Posts for Ticker ‘Biotech’

The Day In Biotech Stocks (January 28, 2008) (ACOR, BIIB, CELG, PHRM, CRXX, LIPD, MDVN, PCOP)

Acorda Therapeutics inc. (NASDAQ: ACOR) showed late stage trial results on its drug candidate Fampridine-SR for treating multiple sclerosis.  This data showed that Fampridine, which is designed to treat multiple sclerosis, did not increase patients’ QT interval Associated with Arrhythmia more than a placebo did.  Shares were up $4.29 at $26.07 mid-day.

Amylin Pharmaceuticals Inc. (NASDAQ: AMLN) is set to report earnings after the closing bell, with First Call estimates at -$0.44 EPS on revenues of $202.58 million Shares were up less than 1% at $32.74 on the day ahead of earnings.

Carl Icahn has nominated three individuals for the board of directors in Biogen-Idec (NASDAQ: BIIB) in his activist efforts to move the shares.  Biogen-Idec shares were down $0.90 to $58.02 mid-day.

Celgene Corporation (NASDAQ: CELG) was cleared today by German regulation to proceed with its acquisition of Pharmion. Stocks are up over 3% to $53.31 at mid-day. Pharmion Corp. (NASDAQ: PHRM) shares were up 1.8% to $67.44.

CombinatoRx Inc. (NASDAQ: CRXX) shares fell almost 7% to $4.80 mid-day on thin trading volume.  Technically there was no news today, although this followed guidance last week of losses below view.

Lipid Sciences, Inc. (NASDAQ: LIPD) announced positive trial results in non-human SIV-infected primates in its proprietary deplidated autogolous virus vaccine. Share prices were up more than 15% or $0.09 to $0.65 at mid-day.

Medivation, Inc. (NASDAQ: MDVN) rose after it announced that, based on its end-of-Phase 2 meeting with the FDA, it plans to begin a pivotal confirmatory Phase III trial of Dimebon for mild-to-moderate Alzheimer’s Disease in the second quarter of 2008.  Shares rose $2.36 to $17.21 by mid-day on this data.

Pharmacopeia, Inc. (NASDAQ: PCOP) shares fell over 10% to $4.37 at mid-day on thin-trading volume. There has been no recent news.

Jon C. Ogg
January 28, 2008

Posted on: January 28, 2008 – 1:43 pm in Biotech, , , , , , , , , , ,

Amgen Moves From Biotech to Big Pharma, With More Baggage

Amgen Inc. (NASDAQ:AMGN) did what Wall Street thought it would in its after-the-bell conference call.  The biotech giant announced layoffs to the tune 12% to 14% of its workforce, which translates to about 2,200 to 2,600 positions.  Medical, drug, and biotechs used to be the one area immune from the economy and immune from job cuts.  No longer.  The company claims this will save $1.0 to $1.3 Billion pre-tax in 2008, but it will have charges of $600 to $700 million this year and next and that includes $289 million for asset impairment and related costs reported in the second quarter. 

Amgen is also adjusting its targets: earnings per share guidance for 2007 has been changed from $4.28 to a range of $4.13 to $4.23, excluding restructuring charges, due to lower Aranesp revenues.  The new guidance is before restructuring charges.  Shares have been sliding and it just can’t the gorilla off its neck.   

It is also slowing its capital expenditures by $1.9 Billion in the 2007-2008 period and closing certain prodiuction operations.  Lastly, here is the wildcard: It says it is making choices about the highest priorities in research and development and operations that build the framework for future growth.  In other words, it is trying to focus on which drug development programs it wants to keep and which it wants to not renew or walk away from entirely.

Amgen needs to make more acquisitions, but it needs to make acquisitions in new territories that the company can ramp into. Iliypsa was a start, but that needs to go to different areas.  We have noted before how Amgen is being treated just like another Big Pharma drug stock in trouble, and Wall Street seems to agree.

