As the markets are continuing to heat up a few biotech and pharma companies made massive gains on Thursday. There is a very positive sentiment in the health care sector considering the new Trump administration that will be taking over later this month. Many investors have even rotated their portfolios into this sector, looking for a greater return.
Although the sector as a whole has been trading sideways this Thursday, there were a few breakouts that smashed expectations and made massive gains.
These companies 24/7 Wall St. has picked stood out from the rest on Tuesday morning. We have included information about each company, as well as recent trading activity and the consensus price target.
Most of these moves are influenced by clinical trials or U.S. Food and Drug Administration (FDA) decisions. And as we have said before, these have the potential to make or break companies in the health care sector. 24/7 Wall St. also has put together an FDA calendar for some key decisions and catalysts coming out in January and February.
Shares of EnteroMedics Inc. (NASDAQ: ETRM) practically doubled after the company announced that its vBloc Neurometabolic Therapy has now been implanted at two additional vBloc Institutes: MedStar Health in Maryland and Roper St. Francis in South Carolina. These are the 12th and 13th vBloc Institutes, respectively, in the United States.
vBloc Therapy works to control sensations of hunger using a pacemaker-like device that is implanted under the skin during a safe, minimally invasive procedure that does not alter or remove any patient anatomy. This device can be adjusted to optimize patients’ therapy needs.
Shares of EnteroMedics were last seen up more than 100% at $4.21, with a new 52-week trading range of $0.04 to $4.98.
Halozyme Therapeutics Inc. (NASDAQ: HALO) shares saw a handy gain on Thursday after the company reported top-line results from the combined analysis of Stages 1 and 2 and Stage 2 alone of its HALO 202 study. The lead investigational drug is PEGPH20 in combination with Abraxane (nab-paclitaxel) and gemcitabine for the treatment of stage IV pancreas cancer patients.
The overall study population showed a statistically significant increase in progression-free survival (PFS) in patients with high levels of hyaluronan (HA-High) treated with PEGPH20 plus Abraxane and gemcitabine when compared to HA-High patients receiving Abraxane and gemcitabine alone. Stage 2 of the study, which completed enrollment in February 2016, showed a 91% improvement in median PFS for HA-High patients in the PEGPH20 arm and achieved its primary endpoint.
Halozyme shares were trading up about 12.5% at $12.03 Thursday morning, with a consensus price target of $14.22 and a 52-week range of $6.96 to $15.44.
Alexion Pharmaceuticals Inc. (NASDAQ: ALXN) has filed a 10-Q form with the U.S. Securities and Exchange Commission (SEC) in regards to an internal investigation within the company and its Audit and Finance Committee. This investigation stemmed from allegations from a former employee concerning company sales practices of the drug Soliris, used in the treatment of paroxysmal nocturnal hemoglobinuria and atypical hemolytic uremic syndrome.
The Audit and Finance Committee concluded, based on the facts of the investigation, that Alexion’s previously issued financial results do not require restatement. In addition, no instances of improper revenue recognition associated with pull-in sales were identified, all Soliris orders were valid and placed by customers for patients in order to fulfill an actual need, and there were no instances where Soliris was sold to build stock of unwanted product.
Shares of Alexion traded up 8.3% to $137.73. The consensus price target is $168.69, and a 52-week range is $109.12 to $181.13.
Shares of Genocea Biosciences Inc. (NASDAQ: GNCA) made a solid gain on Thursday after the company announced positive clinical results from a planned interim analysis of its ongoing placebo-controlled Phase 2b trial evaluating GEN-003 for the treatment of genital herpes infections. Even in a trial this small, at six months after dosing, GEN-003 demonstrated statistically significant improvements versus placebo across multiple clinical endpoints.
Shares of Genocea were last seen up 9.2% at $4.96, within a 52-week range of $2.56 to $8.07. The consensus price target is $17.20.
Otonomy Inc. (NASDAQ: OTIC) announced positive results from its pivotal Phase 3 clinical trial of Otiprio (ciprofloxacin otic suspension) in patients with acute otitis externa, also known as swimmer’s ear.
This single administration trial of Otiprio met the primary endpoint by showing a statistically significant increase in clinical cure rate compared to sham (no treatment) at Day 8. Treatment with Otiprio was also well tolerated. Based on these positive results, Otonomy expects to submit a supplemental New Drug Application (sNDA) with the FDA in the first half of 2017.
Otonomy shares were up 11.1% at $18.00 on Thursday. The 52-week range is $10.50 to $21.46, and the consensus price target is $33.43.
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