PropThink’s Recap of this Week in Biotech

  • On Monday, we wrote that MethylGene, a relative unknown in the industry, is poised to climb after a recent financing. While the stock remains flat at the end of the week, increased visibility from the Street should buoy share price.
  • DARA Biosciences filed an application with the FDA this week, requesting orphan drug status for KRN5500. While an afterthought in Jason Napodano’s original investment thesis, the drug could offer multifold returns for patient investors.
  • Good news on the marketing front moved TSPT up 14% this week (with fat pockets to back up share price), while GILD bounced back from investors’ mixed reaction to clinical trial data on Tuesday.
  • Acadia thumbed its nose at the pimavanserin naysayers, with significant results from a pivotal Phase 3 trial. It was a veritable home run for the company – and those holding the stock.
  • TEVA released 2013 guidance on Friday that sets a much lower bar for earnings, but may set the company up for an earnings beat in the future. We expect shares to trade up ahead of the December Investor Day.
  • BCRX gapped up on Friday morning, but as we expected, gave up almost all of its gains by the close.
  • Investors should keep their powder dry in anticipation of a possible financing from ANTH, which released additional data for blisibimod this week. With a firmer balance sheet, ANTH may be ripe for an entrance.
  • Traders have found a good run-up candidate in PATH, which has already begun to move in front of its January FDA action date, gaining 5% since we notified our readers this week.
  • Sure enough, AMRN rallied on relief that the company delayed hiring a Vascepa sales force for another month. The company is still holding out – wisely – for a NCE decision.
  • SCLN has always been cheap to own. The stock trades at a discount to its domestic peers, and after a recent sell-off, a large Chinese equity fund has taken a significant position, prompting us to look into the stock. Here’s why we like it.

Below are a few of of our high-conviction picks released in November, and how they’ve performed since we took a stance. Make sure to check out the research, as many of these are long-term analyses, regardless of their initial performance.

  • Our November 1st report on Illumina, Inc. has returned 13% since, and Mr. Deryugin says its best days are yet to come.
  • ENDP remains flat at the end of the month, but read our November 2nd feature for a detailed analysis of why shares of this pharma company won’t stay down for long.
  • Investors, ourselves included, are very interested in the full Abraxane data due in January. Since we released intelligence on Celgene in November, the stock is up 7%, just the beginning should Abraxane demonstrate quality top-line results and receive approval for pancreatic cancer.
  • BIIB performed similarly since PropThink’s research at the end of October, gaining 8% this month.BG-12’s PDUFA delay offered a nice entrance point, and we remain bullish on the biotech giant.
  • For investors with an appetite for risk, BLFS is on the ramp to generating positive cash flow. PropThink released this report on the 26th, and although share price remains flat, there’s considerable upside potential.
  • Anacor will release data from two Phase III studies in the next several months, and since our November 19th report, the stock climbed 15%. We continue to expect more from ANAC in the near term.

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