BioHealth Investor On Vacation!!
It has been a hectic couple of weeks as I am currently moving both my home and office!
BioHealth Investor will be back in full swing in about one week. The daily top stocks update, and articles from contributors will be back as usual, but on top of that, a new feature here on BioHealth Investor: weekly insider buys report!
See you soon!
Dr.Hisham S. Ayoub, DMD
BioHealth Investor.com
Monday's Top Biotech & Medical Stocks
by H.S. Ayoub
BioHealth Investor
Biotechnology
CORCEPT THERAPEUTICS [CORT] +12.98%
NEOSE TECH INC [NTEC] +11.72%
ONYX PHARM INC [ONXX] +10.17%
PHARMACOPEIA INC [PCOP] +9.37%
VIA PHARMACEUTICALS [VIAP] +7.67%
Diagnostic Substances
INTERLEUKIN GENETICS [ILI] +9.77%
EPICEPT CORPORATION [EPCT] +5.16%
TRINITY BIO ADR [TRIB] +5.16%
NEOGEN CP [NEOG] +2.17%
GENELABS TECH INC [GNLB] +1.95%
Drug Delivery
ACURA PHARMACEUTICAL [ACUR.OB] +5.08%
INSITE VISION INC [ISV] +4.55%
MATRIXX INITIATVS [MTXX] +1.48%
EMISPHERE TECH [EMIS] +0.76%
PENWEST PHARM CO [PPCO] +0.32%
Drug Manufacturers
PLANET TECHS INC [PLNT.OB] +90.48%
ATHEROGENICS INC [AGIX] +18.84%
PROTALEX INC [PRTX.OB] +10.71%
SIGA TECH INC [SIGA] +7.27%
GERON CORP [GERN] +6.97%
Drug Related Products
CHINA SHENGHUO PHARM [KUN] +8.22%
IMAGENETIX INC [IAGX.OB] +4.35%
MANNATECH INC [MTEX] +2.94%
N B T Y INC [NTY] +1.15%
DRAXIS HEALTH INC [DRAX] +1.08%
Generic Drugs
ISOLAGEN INC [ILE] +4.34%
Medical Appliances & Equipment
THERAGENICS CORP [TGX] +6.39%
IVIVI TECHNOLOGIES, [II] +5.85%
SRI/SURGICAL EXPRE [STRC] +5.31%
ZYNEX MEDICAL HLDGS [ZYNX.OB] +4.85%
HEALTHTRONICS INC [HTRN] +4.28%
Medical Instruments & Supplies
ARISTOTLE CP [ARTL] +9.55%
OPHTHALMIC IMAGING SYS INC [OISI.OB] +8.40%
STEN CORPORATION [STEN] +6.76%
BIOMERICA INC [BMRA.OB] +6.36%
APA ENTERPRISES [APAT] +5.83%
Medical Laboratories & Research
BIO-IMAGING TECH [BITI] +9.35%
AETERNA ZENTARIS [AEZS] +5.26%
NEOGENOMICS INC [NGNM.OB] +1.63%
RADNET INC [RDNT] +0.23%
- Friday’s Top Biotech & Medical Stocks
- Thursday’s Top Biotech & Medical Stocks
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Cancer Stocks Weekly Review: Market Laggards
by Alan J. Brochstein, CFA
AB Analytical Services
The universe of cancer stocks rose somewhat, with a few very high returns helping the average. The median return of the group now is -3% on the year thus far (it would be lower, but a few stocks fell out of the universe). The AMEX Biotech Index (BTK) is up about 3% on the year. The lists below, with data from StockVal, are comprised of domestic companies primarily with market caps in excess of $50mm, ranked by the return this past week. The total universe is 103 names, though only 93 qualify at this time. If the reader believes that there are erroneous inclusions or exclusions, feel free to let me know.
