Biodel Rises Most Ever on Optimism of Deal Related to Experimental Insulin
Biodel Inc. rose the most since it began selling public shares in May 2007 on an analyst’s note expressing optimism about the company’s insulin product.
Biodel gained 54 cents, or 28 percent, to $2.50 at 4 p.m. New York time in Nasdaq Stock Market composite trading for the biggest one-day gain since the company’s initial public offering more than 3 1/2 years ago.
Prospects for a partnership for the fast-acting insulin, known as Linjeta, or an acquisition may have driven up the Danbury, Connecticut-based company’s shares, Liana Moussatos, an analyst at Wedbush Securities in San Francisco, said today in a note to investors. Biodel made a presentation today to investors at the J.P. Morgan Healthcare Conference in San Francisco.
“We believe value-oriented investors may be interested in Biodel’s approximately $60 million market capitalization contrasted to the blockbuster revenue potential” of Linjeta, Moussatos wrote in the note.
In November, Biodel lost almost half its value after U.S. regulators declined to approve the company’s product without new clinical studies. The agency asked for two clinical trials in patients with Type 1 and Type 2 diabetes to prove that Linjeta, works and is safe.
Erik Steiner, the company’s vice president for operations, declined to comment in an e-mail on the shares gain.
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