The Day In Biotech Stocks (January 15, 2008) (DNA, DNDN, GENZ, TTHI, LCBM, CEGE, GPCB, CGEN)

247wallst — Tue, 15 Jan 2008 19:07:37 +0000

Today was a brutal day for risk stocks, and biotechs are often thought of as risky to stocks as Russian Roulette is to your head. But Biotechs are also a source of safety IF they are winners, and you could in theory have a market down 30% and see a small biotech run up exponentially if it has a major development in a drug candidate. In short, there’s always action in this sector. It survives democrats and republicans, bull markets and bear markets, and growth versus defense (and vise versa).

Unfortunately, Genetech fell 1.44% to $69.62 after it beat earnings Monday and reiterated its 2008 guidance. Unfortunately it also missed sales estimates on ALL of its top four drugs.

Dendreon (NASDAQ: DNDN) was a safety net, as we noted that the E.U. may come to its aid. It was granted a method patent for its PROVENGE for prostate cancer (and another patent). That is after a large gain yesterday too. DNDN rose 4.2% to $6.73.

Genzyme (NASDAQ: GENZ) saw S&P actually Raise its corporate debtrating based on its solid operating performance, varied portfolio, and its strong pipeline. S&P’s raised the rating to ‘BBB+’ from ‘BBB,’ and this is that much stronger in a "investment grade rating" for corporations. GENZ fell 0.2% in regular trading and rose 0.2% to $78.68 after the news.

Transition Therapeutics Inc. (NASDAQ: TTHI) rose 10% to $12.10 on a whopping 49,582 shares, yet not official news was out. We don’t even have any options data on it.

Lifecore Bio (NASDAQ: LCBM) rose a whopping 30% today to $16.76 because Warburg Pincus is acquiring the stock for $17.00 per share. It traded some 3.4 million shares.

Cell Genesys (NASDAQ:CEGE) rose some 6% to $2.24 after it filed its financial report (on Edgar), but this is one day after its press release of "Interim Analysis Supports Continuation of Cell Genesys’ VITAL-1 Phase 3 Clinical Trial of GVAX Immunotherapy for Prostate Cancer" that was out yesterday.

GPC Biotech AG (NASDAQ: GPCB) fell by 16.9% down to $2.99, although we didn’t see any direct news on this biotech implosion. Its trading range is (was) $3.25 to $37.79, ouch.

Compugen (NASDAQ: CGEN) rose $0.32 or almost 16% to $2.33, and it was up even further than that in after-hours trading. The company didn’t have any news today of its own but yesterday morning it did announce a GPCR Ligand Discovery and License Option Agreement With Merck that had it up big yesterday.

Jon C. Ogg
January 15, 2008

Pre-Market Stock Movers (January 15, 2008) (EDU, COIN, CWTR, DNDN, DNA, WSM, FRX, LCBM, NWY, STT, PVH, TMA)

247wallst — Tue, 15 Jan 2008 08:50:55 +0000

Below is a snapshot of the key pre-market news that we are focusing on for early pre-market trading this Tuesday:

Apple (AAPL) has its Macworld today.
CECO Environmental (CECE) announced 14 new orders received totaling ~ $7.3 million.
Charles & Colvard (CTHR) lowered guidance and announced a strategic review.
Citigroup (C) was trading up but then went negative in early trading: -$1.99 EPS vs -$1.00 estimate, huge charges of $18.1 Billion, 4,200 layoffs included, review divestitures, cut $0.54 dividend down to $0.32.
Coldwater Creek (CWTR) lowered guidance, again, again. Shares down 15% to new low.
Converted Organics (COIN) announced its has secured a Rhode Island site for second organic fertilizer facility; stock down 6% pre-market.
Dendreon (DNDN) received a European patent covering Provenge and its ACI platform technology; shares up 5% pre-market after solid gains yesterday.
First American Financial (FAF) sees revenues of $1.9 Billion as expected but sees charges and writedowns.
Forest Labs (FRX) $0.96 EPS vs $0.75 estimate; Revenues $998.2 million versus $946+ million estimate. Raised 2008 guidance.
Genentech (DNA) trading down 2% pre-market after beating earnings but missing estimates on its top 4 drugs; sees 2008 EPS $3.30-3.45 vs. $3.37 estimate.
Kellwood (KWD) $21.00 tender from Sun Capital affiliate Cardinal Integrated commences.
Kosan (KOSN) initiated Phase II trials of alvespimycin, their second-generation inhibitor in patients with HER2-positive metastatic breast cancer.
Lifecore Biomedical (LCBM) trading up 29% after it agreed to be acquired by Warburg Pincus for $17.00 per share in cash.
Merrill Lynch (MER) confirmed that it has agreed to issue $6.6 Billion in preferred stock.
New Oriental Education & Technology (EDU) $0.10 EPS vs. $0.08 estimate.
New York & Co. (NWY) lowered guidance.
OSI Systems (OSIS) received a follow-on order from EDO Corporation for roughly $5.8 million.
Phillips-Van Heusen (PVH) guidance for Q4 EPS at least $0.53, previous guidance was $0.51 to 0.53 and $0.53 First Call; also reaffirmed FY08 EPS of $3.55 to 3.65 vs. $3.55 estimate.
State Street (STT) issued earnings and is indicated down 1% to 3% on thin volume after noting it sees 2008 at lower end of target.
Thornburg Mortgage (TMA) raised roughly $212 million in equity and convertible preferred securities sales; stock down 1% pre-market.
William Sonoma (WSM) lowered guidance; stock down 14% pre-market.

Jon C. Ogg
January 15, 2008

24/7 Wall St. » LCBM

The Day In Biotech Stocks (January 15, 2008) (DNA, DNDN, GENZ, TTHI, LCBM, CEGE, GPCB, CGEN)

Pre-Market Stock Movers (January 15, 2008) (EDU, COIN, CWTR, DNDN, DNA, WSM, FRX, LCBM, NWY, STT, PVH, TMA)