The market continued its rally this month and is now up again year-to-date. The median weekly return for the cancer stocks was 0.9%, about -1.4% below the S&P 500. The average increase, though, of 1.5% was -0.8% behind the market. Clearly, the cancer space has been lagging the bounce in the market. While it might seem immune from the developing problems that are related to housing woes and a rapidly spreading commercial credit crunch, the group, one must remember, is predominated by companies that frequently access public equity markets (debt sometimes too) for funding. In times like these, it is worthwhile remembering that capital isn’t always available. In other words, perhaps, for now, one should be focusing on companies that are profitable. For more on this subject, see the article published recently at BioHealth Investor.
STRONG
There were six double-digit gainers this week, with two of them having been in the top 15% during the prior week (Enzon and Accentia). Hana Biosciences (HNAB) received Fast Track designation for Marqibo from the FDA 
for “the treatment of adult patients with Philadelphia chromosome negative acute lymphoblastic leukemia (ALL) in second relapse or who have failed two lines of prior therapy.” This resulted in an upgrade from an analyst who deemed the company more likely to survive the financial pressures after having suffered a couple of setbacks earlier. Idera (IDP), one of the better performers in the group this year, tacked on a significant addition to its gains. I was unable to find any news beyond a filing of a $50mm shelf a week ago. Post-ASCO, this developer of toll-like receptor antagonists with partnerships with Merck (MRK) and Novartis (NVS), slid from 9 to 7 and appears to be trying to take on the multi-year high of 10. Accentia Biopharma (ABPI) had jumped last week on SinuNase data but then retreated. It recovered some of that lost ground this week but remains mired in a downtrend. Fundamentally, the company has an extremely challenging balance sheet and is extremely reliant on receiving FDA approval for this chronic rhinosinusitis drug. Late in the week, the company terminated a distribution agreement with a distributor and has to deliver over 1mm shares to them (with a put as well). Arqule (ARQL) has moved to respectable performance on the year, boosted by a partnership agreement announced by competitor Exelixis (EXEL). Both companies are developing c-Met inhibitors (as is SGXP). All three of these companies are performing well year-to-date. Enzon (ENZN) pocketed $93mm by selling ¼ of its interests in Peg-Intron to Schering Plough. Not bad for a company with a market cap of under $400mm. Don’t get too excited though, as the company has $381mm in long-term debt! While this company is focused on cancer as well, its drugs on the market revolve around treating adjacent diseases. Finally, Cytokinetics (CYTK) saw a director step up and buy some stock. This company, focused on both cardio and cancer, has been mired in a downtrend since its 2004 IPO and has been flirting with the magic $5 on the downside.
WEAK
Investors continue to shun weaker balance sheets and companies with large expected losses. Synta (SNTA), which finally conducted its IPO earlier this year after a 
2-year attempt (and well below its proposed range) and never saw the light of day, broke down after reporting earnings earlier this month. I guess someone figured out this week that this company is not going anywhere fast and sold the stock. I can’t really comment in a meaningful way about the likelihood of this company succeeding (they have a Phase 2 compound), but the 4 analysts sure are expecting major losses between now and then. Kosan (KOSN) had rallied last week but reversed course this week after having announced a shelf filing in the previous week. Zymogenetics (ZGEN) bolted to multi-year lows on an FDA review extension.
The two screens below attempt to focus the investor on stocks that are working. The momentum list highlights stocks beating the market over the past month and quarter but eliminates those that have had extreme moves. The rebound list highlights stocks that are oversold but showing one-month relative strength without too much one-quarter relative weakness (if at all).
SHOWING MO
Parameters: 4-week outpeformance (S&P 500) of 3% or more, 13-week outperformance of 10% or more and Price Momentum Index of <2
This list is what biotech investors live for: Look at all the 50%+ returns! Onyx (ONXX) has been the very best stock this year, aided by its Nexevar, which is on the European market and received a priority review this week from the FDA. It had pulled back from a multi-year high post-ASCO (after selling stock at $28) and is now challenging that level again. I don’t know enough about Nexevar (they are testing it for a variety of cancers beyond the approved liver treatment), but I would note that this one looks like it has a good shot at its all-time high of 60 three plus years ago (and then some). One has to wonder what Bayer would be willing to
pay to control the drug. I have profiled Clevland Bio (CBLI) in this section before – looks like it is worth some attention here. I mentioned two weeks ago that Myriad (MYGN) is one that I missed and continue to have my eyes upon. For a quick review of the company, see an article I wrote earlier this year. Finally, Intuitive Surgical (ISRG) is a fantastic company that I personally sold too early. It has held up remarkably well. While I remain convinced of the long-term potential, I believe that not only does the current price reflect the opportunities but that it doesn’t offer much protection from a soft quarter should that happen.
