ISIS Collaboration With GlaxoSmithKline Not Favorable

Analysts at Cowen & Co maintain their "neutral" rating on Isis Pharmaceuticals (NASDAQ: ISIS).

Isis and GlaxoSmithKline (NYSE: GSK) have collaborated as a result of which ISIS will develop a maximum of six antisense candidates for rare and serious diseases. Cowen & Co does not consider the terms of this collaboration as particularly favorable to ISIS and believes that “... collaborations that allow a partner to opt-in following proof-of-concept data off load too much of the cost and risk associated with drug development to the outlicensing company.”

According to the analysts, ISIS should spend more of its capital to conduct clinical trials in “what are likely to be niche patient populations.” Isis can expand its shareholder value by advancing owned assets through Phase II or even Phase III trials.

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