ISIS CEO says investors undervalue Genzyme deal

NEW YORK Wed Jan 9, 2008 3:51pm EST

NEW YORK Jan 9 (Reuters) - The chief executive of Isis Pharmaceuticals Inc (ISIS.O) forecast on Wednesday that company shares would rebound after investors realize the true value of the drugmaker's recently announced cholesterol-drug deal with Genzyme Corp GENZ.O.

Isis shares jumped more than 50 percent to almost $22 in after-hours trading on Monday after Genzyme announced it would license Isis' experimental cholesterol fighter and could eventually pay Isis more than $1.5 billion in milestone payments and a 50 percent share of profits from the medicine.

But the stock had drifted down to $16.94 late on Wednesday, only 16 percent higher than before the Genzyme deal was announced.

"We are extremely disappointed, but we don't expect it to last," Stanley Crooke said in a telephone interview. "We think there will be a rational response to what we've accomplished. This is a drug that has worked stunningly well" in clinical trials. (Reporting by Ransdell Pierson; Editing by Andre Grenon)

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