POTENTIAL REBOUNDS
Parameters: 4-week outperformance of >5%, 13-week underperformance of <5% and Price Momentum Index of <0.
Dyax (Dyax) is showing some signs of life, though it remains well below the $7 area that has served as resistance over the past couple of years. I don’t know about their products enough to comment, but their balance sheet is quite strapped, even after their recent offering at 3.67 for $41.5mm. The rally since the July offering looks reflexive only.
Disclosure: None.
RELATED READING:
- Cancer Stocks Weekly Review: OK Week, But Several Big Losers
- Cancer Stocks Weekly Review: Very Strong Week
- Cancer Stock Weekly Review: Now Down 10% YTD
AB Analytical Services is a regular contributor to BioHealth Investor
_____________________
Friday's Top Biotech & Medical Stocks
by H.S. Ayoub
BioHealth Investor
Biotechnology
LPATH INC [LPTN.OB] +12.90%
IDERA PHARMACEUTICAL [IDP] +9.66%
REPLIDYNE, INC. [RDYN] +7.95%
PROTALIX BIOTHERAPEU [PLX] +6.62%
LEV PHARMACEUTICALS [LEVP.OB] +6.45%
Diagnostic Substances
ASPENBIO PHARMA INC [APNB.OB] +6.07%
PONIARD PHARMA [PARD] +4.22%
ABAXIS INC [ABAX] +4.02%
QUIDEL CP [QDEL] +3.77%
REMOTEMDX INC [RMDX.OB] +3.57%
Drug Delivery
ELAN CP PLC ADR [ELN] +5.69%
NOVEN PHARMACEUTIC [NOVN] +2.86%
FLAMEL TECH SA ADR [FLML] +2.51%
COLUMBIA LABS INC [CBRX] +1.77%
PETMED EXPRESS INC [PETS] +1.68%
Drug Manufacturers
WUXI PHARMATECH ADS [WX] +12.65%
ACCESS PHARMACEUTICL [ACCP.OB] +9.72%
ARQULE INC [ARQL] +9.59%
SIGA TECH INC [SIGA] +8.35%
[SCMP] +7.43%
Drug Related Products
TIENS BIOTECH GR USA [TBV] +3.61%
SCHIFF NUTRIT INTL [WNI] +2.75%
SALIX PHARM DEL [SLXP] +2.61%
USANA HEALTH SCIEN [USNA] +1.94%
CURATECH INDUSTRIES [CUTC.OB] +1.69%
Generic Drugs
ISOLAGEN INC [ILE] +4.80%
CATALYST PHARMACEUTI [CPRX] +2.48%
CARACO PHARMA LABS [CPD] +1.90%
MYLAN LABS INC [MYL] +1.40%
BARR PHARMA INC [BRL] +0.15%
Medical Appliances & Equipment
LECTEC CORP [LECT.OB] +15.38%
BSD MEDICAL CORP [BSM] +14.73%
ARRHYTHMIA RES TECH [HRT] +9.76%
CRITICARE SYS INC [CMD] +6.67%
CYBERONICS INC [CYBX] +4.29%
Medical Instruments & Supplies
NUCRYST PHARMACEUTIC [NCST] +13.52%
EP MEDSYSTEMS INC [EPMD] +8.16%
ARISTOTLE CP [ARTL] +7.42%
CRYOCOR, INC. [CRYO] +6.91%
ADVANCED MED OPTICS [EYE] +5.05%
Medical Laboratories & Research
ENZO BIOCHEM INC [ENZ] +6.04%
MEDTOX SCIENTFIC INC [MTOX] +4.28%
PHARM PROD DEV [PPDI] +1.01%
GENOMIC HEALTH, INC. [GHDX] +1.01%
QUEST DIAGNOSTC [DGX] +0.91%
- Thursday’s Top Biotech & Medical Stocks
- Wednesday’s Top Biotech & Medical Stocks
____________________
Thursday's Top Biotech & Medical Stocks
by H.S. Ayoub
BioHealth Investor
Biotechnology
NORTHFIELD LABS IN [NFLD] +28.33%
