Here's an interesting idea: Merck (MRK), Lilly (LLY), and Pfizer (PFE) are bankrolling a startup company to look for new technologies for drug development. Enlight Biosciences will focus on the biggest bottlenecks and risk points in the process, including new imaging techniques for preclinical and clinical evaluation of drug candidates, predictive toxicology and pharmacokinetics, clinical biomarkers, new models of disease, delivery methods for protein- and nucleic acid-based therapies, and so on.

It's safe to say that if any real advances are made in any of these, the venture will have to be classed as a success. These are hard problems, and it's not like there's been no financial incentive to solve any of them. (On the contrary - billions of dollars are out there waiting for anyone who can truly do a better job at these things). I wish these people a lot of luck, and I'm glad to see them doing what they're doing, but I do wish that there were more details available on how they plan to go about things. The opening press release leaves a lot of things unspoken, no doubt by design. (For instance, where are the labs going to be? What's the hoped-for balance of industry types to academics? How many people do they plan to have working on these things, and how will the companies involved plan to share the resulting technologies?)

Closing deals, winning drug approvals, receiving patents, announcing financial results, marketing drugs – these are the markers of progress in a biopharma enterprise, and each was in evidence last week in the world of China biopharma.

China Yongxin Pharmaceuticals Inc. (CYXN.OB), for example, announced that it has completed its previously announced reverse merger with Nutradyne Group, Inc. (see story). To celebrate the event and announce itself to the world, the company has changed the name and ticker symbol of the enterprise, broadcasting the changed business of the venture. In the first quarter of 2008, China Yongxin booked $15 million in revenue from the three divisions of its business: a chain of retail drug stores, a wholesale drug distribution business and a ginseng-based TCM drug manufacturing operation.

In a 13D filing on Amylin Pharmaceuticals, Inc. (AMLN), Carl Icahn disclosed he raised his stake in the company to 6.54% (8,959,919 shares). This is up from the 6,339,653 share stake Icahn showed in a recent 13F for the quarter ended March 31, 2008.

Icahn disclosed that he recently had discussions with the company's management and intends to have further conversations with management and members of the board of directors to discuss ideas they may have to maximize product sales and development and to enhance shareholder value.

Oncolytics Biotech Inc.'s (ONCY) cancer fighting virus, Reolysin, is the key to the company's future value, says Blackmont analyst Wayne Schnarr.

He initiated coverage on Oncolytics with a "speculative buy" rating and C$3.25 price target, representing upside of roughly 80% on the stock's current C$1.84 value.

I got back sooner than I expected from my assignment and when the plane landed and I fired up my BlackBerry, an email from Bear Stearns biotech analyst Mark Schoenebaum stuck out from the bunch that came flooding in.

Yeah, Schoenebaum is still there. On a recent conference call with clients that he invited me to listen to, Schoenebaum announced that he'll soon be working at another, as yet unidentified, firm. And as is apparently his quirky way, he played a recording of "Taps" at the start of the call because he thought might be his last at Bear. It wasn't. Anyway, I digress.

Last week, I wrote an article about Canadian Technology Companies. But beyond technology, mining, and oil, Canada is home to over 135 publicly traded life sciences related companies. The following Canadian stocks have market caps above $250 million, and trade either on the New York Stock Exchange or NASDAQ.

MDS Inc. (MDZ) is an Ontario-based developer of products and services for the development of drugs, and the treatment of diseases, including pharmaceutical contract research services and contract manufacturing services for the radio therapeutics industry. The stock has a P/E of 3, and a PEG of 3.46.

Oculus Innovative Sciences (NSDQ: OCLS) of Petaluma, CA has firmed up a plan for commercializing its Microcyn products in China, following SFDA approval two months ago. Oculus’ China distribution partner, China Bao Tai, will distribute samples of Microcyn to key opinion leaders, asking them to test the clinical effect of the product by conducting post-approval trials. The data will be used to help secure reimbursement from insurance institutions.

In China, Microcyn was approved for use in healing acute and chronic wounds, including ulcers, cuts, contusions and burns. This is a more comprehensive indication than Microsyn enjoys in the US, where the product is approved as a medical device for wound dressing.

Calando Pharmaceuticals of Pasadena, CA, received a China patent for broad coverage of all methods of using any RNA interference construct formulated in a supramolecular complex. Supramolecular complex formulations are those formed with any type of polymer. The patent also covers any pharmaceutical compositions of matter containing RNAi constructs adapted for pulmonary or nasal delivery to the lungs.

Calando Pharma is a majority owned subsidiary of Arrowhead Research Corp. (NSDQ: ARWR).

The healthcare market in China is certainly growing, and so are the companies that serve the market, though the parameters used to measure that growth may differ for each biopharma. For public companies, the quarterly earning statement delivers a significant analysis of a biopharma’s measure of success, and last week, China biopharmas continued to roll out Q1 reports that were remarkable for their uniformly positive news. But for private companies, the metrics have to be different. In ChinaBio Today last week, we published examples of both types of stories.

