Tuesday, July 15, 2014

Question from Nestor E.

Which emerging bio tech  best for future trade?

Nestor E

Hi Nestor,

Yellen's comments didn't do the biotech industry any favors today but it does provide some buying opportunities.   I don't give investment advice but I have purchased a ton of Array (ARRY) and Merrimack (MACK).  They both have solid pipelines and Array has an exceptional list of partners.  They both also have over $100 million in cash to work with.  One high risk but possible high reward opportunity is Oncogenex (OGXI).  They will announce phase 2 results of their compound in bladder cancer this quarter.  If successful, the stock will move as the compound is being testing in a wide variety of cancers with readouts over the next few years.

Thanks for the question Nestor and good luck investing!

Monday, July 14, 2014

Adam Feuerstein responds to my question regarding Mannkind's Alfrezza label

He provides a detailed response to my question on today's article.

I continue to be neutral on Mannkind between their lack of partnership, label, and financial weakness. 

Wednesday, May 28, 2014

Daily Dose - Vivus , Array Biopharma

Vivus (VVUS) may receive an offer from Aspen Investments to purchase the company for $640 million.  Aspen filed with the SEC that it currently holds a 9.65% stake in the company and may make an offer as soon as June 13th for the biotech company.  That would be a premium of approximately 35% from yesterday's close but less than half the one year highs.  Vivus has two approved drugs - Stendra for erectile dysfunction and Qsymia for weight loss.  Vivus licensed Stendra in the US and worldwide but has been unable to secure a partner for Qsymia in the United States which has led to extremely disappointing sales results since the drug was launched over a year ago.  Aspen Investments just incorporated a few months ago so I'm not sure how credible the offer is and if it will lead to additional bids.  I currently own 6,000 shares and I'm long based on hopes that Vivus would secure a marketing partner for Qsymia or be purchased by a big pharma company so maybe these hopes will turn into reality now that there's some interested in the company. 

Array locked up yet another quality partnership.  They are partnering with Biogen on inhibitor discovery and development to target autoimmune diseases.  Array will receive funding for three years, potential milestone payments based on achieving certain development and commercial milestones, and royalties on future sales of approved products.  Array already has a strong list of partnerships including compounds in phase 3 trials with both AstraZeneca and Novartis.  The company carries a market cap of only $543 million and a deep pipeline which is why I have a position of 20,000 shares in the company.