OPTIMER PHARMACEUTIC [OPTR] +10.12%
NUVELO INC NEW [NUVO] +9.47%
TARGETED GENETICS CP [TGEN] +9.20%
REPLIGEN CP [RGEN] +7.23%
Diagnostic Substances
GENE LOGIC INC [GLGC] +13.56%
AVIGEN INC [AVGN] +11.18%
ASPENBIO PHARMA INC [APNB.OB] +2.75%
REMOTEMDX INC [RMDX.OB] +2.53%
PONIARD PHARMA [PARD] +2.42%
Drug Delivery
ELAN CP PLC ADR [ELN] +2.36%
MATRIXX INITIATVS [MTXX] +2.31%
COLUMBIA LABS INC [CBRX] +2.26%
INSITE VISION INC [ISV] +1.75%
DELCATH SYSTEMS INC [DCTH] +1.44%
Drug Manufacturers
WUXI PHARMATECH ADS [WX] +6.78% $0
ATHEROGENICS INC [AGIX] +6.02%
ELITE PHARMA INC [ELI] +5.50%
PROVECTUS PHARMA [PVCT.OB] +4.74%
ADOLOR CORP [ADLR] +4.19%
Drug Related Products
CURATECH INDUSTRIES [CUTC.OB] +25.53%
NATROL INC [NTOL] +5.97%
DRAXIS HEALTH INC [DRAX] +2.66%
ZILA INC [ZILA] +2.54%
NATURAL ALTERNATIV [NAII] +2.16%
Generic Drugs
LOTUS PHARMACEUTICAL [LTUS.OB] +22.22%
CATALYST PHARMACEUTI [CPRX] +9.15%
HI-TECH PHARMACAL [HITK] +2.56%
HELICOS BIOSCIENCES [HLCS] +1.60%
WATSON PHARMACEUTCLS [WPI] +1.54%
Medical Appliances & Equipment
MEDICAL SOLUTION MGT [MSMT.OB] +44.83%
BSD MEDICAL CORP [BSM] +18.35%
ARRHYTHMIA RES TECH [HRT] +13.36%
WORLD HEART CORP [WHRT] +12.68%
ESCALON MED CP [ESMC] +10.80%
Medical Instruments & Supplies
LEMAITRE VASCULAR [LMAT] +9.09%
STEN CORPORATION [STEN] +7.45%
ARISTOTLE CP [ARTL] +6.54%
PRO-DEX INC NEW [PDEX] +6.54%
EP MEDSYSTEMS INC [EPMD] +6.35%
Medical Laboratories & Research
ALLIANCE IMAGING INC [AIQ] +2.82%
BIO-IMAGING TECH [BITI] +2.47%
NEOGENOMICS INC [NGNM.OB] +1.67%
SPHERIX INC [SPEX] +1.60%
MEDTOX SCIENTFIC INC [MTOX] +1.28%
- Wednesday’s Top Biotech & Medical Stocks
- Tuesday’s Top Biotech & Medical Stocks
____________________
Wednesday's Top Biotech & Medical Stocks
by H.S. Ayoub
BioHealth Investor
Biotechnology
HANA BIOSCIENCES INC [HNAB] +23.53%
INNOVIVE PHARMACEUTL [IVPH.OB] +16.84%
NUVELO INC NEW [NUVO] +16.56%
ADVANCED LIFE SCIENC [ADLS] +14.20%
OPEXA THERAPEUTICS [OPXA] +13.43%
Diagnostic Substances
[IMRX] +10.00%
EPICEPT CORPORATION [EPCT] +9.62%
AVALON PHARMACEUTIC [AVRX] +8.74%
RESPONSE GENETICS, I [RGDX] +5.88%
HUMAN GENOME SCI [HGSI] +5.70%
Drug Delivery
ELAN CP PLC ADR [ELN] +3.29%
PETMED EXPRESS INC [PETS] +2.37%
EMISPHERE TECH [EMIS] +2.04%
FLAMEL TECH SA ADR [FLML] +1.52%
GENEREX BIOTECH CORP [GNBT] +1.33%
Drug Manufacturers
SANTARUS, INC. [SNTS] +16.94%
ACCESS PHARMACEUTICL [ACCP.OB] +8.06%
POZEN INC [POZN] +6.77%
BIODEL INC. [BIOD] +6.19%
PROVECTUS PHARMA [PVCT.OB] +6.15%
Drug Related Products
QUEST GROUP INTL [QSTG.OB] +8.00%
IMAGENETIX INC [IAGX.OB] +4.55%
NUTRACEUTICAL INTL [NUTR] +4.04%
MANNATECH INC [MTEX] +3.42%
PRESTIGE BRAND HLGS [PBH] +3.26%
Generic Drugs
