BOSTON (Dow Jones) -- Discovery Partners (NASDAQ-NMS:DPII) shares soared on Monday following news that its intended merger partner, Infinity Pharmaceuticals, had inked a co- development deal with biotech leader MedImmune (NASDAQ-NMS:MEDI) .
The Amex Pharmaceutical Index (DRG) edged up 0.7% to close at 347.76 and the Amex Biotechnology Index (BTK) advanced 1.3% to 668.32 following a relatively placid trading session for the sectors on Wall Street.
Shares of Discovery (DPII) closed up 9% at $3.52 after hitting a session high of $4.24. Privately held Infinity announced that it has signed a deal with MedImmune (NASDAQ-NMS:MEDI) (MEDI) , which will pay $70 million to Infinity upfront, and make up to $430 million in future milestone payments.
Terms call for Infinity and MedImmune (NASDAQ-NMS:MEDI) to jointly develop tumor-fighting cancer therapies. The agreement also covers Infinity's IPI-504, an oncology drug candidate currently in Phase I studies.
Discovery shareholders are scheduled to vote on the proposed Infinity merger on Sept. 12.
MedImmune's (NASDAQ-NMS:MEDI) shares traded modestly higher, hopping 1% to $28.65.
Also a big mover, SuperGen (NASDAQ-NMS:SUPG) (SUPG) jumped 7% to $4.24. The company said last week it has completed the sale of North American commercial rights to its drug Nipent and SurfaceSafe to Mayne Pharma Ltd.
Corcept Therapeutics (NASDAQ-NMS:CORT) (CORT) declined 10% to $1.39. Shares of the drugmaker lost more than 50% of their value on Friday after the company announced disappointing results for a Phase III clinical trial for Corlux, its psychiatric drug candidate.
(END) Dow Jones Newswires 08-28-06 1909 Copyright (c) 2006 Dow Jones & Company, Inc.