GenePharma, a young and growing private company that provides research tools to the hot siRNA market, was the subject of a profile that included an exclusive interview with its founder and CEO, Dr. Peter Zhang (see story). GenePharma has recently made two announcements that testify to its ambitious plans: the company is opening a new manufacturing a facility in BioBay Park near Suzhou, and it acquired a patent license from Alnylam (NSDQ: ALNY). The patent license allows GenePharma to sell its siRNA products worldwide. Combining low prices with excellent service – and an explosive market for siRNA products – GenePharma is well-positioned for growth. The company is also a textbook example of the sea turtle phenomenon, the convergence of recent historical and economic trends that has made China a preferred location for siting biopharma enterprises.

Sinobiomed Inc. (SOBM.OB) will begin a Phase II clinical trial of its malaria vaccine candidate, PfCP2.9, in Thailand in Q3 2008. Thailand is currently experiencing a malaria epidemic, which is why the trial is sited there.

In its Phase I trial, which was completed in 2004, PfCP2.9 generated a strong immune response with only mild side effects. In January 2008, Sinobiomed was awarded a 9 million RMB ($1.2 million) government grant for PfCP2.9 as part of China’s 863 Program that encourages technologically innovative products.

This is gonna be a crazy couple of days. At 9 pm last night the American Society of Clinical Oncology put nearly 5,000 studies on its website all at once.

Although ASCO says it's all about the science and protecting the "scientific integrity" of its upcoming conference, this is, frankly, an attempt to level the playing field for Wall Street.

3SBio Inc. (NSDQ: SSRX) joined the parade of China biopharmas reporting sharply higher revenues. In the first quarter of 2008, 3SBio saw its sales jump 57% to 55.5 million RMB ($7.9 million). Gross profit climbed 56% to 50.6 million RMB ($7.2 million). However, net income did not keep pace, rising a much smaller 22% to 14.2 million RMB ($2 million).

Apparently, 3SBio spent a lot of money to create the increase in revenues, because the cause for the shortfall in net income was higher spending in the sales, marketing and distribution category. This item climbed 65% to 25.6 million RMB (US$3.7 million), a figure that represents 46% of the company’s revenues. In the battle between promoting revenues or profits, 3SBio came down heavily on the side of revenues, and net income suffered as a result.

As I anxiously await the abstracts for the ASCO conference to be released, I cannot help but wonder what Wall Street is waiting for. ImmunoGen (IMGN), the biotech company that Wall Street has forgotten, is, with its partner, Genentech (DNA), about to take the ASCO world by storm when data is released concerning Genentech's new breast cancer treatment, Trastuzumab-DM1.

Schering-Plough (SGP) has had its share of troubles over the years, but the company has also seen itself saved by some pretty unlikely compounds. Vytorin (ezetimibe) is the example I’ve spoken about here, and if the drug doesn’t seem like a savior at the moment, well, you have to keep in mind that it was the biggest thing for them since Claritin went off-patent ten years ago.

Now there’s another one potentially coming up. Expectations are building for a thrombin receptor antagonist compound, SCH 530348. And I have a history with this one, too: while the labs down one hallway from me were discovering ezetimibe, down the other hallway they were laying the foundation for this one. There’s a big difference, though, in the way I saw the two.

Amgen (AMGN) currently concerns me because of the possible competitor to Epogen, which is a large portion of their revenue. Though this uncertainty may be “priced into the stock”, the fact that the decision is uncertain means there are negative and positive outcomes priced in.

China-based biopharmas were rolling out their financial reports from Q1 last week, and the results were uniformly positive – revenues and profits were substantially higher than the comparable period a year ago. That good news, however, is not reflected in the price of most companies’ shares, which is in most cases lower than it was last year at this time. In general, stock buyers are more wary these days, of course. It also seems as though investors are not paying attention to the reality of the situation, which is that China biopharmas are turning in strong performances but not being recognized for their accomplishments. Look at these three examples:

American Oriental Bioengineering (NYSE: AOB) was one such China biopharma reporting last week, and it recorded greatly improved financial results in its first quarter (see story). Revenues climbed 51% and net income climbed 46%. Earnings per share, increasing just 20%, were not as positive. They lagged because of an increase in number of outstanding shares. American Oriental was helped by two adroit acquisitions, transactions that were so successful the company promised to continue seeking targets. For all of 2008, American Oriental currently anticipates that revenues will reach $245 million, a rise of 50%, on which it expects net income to attain a level of $62 million.

Amgen (AMGN) is in major belt-tightening mode. Still it held its annual shareholder shindig at the swanky Four Seasons Hotel in Westlake Village, CA.

The 400-500 investors who showed up were treated to valet parking, soft drinks, and a nice spread of cheeses, vegetable crudite, fruit and sweets. (My producer saw one woman stuffing her purse on her way out with bottled drinks.)

There's no money left under the pillow, but Amgen (AMGN) execs and directors have been handed a gift. One of the most outspoken, large, individual investors in the biotech company who's been calling for the Board and CEO to go won't be attending its annual shareholder meeting after all.

Steve Silverman who has owned Amgen shares for about two decades and has gotten "very rich" off the investment, was the self-appointed ringleader of a shareholder protest of sorts.

Every few years, you hear talk of a renaissance in natural products-based drug discovery. Well, this news should postpone the next round of optimism for a bit longer: Merck (MRK) is cutting their natural products program entirely. They've had a long history in that area, but no more. That C&E News item includes an interesting detail:

"The company disclosed that it would also be closing its 50-year-old natural products drug discovery operation based in Madrid after a Merck executive inadvertently included the plan in a PowerPoint presentation to an audience that included Merck employees."