A Promising Israeli Biotech

Little-known Protalix BioTherapeutics (PLX) has surprised the Street. The stock has hit 11.33 on NYSE Euronext, up from 4 in June.

The Israeli company's lead drug, prGCD—a treatment for Gaucher's disease, a genetic disorder that causes blood problems and enlargement of the liver and spleen—showed favorable results in phase III clinical trials. It also met efficacy and safety targets, says Brian Abrahams of Oppenheimer (OPY) (it has done banking for Protalix), who rates it outperform. He figures a large U.S. drugmaker may partner with Protalix or offer to buy it. If prGCD gets FDA approval, the drug will compete with Genzyme's (GENZ) big-selling Cerezyme, which is in short supply, says Abrahams. The clincher for Protalix, notes Raghuram Selvaraju of Hapoalim Securities, is its low-cost, plant-cell- based method of producing enzymes. He rates Protalix a buy.