CATALYST PHARMACEUTI [CPRX] +9.26%
WATSON PHARMACEUTCLS [WPI] +2.52%
MYLAN LABS INC [MYL] +2.00%
CARACO PHARMA LABS [CPD] +0.54%
PHARMACUTICAL CO [PRX] +0.35%
Medical Appliances & Equipment
ARRHYTHMIA RES TECH [HRT] +15.78%
SPAN AMERICA MED S [SPAN] +10.76%
DEL GLOBAL TECH CORP [DGTC.OB] +9.80%
CRITICARE SYS INC [CMD] +7.74%
ZYNEX MEDICAL HLDGS [ZYNX.OB] +7.62%
Medical Instruments & Supplies
ENDOLOGIX INC [ELGX] +11.15%
PROTHERICS PLC ADR [PTIL] +10.62%
MEMRY CORPORATION [MRY] +9.22%
CANTEL MEDICAL CORP [CMN] +7.64%
NUCRYST PHARMACEUTIC [NCST] +7.00%
Medical Laboratories & Research
SPHERIX INC [SPEX] +9.55%
INSIGHT HLTH SVC HLD [ISGTV.OB] +7.69%
MEDTOX SCIENTFIC INC [MTOX] +7.08%
ALLIANCE IMAGING INC [AIQ] +3.15%
RADNET INC [RDNT] +2.79%
- Tuesday’s Top Biotech & Medical Stocks
- Monday’s Top Biotech & Medical Stocks
____________________
Tuesday's Top Biotech & Medical Stocks
by H.S. Ayoub
BioHealth Investor
Biotechnology
ANESIVA INC [ANSV] +12.88%
CORCEPT THERAPEUTICS [CORT] +9.42%
REXAHN PHARMACEUTICL [RXHN.OB] +7.69%
ANADYS PHARMACEUTICA [ANDS] +7.01%
DISCOVERY LABS INC [DSCO] +6.58%
Diagnostic Substances
SCOLR PHARMA INC [DDD] +29.63%
SONUS PHARM INC [SNUS] +5.70%
ASPENBIO PHARMA INC [APNB.OB] +5.29%
AVALON PHARMACEUTIC [AVRX] +3.58%
INTERLEUKIN GENETICS [ILI] +3.36%
Drug Delivery
DELCATH SYSTEMS INC [DCTH] +5.42%
EMISPHERE TECH [EMIS] +2.61%
ELAN CP PLC ADR [ELN] +2.44%
INSITE VISION INC [ISV] +1.77%
ARADIGM CORP [ARDM.OB] +1.74%
Drug Manufacturers
INTERPHARM HLDGS INC [IPA] +7.44
PROTALEX INC [PRTX.OB] +7.14%
SCICLONE PHARMA [SCLN] +6.67%
YM BIOSCIENCES INC [YMI] +5.33%
ISIS PHARM INC [ISIS] +5.07%
Drug Related Products
LABOPHARM INC. [DDSS] +20.12%
MEDICAL NUTRITN USA [MDNU] +7.69%
USANA HEALTH SCIEN [USNA] +7.67%
NATROL INC [NTOL] +5.41%
CHINA SHENGHUO PHARM [KUN] +2.86%
Generic Drugs
ISOLAGEN INC [ILE] +5.13%
CARACO PHARMA LABS [CPD] +1.52%
LOTUS PHARMACEUTICAL [LTUS.OB] +0.71%
Medical Appliances & Equipment
PATIENT SAFETY TECH [PSTX.OB] +15.38%
DIGIRAD CORPORATION [DRAD] +9.33%
ALLIED HEALTHCARE [AHPI] +7.32%
REGENERATION TECH [RTIX] +7.25%
SOMANETICS CORP [SMTS] +5.03%
Medical Instruments & Supplies
CAS MEDICAL SYS INC [CASM] +25.56%
VICOR TECHNOLOGIES [VCRT.OB] +13.64%
BIOJECT MEDICAL [BJCT] +10.85%
CPC OF AMERICA INC [CPCF.OB] +8.86%
VYTERIS INC [VYHN.OB] +7.00%
Medical Laboratories & Research
ENZO BIOCHEM INC [ENZ] +1.86%
NEOGENOMICS INC [NGNM.OB] +1.63%
PSYCHEMEDICS NEW [PMD] +1.13%
AETERNA ZENTARIS [AEZS] +0.35%
BIO-REFERENCE LAB [BRLI] +0.31%
- Monday’s Top Biotech & Medical Stocks
- Friday’s Top Biotech & Medical Stocks
____________________
Monday's Top Biotech & Medical Stocks
by H.S. Ayoub
BioHealth Investor
