Invitrogen Drops As Earnings Fall, Citigroup Cuts Stock
Shares of Invitrogen (IVGN) are down more than 12% as the company missed third quarter earnings and revenue estimates.
The company released its earnings report after markets closed on Thursday. It realized a loss of $130 million compared to a gain of $24 million for third quarter of 2005.
The company explained that earnings were impacted by a goodwill charge of $150 million during the quarter.
Management admits it had failed to continue the company’s double digit growth rate that was seen over the last few years, and has promised to refocus the business strategy to maximize earnings and sales.
Citigroup however cut the stock to hold due to lack of information and clarity regarding just how the company intends to restrategize its business.
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Vertex Jumps On Hepatitis C Trials
Shares of Vertex Pharmaceuticals (VRTX) skyrocketed by more than 20% in pre-market action on Friday as the company announced positive results from its Hepatitis C drug trials.
24 out of the 26 patients who have recieved a combination therapy of interferon with Vertex’s Hep C investigational protease inhibitor, telaprevir, did not show any evidence of viral RNA. Some patients were viral RNA free even after stopping therapy.
The details of the phase 1b study will be presented on Monday at the 57th Annual Meeting of the American Association for the Study of Liver Diseases (AASLD).
Shares of Vertex are currently trading at $43.28 before the morning bell.
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Thursday’s Top Biotech and Medical Stocks
Biotechnology
CELGENE CP [CELG] +12.46%
ADVENTRX PHARMACTL [ANX] +8.83%
NANOGEN INC [NGEN] +7.33%
NPS PHARM INC [NPSP] +7.22%
IOMAI CORPORATION [IOMI] +7.19%
Diagnostic Substances
TRINITY BIO ADR [TRIB] +10.91%
IMMUCOR INC [BLUD] +5.62%
QUIDEL CP [QDEL] +5.53%
GENE LOGIC INC [GLGC] +4.94%
AKORN INC [AKN] +3.56%
Drug Delivery
COLUMBIA LABS INC [CBRX] +5.40%
GENEREX BIOTECH CORP [GNBT] +4.06%
PETMED EXPRESS INC [PETS] +3.92%
QUIGLEY CORP THE [QGLY] +3.69%
SKYEPHARMA PLC [SKYE] +3.26%
Drug Manufacturers
SEPRACOR INC [SEPR] +7.86%
PHARMAXIS LTD ADR [PXSL] +7.72%
MILLENNIUM PHARM [MLNM] +6.98%
COLLAGENEX PHARM I [CGPI] +6.96%
POZEN INC [POZN] +6.56%
Medical Appliances & Equipment
SIGNALIFE INC [SGN] +13.91%
PALOMAR MED TECH [PMTI] +13.82%
VARIAN MED SYS INC [VAR] +12.90%
QMED INC [QMED] +12.17%
CHOLESTECH CORP [CTEC] +11.27%
Medical Instruments & Supplies
CPC OF AMERICA INC [CPCF.OB] +7.32%
NEPHROS INC. [NEP] +7.32% $
FOXHOLLOW TECH INC [FOXH] +6.56%
CYTYC CP [CYTC] +6.00%
BIOLASE TECH INCS3 [BLTI] +4.52%
Medical Laboratories & Research
SPHERIX INC [SPEX] +33.77%
MEDASORB TECHNOLOGS [MSBT.OB] +4.17%
NEOGENOMICS INC [NGNM.OB] +3.45%
PREMD INC [PME] +3.23%
AASTROM BIOSCIENCE [ASTM] +2.94%
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Cytyc Buys Endometriosis Device, Q3 Results Positive
Cytyc Corp (CYTC) announced late Wednesday that it had acquired certain assets from privately held Scottish company Helica, including a second generation thermal ablation device.
The Helica Thermal Coagulator, as the device is called, is used by obstetricians and gynecologists for treating endometriosis. It is estimated that over 16 million women suffer from the condition world wide.
