Orexigen (OREX) is getting interesting again. The obesity drug developer – perhaps Goldilocks’ perfect bowl after two previous attempts (ARNA, VVUS) – iterated this week that the Light Study should have interim results in early December, with a New Drug Application to follow before year end. Last December, we suggested that OREX was the obesity stock to own in 2013, and for those who haven’t had the name in their portfolios (up 33% YTD) the stock is getting attractive in front of a key catalyst. Here’s the story.
In a note sent out to PropThink’s Premium Subscribers before the market open on August 26, we made the case that Progenics (PGNX) represented a compelling long, particularly in relation to its PSMA- (Prostate-Specific Membrane Antigen) targeting oncology program, its most attractive pipeline assets. At the time of its release to subscribers, PGNX traded at $4.82/share. Although the healthcare sector sold off significantly as investors took money off the table with developing events in Syria, PGNX hit a high of $5.96/share over the course of the next three days. The stock ended the week at $5.56, up 15% in 5 days
Last week we mentioned Biolife Solutions (BLFS) and the stock’s performance since PropThink initiated coverage four months ago – up over 100%. This week, we updated our coverage, noting that the company may have some surprise events in the second half of this year, including up-listing to a major exchange and a possible “beat and raise” on guidance.
Amarin (AMRN) has been climbing steadily higher since its lows around $5.13. We noted the potential for a run-up following the unexpected announcement in June that Vascepa would go before a FDA advisory panel for the “Anchor” indication later in the year. Since then, we’ve been keeping PropThink Premium members up to date, suggesting accumulation in the $5.15 to $5.60 range with strong support and gains likely in the third and fourth quarters as the October advisory panel approaches. An entrance around $5.50 has been good for 15% thus far. The pivotal event is still two months out and the stock continues to break through incremental resistance.
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We’re pleased to share that we’ll be hosting an interview and investor Q&A conference call with David Rosa, Chief Executive Officer at Sunshine Heart (SSH), on Tuesday, September 3rd at 3:00 PM EDT. Shares of Sunshine Heart have appreciated significantly in the past four months, up over 100% since the company’s mid-April capital raise. Sunshine Heart’s developmental C-Pulse Heart Assist device offers a novel approach to the treatment of late-stage congestive heart failure, and an early feasibility study completed in 2011 demonstrated that the device provided a strong benefit in a historically difficult-to-treat patient population. Heart failure patients in the early study have seen the severity of their disease improve drastically with time on the device, so much so in fact, that C-Pulse is arguably reversing the latter stages of congestive heart failure – two of 20 patients have already been weaned from the product, and Sunshine Heart is evaluating more patients for complete removal of the implanted heart assist system.
This exclusive call will be open to all investors who complete a free registration on PropThink.com – for those already receiving our Newsletter, simply watch for an email on Monday. More details and instructions are available at PropThink.com/SunshineHeartCall or by clicking here.
We also spent some time this week researching a recently public cancer immunotherapy developer, Heat Biologics (HTBX). Compared to some other freshly public biotech peers, Heat had an unassuming IPO in July; it’s stock has largely tracked its $10 opening price in the last month. Despite our lingering skepticism about cancer vaccines, there are some compelling facets to Heat Bio that make it an interesting asset to own through mid-2014. PropThink Premium subscribers saw the full article, which highlighted some undiscussed nuances to HTBX’s next nine months – see it, and more, free for 30-days by clicking here.