Once again, this is what happens when your entire product line has a shot of becoming a Congressional target.  The good news is that it can buy back more stock in that new expanded program.  Most recently, Amgen had over $5 Billion in net cash and short-term equivalents.  This is becoming the antithesis of Fantasy Island, because right now Amgen turned its employees into a bunch of Tattoo’s all yelling "The Pain! The Pain!"……

Jon C. Ogg
August 15, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Posted on: August 15, 2007 – 4:07 pm in Biotech, , , ,

Medarex Stock Options Activity Resembles Dendreon’s Trading

Stock Tickers: MEDX, DNDN

When traders made bets and saw a move of more than 200% at one point onFriday in Dendreon (DNDN), this is the sort of news that can getbiotechs with upcoming events (and even some of the old dead biotechzombies) going.  Don’t be shocked when you look back to Friday or evenover the next two weeks as traders are parsing through trades to findwhat could be the next mover like Dendreon (DNDN).  Before readingfurther, understand that trying to look for a 200% gainer is not thenorm and trying to predict a gain or loss of anything remotely close tothis in a biotech company is one that even industry and corporateinsiders have charred their fingers on many times. 

But what can be done is looking out on the horizon as far as optionstrading and open interest is telling you, and this will at least give ashot to see where some of the smart money and aggressive traders areplacing some bets and where they see a big potential move down theroad.  Medarex Inc. (MEDX-NASDAQ)is one of those names as one of the upcoming biotech review stocks towatch.  This is already a battleground stock as traders have placedbets in favor and against this name, just like they did in Dendreon,and the short interest has risen.  The company’s financials have beenleft off for a space-saving since this is already a long note, but theyhave ample operating capital and partnerships that should keep themgoing for years.  The short interest grew from 13 million shares inFebruary to 16.7 million in March, and its market cap is almost $1.6Billion.  At a $12.72 close MONDAY, shares are in the middle of a $8.51to $16.23 52-week trading range; shares have been significantly higherand lower over the last 10 years and more.

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Posted on: April 4, 2007 – 8:04 am in Biotech, , , , , ,

Biotech Implosion: ICAgen (ICGN)

ICAgen’s (ICGN-NASDAQ) stock is being crushed in after-hours trading, although the trading volume is very light.  Shares are down 37% to $1.15 after closing down 2.6% today.  Read on, because this one sounds in trouble.

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Posted on: April 3, 2007 – 4:44 pm in Biotech, , , , , ,

Barron’s Alzheimer’s Article Only Scratches the Surface

Stock Tickers: WYE, NRMX, ELN, NVS, PFE, LLY, JNJ, AZN, TRGT, SNH, SRZ, BKD, ALC, HCR, ESC, MYGN, FRX, NYMX, ICGN, MEMY, EPIX, SI, ESALY, MRK, MATK

This weekend, Barron’s has run its cover story on which companies may stand to win in the medical war against Alzheimer’s Disease.  This really only scratches the surface of this devastating problem,even though it is addressing the pipelines that may yield newtreatments.  Barron’s notes drugs that may be able to treat the disease rather than just the symptoms in the next two years.  The article still does a good job to point out the current treatments and some of the companies that have studies that have either completed or being close to completion.   

Wyeth (WYE-NYSE) was the one noted as the best investment bet in the cover story article from Barron’s, which also was noted at the biggest discount to peers. Barron’s also notes: Neurochem (NRMX-NASDAQ) out of Canada, Elan (ELN-NYSE/ADR) in Ireland (and US) (with mixed results in recent years), Novartis (NVS-NYSE/ADR) is Switzerland (And US and elsewhere), Pfizer (PFE-NYSE), Forest Labs (FRX), Eli Lilly (LLY-NYSE), Johnson & Johnson (JNJ-NYSE) were all noted with currently "on the market" drugs in the ongoing studies for possible Alzheimer’s treatments in some form or fashion.  The current drugs from J&J, Novartis, Forest and Pfizer are really meant more as slowing-agents rather than cures.  Unfortunately, there is no magic pill that just zaps this disease.

Neurochem (NRMX) mentioned in the Barron’s article is in Phase III studies in Europe and recently completed Phase III’s in North America for its Alzhemed(TM). It has already filed to raise $102 million in aggregate securities and its balance sheet indicates it may need more cash again at some point in the near future.  This one is perhaps one of the more leveraged names in the article.

Myriad Genetics (MYGN-NYSE) has just completed enrollment ofpatients in its global Phase 3 clinical trial of Flurizan(TM) inAlzheimer’s disease, the first in a new class of drugs known asSelective Amyloid Lowering Agents (SALAs).  This was also noted briefly in the Barron’s article, but these results look promising so far even though the interim results are not planned and results will be unknown until next year.