Cytyc will pay Helica $1 million up front, and a two year earnout based on sales. Cytyc said it will pay a maximum of $9 million during that period. The second generation device will be launched in 2008.
Early Wednesday Cytyc released its third quarter results with revenue increasing 18% to $154.3 million, while diluted earnings per share also gaining 18% to $0.31 per share. That also included a tax benefit of $0.02 per share.
Domestic surgical product revenue increased by 33%, while international revenue increased by 34%.
Shares of Cytyc closed on Wednesday at $24.50, near its 52 week low of $22.79. The year high was $30.77 back in February of 2006.
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Wednesday’s Top Biotech and Medical Stocks
Biotechnology
BIO-MATRIX SCIENTIFI [BMSN.OB] +21.62%
ADVENTRX PHARMACTL [ANX] +12.30%
FAVRILLE, INC. [FVRL] +9.51%
IDM PHARMA INC [IDMI] +7.69%
CARDIOVASCULAR BIOTH [CVBT.OB] +7.32%
Diagnostic Substances
SYNOVICS PHARMACEUTL [SYVC.OB] +25.00%
SYNOVA HEALTHCARE GR [SNVH.OB] +6.67%
PALATIN TECH INC [PTN] +5.63%
REMOTEMDX INC [RMDX.OB] +4.21%
CYTOGEN CORP [CYTO] +3.05%
Drug Delivery
GENEREX BIOTECH CORP [GNBT] +6.49%
COLUMBIA LABS INC [CBRX] +5.14%
NEKTAR THERAPEUTIC [NKTR] +4.00%
BIOVAIL CORP [BVF] +2.47%
ALKERMES INC [ALKS] +1.68%
Drug Manufacturers
JAVELIN PHARMACEUTIC [JAV] +10.98%
ARENA PHARMACEUTIC [ARNA] +7.24%
PRANA BIO LTD ADS S1 [PRAN] +5.51%
TAPESTRY PHARMA INC [TPPH] +5.49%
MEDICINES CO (THE) [MDCO] +4.73%
Medical Appliances & Equipment
CANDELA CP [CLZR] +26.46%
CHOLESTECH CORP [CTEC] +11.60%
SRI/SURGICAL EXPRE [STRC] +7.87%
CHAD THERAPEUTICS [CTU] +4.76%
VOLCANO CORPORATION [VOLC] +4.35%
Medical Instruments & Supplies
NEUROMETRIX, INC. [NURO] +14.68%
UROPLASTY INC [UPI] +9.09%
TUTOGEN MEDICAL INC [TTG] +8.51%
IVAX DIAGNOSTICS INC [IVD] +7.19%
VASCULAR SOLUTIONS [VASC] +6.22%
Medical Laboratories & Research
MEDTOX SCIENTFIC INC [MTOX] +4.90%
BIO-REFERENCE LAB [BRLI] +2.53%
AASTROM BIOSCIENCE [ASTM] +2.26%
GENOMIC HEALTH, INC. [GHDX] +1.35%
ENZO BIOCHEM INC [ENZ] +1.19%
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Elan Q3 Results Disappointing
Irish biotech Elan Corp (ELN) released its third quarter results early wednesday. The numbers were less than stellar; net loss was almost double that of last year’s third quarter results, and sales dipped 4%.
Investors were hoping that the launch of the highly anticipated drug, Tysabri, which was launched in July of 2006 to treat Multiple Sclerosis, would add significantly to Elan’s bottom line.
Tysabri was launched earlier in 2005, but was recalled after serious brain infections were reported in patients. Two deaths were also reported.
Tysabri is co-developed with Biogen Idec (BIBB).
It seems investors are willing to give Elan and its drug Tysabri one more chance as shares of the company’s stock dipped only 1% in trading on the Irish Stock Exchange. North American trading will surely see a similar small drop.
Investors would like to wait for the year end results in three months.
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Watch Alert: Bovie Medical (BVX)
Shares of Bovie Medical Corp (BVX) closed on Tuesday at $8.95 a share, up more than 10%. Volume was 4x the daily average.