Biotechnology
METABASIS THERAPEUTI [MBRX] +11.72%
POLYDEX PHARM LTD [POLXF] +11.03%
ENZON PHARM INC [ENZN] +10.16%
CYTRX CP [CYTR] +8.73%
EURAND N.V. [EURX] +8.53%
Diagnostic Substances
HUMAN GENOME SCI [HGSI] +6.49%
IDEXX LABS [IDXX] +3.56%
MYRIAD GENETICS [MYGN] +3.21%
ISTA PHARMACTLS [ISTA] +2.75%
MONOGRAM BIOSCIENCES [MGRM] +2.48%
Drug Delivery
GENEREX BIOTECH CORP [GNBT] +2.65%
PETMED EXPRESS INC [PETS] +2.54%
MATRIXX INITIATVS [MTXX] +1.22%
FLAMEL TECH SA ADR [FLML] +1.06%
NOVEN PHARMACEUTIC [NOVN] +0.74%
Drug Manufacturers
WUXI PHARMATECH ADS [WX] +12.19%
SIGA TECH INC [SIGA] +8.52%
SINOVAC BIOTECH LTD [SVA] +6.98%
AVANIR PHARMACEUTICL [AVNR] +6.47%
ATHEROGENICS INC [AGIX] +6.40%
Drug Related Products
LABOPHARM INC. [DDSS] +6.29%
AUXILIUM PHARMACEUT [AUXL] +3.04%
N B T Y INC [NTY] +2.49%
PERRIGO COMPANY [PRGO] +2.26%
MANNATECH INC [MTEX] +2.02%
Generic Drugs
MYLAN LABS INC [MYL] +3.87%
BARR PHARMA INC [BRL] +1.71%
HI-TECH PHARMACAL [HITK] +1.59%
PHARMACUTICAL CO [PRX] +0.79%
Medical Appliances & Equipment
LECTEC CORP [LECT.OB] +11.43%
PATIENT SAFETY TECH [PSTX.OB] +6.56%
ENDOCARE INC [ENDO.OB] +5.63%
HEALTHTRONICS INC [HTRN] +5.36%
DYNATRONICS CP [DYNT] +4.84%
Medical Instruments & Supplies
PROTHERICS PLC ADR [PTIL] +16.77%
MEMRY CORPORATION [MRY] +13.14%
MILESTONE SCIENTIFIC [MLSS.OB] +11.11%
IMMUNOCELLULAR THERA [IMUC.OB] +8.91%
PRO-DEX INC NEW [PDEX] +6.80%
Medical Laboratories & Research
AETERNA ZENTARIS [AEZS] +13.55%
NEOGENOMICS INC [NGNM.OB] +3.36%
ERESEARCHTECHNOLOG [ERES] +2.18%
BIO-REFERENCE LAB [BRLI] +1.99%
ENZO BIOCHEM INC [ENZ] +1.77%
- Friday’s Top Biotech & Medical Stocks
- Thursday’s Top Biotech & Medical Stocks
____________________
Cancer Stocks Weekly Review: OK Week, But Several Big Losers
by Alan J. Brochstein, CFA
AB Analytical Services
The universe of cancer stocks was mixed, with most stocks beating the market but several big declines weighing the average return down. The median return of the group now -9% on the year thus far. The AMEX Biotech Index (BTK) remains slightly positive on the year. The lists below, with data from StockVal, are comprised of domestic companies primarily with market caps in excess of $50mm, ranked by the return this past week. I did add several names this week, so the universe is now 103 stocks. If the reader believes that there are erroneous inclusions or exclusions, feel free to let me know.