Forest Lab’s (FRX-NYSE) fiscal March 2006 saw $505 million of $2.96Billion total sales come from Namenda (R) (not Manenda), which was approved in 2003 asan Alzheimer’s treatment.

AstraZeneca (AZN-NYSE) and Targacept (TRGT-NASDAQ) are in Phase II’s for AZD3480 to stimulate the brain’s memory neurotransmitters.

BUT…..there are many more companies here that need to be given some attention.  This is a huge field and there are many mid-cap and small-cap stocks that can be huge beneficiaries of this.  As we have said the Barron’s article is incomplete, and the same will obviously be true here because there are so many aspects to the story.

Our own Douglas McIntyre pointed out several nursing home and assisted care facility operators just on March 20, 2007 after the Wall Street Journal ran an article about the boomers reaching retirement age and the long-term forecasts in the dementia epidemic.  The facilities Doug noted there were Senior Housing (SNH-NYSE) (a REIT), Sunrise Senior Living (SRZ-NYSE), Brookdale Senior Living (BKD), Assisted Living (ALC-NYSE), and Manor Care (HCR).   There are many, many others worth note that have the potential to benefit from this.

Emeritus Corporations (ESC-AMEX) is a national provider of assisted living and Alzheimer’s and related dementia care services to senior citizens.  After the acquisition of Summerville Senior Living announced this last week it will operate 284 communities in 36 states comprising 24,448 units with a capacity for over 28,000 residents. Summerville is adding 81 communities comprising 7,935 units in 13 states which provide independent living, assisted living, and Alzheimer’s and dementia related services to seniors.  This one is more of a pure-play in the assisted living sector, but keep in mind that its stock ran up on this acquisition and its earnings has been spotty.

Nymox Pharmaceutical Corporation’s (NYMX-NASDAQ) in Canada holds some patent rights for statin use for the treatment and prevention of Alzheimer’s disease, so some of these larger statin makers could theoretically end up shelling out some royalties down the road.  Will they really?  Who knows, that’s a long-term issue. 

Icagen, Inc. (ICGN-NASDAQ) has potential candidates as lead compounds for dementia, including Alzheimer’s disease, for which the Company’s collaborator Astellas Pharma Inc. is conducting preclinical studies, and lead compounds for attention deficit/hyperactivity disorder, which were derived from the collaboration and for which the Company is conducting preclinical studies.

Memory Pharmaceuticals (MEMY-NASDAQ) just raised cash ($10M) to help fund its pipeline studies.  These conditions include Alzheimer’s disease, schizophrenia, bipolar disorder and depression.  This one recently saw its stock implode when its MEM1003 failed to show its effectiveness in acute mania in bipolar disorder, and this MEM1003 is actually being studied for Alzheimer’s.  We noted this at the time, so they better hope for better luck there on the new indication.

EPIX Pharmaceuticals (EPIX-NASDAQ) has a compound PRX-03140 which is in a Phase IIa clinical trial in Alzheimer’s disease.  Siemens (SI-NYSE/ADR) an agreement with Wyeth Pharmaceuticals to utilize Siemens’ new research imaging agent in Wyeth’s clinical studies of new therapies in development for Alzheimer’s disease.

 

Eisai Co. Ltd (ESALY-NASDAQ/OTC) has increased its research facilities in the US and is studying E2012 in preliminary Phase I of its gamma secretase modulator that is being evaluated as a potential new treatment for Alzheimer’s disease.  Merck (MRK-NYSE) and Martek Biosciences (MATK-NASDAQ) are each studying seperate tests (not related to each other).

Even in 2000, the Biotechnology Industry Organization estimated that in the United States alone the total cost of Alzheimer’s Disease was approximately $100 Billion per year.  Healthcare costs haven’t been static by any means, so you can take that number on up drastically from there.  After getting to witness on multiple personal occasions the devastationAlzheimer’s and Dementia causes to the patient, their finances, and theimpacts it has on immediate family, this is a topic of personalimportance and interest.  I have added on to the article because thisis a far reaching issue where it doesn’t really seem like one miraclealone is going to be a true cure that eradicates what is by no meansshort of an epidemic as we live longer and longer.  It is estimatedthat 5 million people in the United States alone are living withAlzheimer’s Disease.

Jon C. Ogg
March 31, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Posted on: April 1, 2007 – 12:01 pm in Biotech, Drug companies, Medical, , , , , , , , ,