New short-interest data suggest traders are now increasing their directional bets against biotech stocks. Pfizer Inc. (NYSE: PFE) and Merck & Co. (NYSE: MRK) are in the top 10 of all large-cap stocks with the greatest increase in the number of shares shorted.

Eli Lilly has the FDA’s OK to market its Effient blood thinner, but the black-box warning on its label is so strong that it’s hard to believe it can dent the market share of the Sanofi Aventis (NYSE: SNY)/ Bristol Myers Inc. (NYSE: BMY) drug Plavix.

OSI Pharmaceuticals Inc. (Nasdaq: OSIP) announced new data from its Phase III Saturn study of Tarceva, and it’s likely an incremental positive for the cancer drug over rival Eli Lilly & Co.’s (NYSE: LLY) drug Altima.

-The 24/7 Wall St. Team

You can read that full report here at the BioHealthInvestor.com website.

Jon C. Ogg
May 13, 2009

Much of the strength in the cancer stock sector is due to moves by Dendreon (DNDN), Cell Genesys (CEGE), and Geron (GERN).Home furnishing stocks are being pushed higher by shares in Pier 1 (PIR) and Williams Sonomo (WSM), both of which are down over 50% year-to-date.

Among the aircraft leasing stocks the price advance leaders are Aercap (AER) and Aircastle (AYR).

The weakest sector over the last week in the Tickerspy survey is exchange stocks, down mostly due to weakness in CME group (CME).

Data from Tickerspy.

Douglas A. McIntyre

Fannie Mae (FNM) Almost a better deal. Sells off to $.65 from 52-week high of $68.60.

Biodel (BIOD) Concerns over drug trial. Drops to $4.34 from $25.69.

Authentec (AUTH) Revises guidance. Plunges to $2.40 from 52-week high of $19.81.

Cell Genesys (CEGE) Still hurting a week after drug trial news. Slips to $.67 from 52-week high of $4.67.

Douglas A. McIntyre

Nexmed (NEXM) Drug trial problems. Falls to $.23 from a 52-week high of $.1.87.

Cell Genesys (CEGE) Drug trial problems. Plunges to $.69 from 52-week high of $4.67.

Amylin (AMLN) Deaths due to one of the company’s drugs. Dips to $19.92 from 52-week high of $51.10.

Douglas A. McIntyre

CEGE blew up today. The company ended a clinical trial of its prostate cancer vaccine GVAX because patients who were treated with the vaccine were dying more frequently than those only given a standard treatment.

That bit of bad news took the shares down to $.69 from a 52-week high of $4.67.

The market cap of Cell Genesys is only $62 million now, so Dr. Sherwin is doing a bit too well.

Douglas A. McIntyre

Cell Genesys (NASDAQ: CEGE) offered 7.1 shares for $30 million in gross proceeds to a single institutional investor at $4.22 per share to finance product development and general corporate purposes. Shares are down 6% to $42.12. The 52-week is $30.34 to $49.18.

Imclone Systems Inc. (NASDAQ: IMCL) is down almost 5% after a downgrade by Morgan Stanley, citing belief that Erbitux will fail to reach expectations. Shares are trading at $42.31 in mid-day trading. The 52-week range is $30.34 to $49.18.

XOMA Ltd. (NASDAQ: XOMA) down over 8% after reporting larger than expected first quarter losses. They showed a loss of $14.2 million and revenues of $12.1 million, failing to hit estimates by Thomson of $16.4 million. Shares trading at $2.12. The 52-week range is $1.96 to $4.39.

Tercica Inc. (NASDAQ: TRCA) up almost 7% today in anticipation of positive first quarter earnings to be announced after market close. Shares trading at $4.77on a 52-week range of $4.30 to $8.11.

Rachel Lopez
May 12, 2008

The warrants will have a strike price of $10.00 and can purchase 8.5 million shares. The proceeds from the offering will be used to finance developmental products such as its GVAX treatment for prostate cancer, as well as for general corporate purposes.

The offering is expected to close Wednesday. Credit Suisse Securities LLC is the lead placement agent for the offering.

The cancer focused biotech company is trading down over 3% in early morning trading at $3.77. The market cap sits at approximately $300 million and the 52-week range spans $1.78 to $4.71.

You can also sign up to our open email distribution list to see about other secondary offerings, IPO’s, break-ups, spin-offs, and more.

Rachel Lopez
May 12, 2008

For exclusive worldwide commercial rights to for prostate cancer, Takeda is paying Cell Genesys $50 million upfront with additional milestone payments totaling up to $270 million.  The additional payments relate to regulatory approval and commercialization for prostate cancer in the U.s., E.U., and in Japan.