No news release or media exposure were detected.
Bovie Medical develops and markets medical and surgical products. The company especially develops and distributes electrical surgical products to plastic surgeons and dermatologists for removing skin leasions in the office.
Earnings are positive with low debt.
Bovie Medical has made BHI’s Watch List.
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Tuesday’s Top Biotech and Medical Stocks
Biotechnology
CARDIOVASCULAR BIOTH [CVBT.OB] +12.64%
NEOSE TECH INC [NTEC] +11.98%
CAMBREX CP [CBM] +7.09%
POINT THERAPEUTICS [POTP] +6.72%
VANDA PHARMACEUTICAL [VNDA] +5.47%
Diagnostic Substances
ADVANCE MAGNETIC [AMAG] +7.92%
TORREYPINES THERAPEU [TPTX] +6.39%
NYMOX PHARM CORP [NYMX] +5.79%
INTERLEUKIN GENETICS [ILI] +4.76%
VALERA PHARMACEUTICA [VLRX] +3.17%
Drug Delivery
MATRIXX INITIATVS [MTXX] +5.18%
NOVADEL PHARMA INC [NVD] +4.72%
BIOPROGRESS PLC [BPRG] +2.05%
FLAMEL TECH SA ADR [FLML] +2.03%
IOMED INC [IOX] +1.13%
Drug Manufacturers
UNITED THERAPEUTIC [UTHR] +9.05%
ALEXZA PHARMACEUTICA [ALXA] +8.55%
UNIGENE LABS INC [UGNE.OB] +7.95%
TAPESTRY PHARMA INC [TPPH] +7.69%
SIGA TECH INC [SIGA] +6.53%
Medical Appliances & Equipment
CAMBRIDGE HEART INC [CAMH.OB] +11.33%
SYNERGETICS USA INC [SURG] +5.62%
CHAD THERAPEUTICS [CTU] +5.00%
RESMED INC [RMD] +4.29%
LANGER INC [GAIT] +4.21%
Medical Instruments & Supplies
CARDIOTECH INTL [CTE] +35.37%
IMPLANT SCIENCES CP [IMX] +14.48%
BOVIE MEDICAL CORP [BVX] +10.77%
ISORAY INC [ISRY.OB] +10.26%
MINDRAY MEDICAL INTL [MR] +8.91%
Medical Laboratories & Research
MEDTOX SCIENTFIC INC [MTOX] +12.90%
PRIMEDEX HEALTH SYS [PMDX.OB] +2.27%
MEDASORB TECHNOLOGS [MSBT.OB] +2.22%
RADIOLOGIX INC [RGX] +1.97%
OSI PHARMACEUTIC [OSIP] +1.69%
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The Biomedical Industry In One Stock!
H&Q Life Sciences Investors (HQL) is not actually a stock, but trades like one. HQL is a close-ended fund managed by Hambrecht and Quist Capital Management LLC, and trades on the Amex just like a stock.
What really gets us excited about HQL is that it invests in both public and private companies, large and small. An investor of HQL does not only hold a broad diversified position in the biomedical industry, but also carries financial vehicles not commonly available to small investors. HQL invests in convertible securities and warrants in addition to common stocks. As of June 2006, about 19% of its assets were made up of non-common stocks.
HQL, initiated in 1992, is the younger sibling of H&Q Healthcare Investors (HQH), which began trading back in 1987. According to the company’s website HQH holds a broader position in the healthcare industry, while HQL focuses more on exciting new biotechnology startups, although we fail to differentiate between the two when looking at their holdings.
So why are we recommending HQL right now? The fund just recently completed a public 1 to 3 rights offering that netted more than $70 million in cash. HQL is excited to take advantage of what it believes is a great time to find bargains in the biotechnology and medical industry, and according to the prospectus for the filing it plans on investing in those bargains. The subscription price of the filing was $12.82 a share. Almost immediately, the Chief Executive Officer purchased more than $20,000 worth of stock at the same price.
