This Week in Biotech: Dynavax Technologies Corporation (DVAX), Zogenix, Inc. (ZGNX)

Biopharmaceutical Optimer Pharmaceuticals, Inc. (NASDAQ:OPTR) jumped 11% on the week after announcing the resignation of Pedro Lichtinger as CEO and a planned strategic review for the company. For those investing-savvy folks, “planned strategic review” is simply a code word for “we’re looking to sell part or all of our company to maximize shareholder value.” However, Optimer could be a tough sell, even with $124 million in cash in the bank. Its only FDA-approved drug, Dificid for Clostridium difficile-associated diarrhea, sold only $62.4 million for the year. I can’t see too many pharmas stepping up and paying a big premium (if any premium) for a company valued at nine times the sales of its only approved drug.

On the downside, shares of Affymax, Inc. (NASDAQ:AFFY) shares were eviscerated after its marketing partner, Takeda Pharmaceuticals, and the FDA, decided to voluntarily recall all lots of anemia drug Omontys. Of the more than 25,000 patients that have been treated with Omontys, about 0.2% experienced hypersensitivity, with a third of those suffering severe reactions. Ultimately, 0.02% of all treated patients died. With the only two other drugs in Affymax’s pipeline using Omontys, Affymax’s current and ongoing pipeline is completely wiped out unless it can come to some sort of resolution to get Omontys back on the market. Shares plunged 84% on the week.

Finally, chronic weight-management drug provider VIVUS, Inc. (NASDAQ:VVUS) disappointed Wall Street with lackluster sales of Qsymia. Wall Street had expected VIVUS to report $3 million in sales and a loss of $0.26. Instead, VIVUS’ sales were light by $1 million, and losses were $0.31 worse than expected. Increased insurance coverage should help VIVUS, as it noted early on that consumers are extremely resistant to paying medication costs out-of-pocket, but sales are still limping along much slower than anyone had expected.

The article This Week in Biotech originally appeared on Fool.com.

Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.

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