Takeda will pay tiered double-digit royalties based on net sales in the United States and it will pay flat double-digit royalties based on net sales in all other regions.  Takeda will also pay from here on out for all external development costs associated with the ongoing Phase 3 studies of GVAX immunotherapy for prostate cancer.  Takeda will also pay for all additional development costs and all of the commercialization costs.  Cell Genesys will maintain manufacturing and supplies of the product and will retain rights to co-promote GVAX immunotherapy for prostate cancer in the United States.

GVAX immunotherapy for prostate cancer is currently in two Phase 3 clinical trials, VITAL-1 and VITAL-2, in advanced prostate cancer patients. It is also under FDA FAST TRACK designation and both trials have completed Special Protocol Assessment agreements.

The company currently estimates that there will be sufficient events to trigger the final analysis for VITAL-1 in the second half of 2009. Patients are continuing to enroll in the VITAL-2 trial at nearly 100 clinical sites in North America and Europe. Cell Genesys has targeted the completion of enrollment for VITAL-2 with approximately 600 patients in the first half of 2009.  It then expects there will be sufficient events to trigger the pre-planned interim analysis in the same time frame.

The options may say it all.  The JANUARY-2010 $2.50 CALLS last traded at $1.30, which is greater than a 50% premium for a slightly out of the money call.  In fact, buying a JANUARY-2010 $2.50 straddle would cost more than owning the stock.  No wonder the open interest isn’t all that high.

Some may argue that this undermines the value of the prostate cancertreatment’s value on a fully-rolled-out basis if it reaches fullapproval and is a success because this has blockbuster potential.  Others will argue that this gets itsliquidity back in line with its long-term debt.  Shares of Cell Genesys closed down under 1% at $2.35 today, and the 52-week trading range is $1.78 to $7.30.  Its market cap is a mere $185 million. 

Jon C. Ogg
March 31, 2008

Jon Ogg produces the Special Situation Investing Newsletter and he can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Cell Genesys, Inc. (NASDAQ: CEGE). Shares continue to climb following report Friday citing that vaccine candidate GCAX showed immune response in prostate cancer patients. Shares are trading at $2.93 in mid-day trading. The 52 week range is $1.78 to $7.30.

IDM Pharma, Inc. (NASDAQ: IDMI). Downgraded by Rodman & Renshaw. Shares plummet over 18% to $2.57. The 52 week range is $0.57 to $10.75.

Imclone Pharmaceuticals (NASDAQ: IMCL). Halted testing for competitor Onyx Pharmaceuticals (NASDAQ: ONXX) in the lung cancer drug market and a 4.96% stake purchase by Steve Cohen’s hedge fund, SAC Capital, pushed Imclone up early Tuesday. Shares have returned down to $38.41 in mid-day trading. The 52 week range is $27.50 to $47.94

Neurobiological Technologies Inc. (NASDAQ: NTII) Received a $2.1 million quarterly royalty payment for sales of Memantine, a moderate-to-severe Alzheimer’s disease treatment, from Merz Pharmaceuticals GmbH. Shares have showed little reaction, trading at $2.67. The 52 week range is $2.06 to $19.53.

Oxigene Inc. (NASDAQ: OXGN) Secures $40 million committed equity financing facility. Shares are down over 3% and trading in at $2.05 with a 52 week range of $2.01 to $5.12.

Onyx Pharmaceuticals (NASDAQ: ONXX). Shares are down by $3.47 to $29.62, a 10% drop after being murdered yesterday due to a Phase III testing halt for its lung cancer drug Nexavar. Shares fell almost 25% yesterday. The 52 week range is $23.65 to $61.18.

Today, Pfizer (NYSE: PFE) announced offer to buy all issued and outstanding shares of Encysive Pharmaceuticals (NASDAQ: ENCY) for $2.35 per share, a transaction valued at $195 million in equity. Pfizer will acquire the rights to THELIN, a treatment for PAH currently in pre-Phase III clinical testing in the United States. Pfizer is up almost $0.10 to $22.45 in mid-day trading. The range is $21.56 to $27.73. Encysive is up 110% to $2.27. The 52 week range is $0.59 to $5.02.

Psivida Ltd.  (NASDAQ: PSDV)  Received first R&D payments from Pfizer of $500,000 in part of an over $160 million agreement. Shares are down over 2% at $0.78. The 52 week range is $0.39 to $2.99.

Sirtris Pharmaceuticals, Inc. (NASDAQ: SIRT). Co-founder to present first In-Vivo, pre-clinical data showing SIRT1 activation has the ability to suppress tumor formation in cancer of the intestine and colon. Shares are down trading at $11.59 with a 52 week range of $9.81 to $21.99.

Rachel Lopez
February 20, 2008