Rumors, News and Biotech Buzz Present Various Trade Opportunities
LOS ANGELES, CA -- (Marketwire) -- 01/18/13 -- A significant bunch
of biotech deals were being discussed and closed at the recent
biotech conferences in San Francisco.
Investors of all sizes were wagging their tongues about a number of
upcoming developments and new opportunities in the market (bullish)
following a busy week of presentations and simultaneous financial
gatherings in the city by the bay. It looks to us like 2013 may be
marked as a year of heavy biotech IPOs.
One particular privately held firm that may be looking to go public,
caught our attention with their proposed once-a-week injectable basal
insulin that is currently in preclinical development. AntriaBio's
product looked highly intriguing as the formulation has been designed
to release insulin slowly and uniformly over a period of seven days
without an adverse initial burst of insulin. The subcutaneous
injection would target a huge market of patients with type 1 and type
2 diabetes for the control of hyperglycemia. No official word yet on
whether the firm is going to become publicly traded, but retail
biotech investors seemed intrigued by the innovation which stemmed
from nearby Menlo Park. Driving some of the excitement was the fact
that the product has a history of development and venture capital
with support from a top-notch management team behind it.
On the public side, we heard several rumors involving some of the
stocks we've covered in this space, starting with two Israeli firms
-- Pluristem Therapeutics Inc. (NASDAQ: PSTI) and Medgenics, Inc. We
remain very bullish on both firms given important upcoming catalysts
that some retail investors appear to have lost track of.
In addition to an almost certain Orphan Drug Designation that could
be announced at any moment, Pluristem is also due to receive a very
large multi-million dollar milestone payment tied to their progress
of the development of PLX cells for the treatment of Pulmonary
Hypertension from United Therapeutics.
Interestingly, there was also loud chatter about possible courtship
activity involving Pluristem and a big pharma. Some mentioned both
United Therapeutics (again) and Lonza as possible deal partners.
Either would provide skeptics with further validation of Pluristem's
various platforms which address several growing markets.
It's no secret that Lonza ($3.14B market cap) provides emerging and
established innovators of novel therapeutics with expertise and
advanced technologies while United Therapeutics ($2.65B market cap)
already knows the firm, having signed an agreement with them in June
of 2011. Under the terms of that agreement, United Therapeutics made
an upfront payment of $7 million and Pluristem is eligible to receive
regulatory milestone payments and other payments accumulating
together with the upfront payment to a total of approximately $55
million and reimbursement of costs of its development and clinical
activities. There are clearly a growing number of misguided shorts in
the stock which run the risk of being intemperately squeezed at any
moment. We would advise accumulating at these price levels given the
discounted prices, very healthy cash position and multiple
possibilities for strong catalyst reactions.
Speaking of catalysts, our favorite low-float biotech Medgenics is
also rumored to be on the verge of announcing some important
milestone developments in their quest to help solve the world-wide
hepatitis epidemic. We are watching their progress on multiple fronts
closely, as the stock tends to move up quickly on positive news.
Medgenics' sustained production and delivery of interferon-alpha for
the treatment of hepatitis using their INFRADURE(TM) technology has
been drawing attention from experts in the field.
As we see across the biotech landscape, a number of competitors are
scrambling and failing to fill the need for PEG-interferon and
ribavirin therapy, the current standard known all too painfully to
patients of the hepatitis virus. The race is on for an effective
treatment that can improve patient compliance and reduce side
A bet on Medgenics' own "miniature bio pump," which is impacted into
the patient and continuously produces and releases the desired
protein into the body, could pay off big -- especially when one
considers that the technology has multiple applications in several
billion dollar markets.
One stock we get a lot of e-mail about is the penny-priced, Phase III
drug developer CEL-SCI Corp. (NYSE MKT: CVM). In December, they
raised another round of gross proceeds, this time a total of
approximately $10.5 million through a registered offering to
We've been seeing an increasing number of big block trades in that
stock. It's logical to assume that some of those investors are
expecting positive announcements involving further expansion of the
firm's Phase III study of their immunotherapeutic agent Multikine(R)
(Leukocyte Interleukin Injection), which is being developed as a
potential first-line treatment for advanced primary head and neck
cancer. Each time they have raised money, the firm has successfully
and steadily been increasing the number of patients and clinical
study sites with an eye on accelerating the approval process.
Still, other investors who know the company and follow the company
may be taking positions as the already overly-aggressive flu season
kicks off. We all know that this is a stock that tends to peak in the
winter months because of the firm's activities in that space.
In a recent shareholder letter, CEO Geert Kersten stated that
CEl-SCI's L.E.A.P.S. collaborative study with the National Institutes
for Allergy and Infectious Diseases (NIAID) on pandemic flu was
progressing well. "The testing conducted by NIAID with our L.E.A.P.S.
compounds has shown significant promise in animal models of the
disease and has been submitted for publication," said Kersten. "We
believe that the data will potentially be very relevant when the next
strain of drug resistant flu makes an appearance."
Finally, while it continues to trade sideways, we are seeing
increased volume and attention being paid to Lpath, Inc. (NASDAQ:
LPTN). That firm continues late-stage clinical testing and
development of their product candidates iSONEP(TM) and ASONEP(TM)
which target bioactive signaling lipids in order to treat diseases
like Wet AMD, cancer, inflammation, fibrosis and a host of other
indications. The stock appears to be getting close to eating through
all of the over-hang left from the December 13th share offering which
provided just under $12 million to the company.
We are paying particularly close attention to iSONEP(TM) which is
being developed via a partnership with Pfizer (announced in December
of 2010). That potential treatment for Wet AMD targets nearly 2
million patients in the U.S. alone and a positive outcome of that
clinical trial could be enough to get Lpath taken out via a long
rumored buy-out. We love the shares at these prices and the fact that
the firm is now on a major exchange.
The full report including charts and technical analysis is available
Healthcare investors and Biotech traders interested in accessing
BioMedReports' new complete database of clinical trials and upcoming
FDA and world-wide regulatory decisions which can be used to make
more profitable trades and see upcoming catalysts can go to:
News developments and live healthcare sector updates are available
constantly via Twitter at: http://twitter.com/BioMedReports
BioMedReports is a news and research portal
covering financial biotech news for the entire Healthcare Sector of
the market. BioMedReports is not paid or compensated to report the
news and developments of publicly traded companies. BioMedReports
sells a premium product for subscribers and full disclosures and
information about the stocks and news mentioned in this news release
are available at BioMedReports.Com
Media Contacts Only:
Press spacebar to pause and continue. Press esc to stop.