PropThink’s Healthcare Wrap-Up for the Christmas Week

  • Following the Phase III failure of Oncothyreon’s lead candidate Stimuvax, we see some value remaining in the oncology developer. The company has a few options on the table, discussed in our report, but it remains to be seen in which direction the company will take its development program.
  • Medivation took a hit this week after losing an important patent dispute, which may result in pressure on its prostate cancer drug Xtandi. The patent covers a similar candidate developed by UCLA and Aragon Pharmaceuticals, and most analysts had expected the company to win the dispute, thus the sell-off.
  • As of Friday’s close, investors are still waiting for news from Keryx Pharmaceuticals concerning the company’s Phase III trials for Zerenex. Our previous report highlighted the drug’s potential, and explains what certain results could mean for KERX.
  • We wrote on ViroPharma this week, which despite recent downside, is positioned well to continue the growth of  Cinryze, particularly if it successfully develops an improved administration method. In addition, the company’s pipeline will be a long-term boon for investors.
  • Raptor Pharmaceuticals has taken on the dual – and lucrative – role of tackling orphan drugs and improved drug reformulations. RPTP is set to climb in early 2013, as the company’s lead candidate Procysbi will receive an FDA approval decision by late April and stands to benefit from an underserved patient population.
  • AVEO, despite a brief run early this week, remains in the doghouse since it’s lead candidate tivozanib displayed mixed results in a Phase III trial earlier this year. The stock has been under pressure since, off 50% in the last twelve months, but we see the decline as an opportunity with a favorable risk/reward.
  • Since we last wrote about Amarin in early December, the shares have continued to decline as investors lose interest and dump the once-loved stock. AMRN is, in fact, approaching it’s previous 52-week lows and needs more than ever to announce some good news.