While all biotech indices, including the NASDAQ Biotech Index (NBI), saw gains over the last few weeks, HQL has lost ground, dropping down near the rights offering price of $12.82. The price closed on Monday at $13.67 a share.
Another reason for investing in HQL is the dividend. Let us repeat that last sentence just in case you missed it; a biotech investment that pays dividend! The fund pays out 2% of assets in dividend on a quarterly basis. The last distribution paid out to investors was $0.29 a share.
If a sound, broad, and exclusive investment in the biotechnology and medical industry is hoped for, HQL is not only the safest bet, it is the only such investment. And at $13.67 a share, we have no hesitation in recommending it.
The following are some highlights of HQL’s holdings as of June 2006:
Common Stocks and Warrants
Biopharmaceuticals 26.3%
Drug Delivery 2.5%
Drug Discovery Technologies 5.3%
Emerging Biopharmaceuticals 17.8%
Generic Pharmaceuticals 4.3%
Healthcare Services 4.5%
Medical Devices and Diagnostics 15.2%
Largest Holdings (Common Stocks)
Gilead Sciences (GILD)
Conor Medsystems (CONR)
IDEXX Laboratories (IDXX)
Cubist Pharmaceuticals (CBST)
Theravance (THRX)
Lexicon Genetics (LEXG)
Genzyme Corp (GENZ)
United Therapeutics (UTHR)
Exelixis (EXEL)
Epix Pharmaceuticals (EPIX)
Largest Convertible Securities (private companies)
Concentric Medical
CardioNET
Matritech
PHT Corp.
Agensys
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Monday’s Top Biotech and Medical Stocks
Biotechnology
OSIRIS THERAPEUTICS [OSIR] +15.16%
QUESTOR PHARMACEUTCL [QSC] +11.11%
IDM PHARMA INC [IDMI] +9.77%
IMMUNOMEDICS INC [IMMU] +7.56%
BIO-MATRIX SCIENTIFI [BMSN.OB] +7.14%
Diagnostic Substances
SONUS PHARM INC [SNUS] +4.36%
GENE LOGIC INC [GLGC] +3.66%
ADVANCE MAGNETIC [AMAG] +3.61%
EPICEPT CORPORATION [EPCT] +3.26%
REMOTEMDX INC [RMDX.OB] +3.17%
Drug Delivery
COLUMBIA LABS INC [CBRX] +12.58%
PETMED EXPRESS INC [PETS] +11.50%
FLAMEL TECH SA ADR [FLML] +8.68%
SYMBOLLON PHARM CL A [SYMBA.OB] +6.67%
BIOPROGRESS PLC [BPRG] +5.17%
Drug Manufacturers
CONNETICS CP [CNCT] +45.77%
TAPESTRY PHARMA INC [TPPH] +14.97%
AVI BIOPHARMA INC [AVII] +10.30%
SOMAXON PHARMACEUTIC [SOMX] +4.67%
ACCESS PHARMACEUTICL [ACCP.OB] +3.64%
Medical Appliances & Equipment
LANGER INC [GAIT] +8.41%
ARRHYTHMIA RES TECH [HRT] +8.26%
VNUS MEDICAL TECHNOL [VNUS] +3.67%
AMER MED ALERT CP [AMAC] +3.47%
CELSION CORP [CLN] +3.38%
Medical Instruments & Supplies
NEPHROS INC. [NEP] +18.18%
APPLIED IMAGING CORP [AICX.OB] +11.44%
BIOJECT MEDICAL [BJCT] +10.34%
APA ENTERPRISES [APAT] +8.80%
ENDOLOGIX INC [ELGX] +6.32%
Medical Laboratories & Research
GENOMIC HEALTH, INC. [GHDX] +4.66%
OSI PHARMACEUTIC [OSIP] +3.66%
SPHERIX INC [SPEX] +1.96%
BRITESMILE INC [BSML] +0.88%
ALLIANCE IMAGING INC [AIQ] +0.61%
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