:39 PM EDT.

Intel (INTC) (BLK) (GENZ) in Heavy Trading

Intel (NASDAQ:INTC), BlackRock Inc. (NYSE:BLK) and Genzyme Corp. (NASDAQ:GENZ) were all heavily trading in after-hours action after close Friday.

Among active movers on the Nasdaq, Genzyme topped the list in volume as it exited the index in response to being acquired by Sanofi-Aventis SA (NYSE:SNY).

BlackRock will be the company replacing Genzyme on the Nasdaq. They were also among heavy volume movers after the Friday close.

Intel also made a big move, as volume was heavy after having its near-term EPS estimates lowered by Macquarie Equities Research, which said they see “weaker-than-expected builds in the first quarter.”

BlackRock closed Friday at $202.43, jumping $1.42, or 0.71 percent. After hours they were trading down at $201.67, falling $0.76, or 0.38 percent. Volume was about 17 times above the normal 3-month daily average.

Genzyme closed at $76.01, falling $0.14, or 0.19 percent. After hours they were trading up at $76.18, gaining $0.17, or 0.22 percent. Volume for them was about 11 times above its 3-month daily average.

Intel closed Friday at $19.72, dropping $0.46, or 2.28 percent. Shares traded were over 20 million above the 3-month daily average.

General Motors (GM), Citigroup (C),LyondellBasell (LYB), JPMorgan (JPM) Top Hedge Fund Picks

General Motors (NYSE:GM), Citigroup (NYSE:C), LyondellBasell (NYSE:LYB) and JPMorgan (NYSE:JPM) are the top four investment picks of hedge fund managers, according to a list compiled by Seeking Alpha.

The remaining top six picks of hedge fund managers of the top 10 in order, are Google (GOOG), Genzyme (GENZ), Hewlett Packard (HPQ), Cisco (CSCO), Williams Cos Inc (WMB) and Teva Pharmaceutical (TEVA).

Alpha said this about General Motors being No. 1: "Hedge funds snatched 6% of GM’s outstanding shares and amassed a $3.4 billion position. There were 112 hedge funds with GM positions at the end of December. John Griffin’s Blue Rigde, William Ackman’s Pershing Square, George Soros, David Tepper’s Appaloosa, Roberto Mignone’s Bridger Management, Richard Perry’s Perry Capital and Leon Cooperman’s Omega Advisors are among the several high profile hedge funds with GM positions."

General Motors closed Tuesday at $32.72, up $1.02, or 3.22 percent. Citigroup closed at $4.64, up $0.12, or 2.65 percent. LyondellBasell ended the session at $40.73, up $0.90, or 2.26 percent. JPMorgan closed at $46.40, up $1.21, or 2.68 percent.




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Paulson Adds Transocean (NYSE:RIG), Anadarko (NYSE:APC), Keeps Core Holdings

As a number of hedge funds and managers of holding companies are revealing their investments in the fourth quarter via 13-F filings with the SEC, a trend is emerging as far as funds and companies holding onto their core assets, while also venturing a little further into energy and financial stocks.

That's true with John Paulson and his fund as well, which kept his top long-term holdings in place, but added big in energy and healthcare.

For energy, he took big stakes in Anadarko Petroleum (NYSE:APC) and Transocean (NYSE:RIG); both connected to BP's (NYSE:BP) oil spill.

Paulson added 7.8 million shares of Anadarko and 7.2 million shares of Transocean to his portfolio. His fund now owns over 21 million shares of Anadarko.

In the health sector, he took new stakes in Medtronic Inc (NYSE:MDT), Teva Pharmaceutical (NASDAQ:TEVA) and Baxter International (NYSE:BAX).

He also boosted his stake in biotechnology firm Genzyme Corp (NASDAQ:GENZ) to 6.8 million shares, which is close to being taken over by France-based Sanofi-Aventis.

Core holdings he continues to hold onto are SPDR Gold Trust (NYSEArca:GLD), AngloGold Ashanti (NYSE:AU), Citigroup (NYSE:C) and Bank of America (NYSE:BAC).

In what appears to be based on Paulson's thoughts people are spending more, he dropped discount retailer (NYSE:FDO) from his holdings and added J. Crew (NYSE:JCG).

Genzyme (NASDAQ:GENZ) EPS Outlook Lower on Weak Cerezyme, Fabrazyme Rebound

The strength of the recovery of Cerezyme and Fabrazyme haven't met Genzyme's (NASDAQ:GENZ) expectations, and consequently they aren't going to meet earnings guidance for the fourth quarter of 2010.

Barclays says, "GENZ CEO Henri Termeer provided a corporate update today at an industry conference with focus on supply recovery, business growth and it's late stage pipeline, in particular Campath MS. Pre-release of 4Q10 results suggests lower-than-expected EPS of $0.80-$0.85 versus prior guidance of $0.90-$0.95 on weaker-than-expected Cerezyme and Fabrazyme recovery and sales of $224M and $62M versus prior guidance of $235M-$245M and $70M respectively. Updated EPS guidance for 2011 was also lowered to $4.10-$4.35 from $4.30-$4.60. Capacity expansion remains on track with validation runs expected in January although GENZ continues to operate without appropriate inventory cushions pending Framingham approval by YE11."

Barclays reiterates an "Equalweight" rating on Genzyme, which closed Wednesday at $72.34, level with Tuesday's close. Barclays has a price target of $75 on Genzyme.