BioCentury
ARTICLE | Finance

Ebb & Flow

October 15, 2007 7:00 AM UTC

Profit-taking by investors after its IPO lock-up expired may have been behind last week's share price dip for cancer and autoimmune company Synta (SNTA), which shed $2.24 (20%) to $8.76 despite announcing a potentially blockbuster deal with GlaxoSmithKline (LSE:GSK; GSK).

The deal is to develop STA-4783, a small molecule heat shock protein 70 (Hsp70) agonist expected to begin a Phase III trial this quarter to treat metastatic melanoma. GSK will pay $80 million up front and up to $585 million in development and regulatory milestones. ...