PropThink’s Weekly Healthcare Recap

  • A catalyst-rich 2013 and a solid financial position for BioMarin should push the stock higher. Since we published this story on Monday, shares of the drug developer are up 9%.
  • Dendreon’s rally in the new year is largely a product of the JP Morgan Healthcare conference next week and a number of bullish Seeking Alpha articles, both of which galvanized the high-volatility stock. With 4Q results due in the next two months, DNDN’s presentation at the conference isn’t likely to be particularly telling, however.
  • Endo Pharmaceuticals has been on a bearish trend in the second half of this year. It looks like management has finally reset the earnings bar, and we’re looking for gains from this discounted specialty pharma stock in the long-term. Read more in our original report.
  • RPTP has climbed 14% since PropThink covered the company last week. With a PDUFA for Procysbi in April, shares have already begun climbing, and Mr. Deryugin expects Raptor Pharmaceuticals to perform well in the long-run based on its orphan drug strategy.
  • The failure of its ALS treatment dexpramipexole caused shares of Biogen Idec to fall off in the middle of the week. Subsequent weakness presents a buying opportunity ahead of multiple sclerosis treatment BG-12’s FDA approval date in March.
  • Phase III Zerenex data is due from KERX any day – overdue in fact – and PropThink put together an options strategy that we think best fits the volatility that will accompany this binary event. Here’s a preview of the data from October.
  • ABBV, Abbot Lab’s biotech spinoff, began trading on the NYSE this week. Given the past success of these breakaway companies, it’s likely that ABBV will climb in 2013. Nevertheless, the stock closed the week flat after some initial gains.
  • Synageva initiated its third stock offering in twelve months this week, bringing its capital raised in that time frame to nearly $300M. But with a market cap of $1.25B, the stock has outpaced itself. It’s single clinical candidate is still in Phase II studies, and the company has little to drive share price in the near-term. Without a repricing or further technology validation, upside in GEVA is limited. By the end of the Friday trading session, GEVA had retraced all of its earlier gains.

Next week, much of PropThink’s editorial team will be spending time at the JP Morgan Healthcare Conference and satellite conferences in San Francisco. We look forward to a few days of research, diligence and idea generation, all of which we’ll be bringing home to put to work on