Despite the big reversal late in the week, the overall market ended down for the week. The median weekly return for the cancer stocks was -0.1%, about 0.5% above the S&P 500. The average decline, though, of -1.75% was -1.2% behind the market. While it might seem immune from the developing problems that are related to housing woes and a rapidly spreading commercial credit crunch, the group, one must remember, is predominated by companies that frequently access public equity markets (debt sometimes too) for funding. In times like these, it is worthwhile remembering that capital isn’t always available. In other words, perhaps, for now, one should be focusing on companies that are profitable. For more on this subject, see the article published recently at BioHealth Investor.
STRONG
The week looked much more normal than the short-covering panic in the prior week, with five stocks up in excess of 10%. Three of those had already been performing well year-to-date. The three stocks profiled with big gains last week, not 
surprisingly, reversed this week. Seattle Genetics (SGEN) rocketed higher and moved its YTD gains to 110%. There was no news; the stock was merely rebounding from a rough bout of profit-taking early in the month. This one technically is as good as it gets – heading for an all-time high on decent volume. Regeneron (REGN) received a milestone payment for a non-cancer drug and also received a priority review from the FDA for a non-cancer drug. Bionovo (BNVI), which has been quietly basing lately (ever since their new CFO showed up to work). This stock transitioned from the OTC Bulletin Board in May. The stock has been rallying apparently on the basis of a metastatic breast cancer Phase I/II trial as well as a menopause drug. The company has no Wall Street coverage. Kosan (KOSN) rallied despite filing for a shelf in what looked like merely a short-covering rally. Finally, Poniard (PARD), which has pulled back sharply from its ASCO release of Phase 2 results on a Picoplatin trial, appears to be trying to form an interim bottom.
WEAK
The biggest losers on the week were entirely different from the losers last week. One common denominator, though, is that in both weeks, the list was dominated by 
stocks that are having bad years. Accuray (ARAY), the recent $18 IPO that is now clearly busted, disappointed the street in its second earnings release as a public company. The quarter seemingly met expectations, but analysts dialed back their future expectations due to slightly muted sales guidance and higher-than-expected costs and expenses. For investors in this one-trick pony (it seemed like a good trick), ouch! After rising to as high as 31 after the offering, the stock is now in dire straits technically. While the numbers sure look good for valuation and growth, management credibility has taken a big hit apparently. Inovio (INO) is on a death-march – no further comments necessary. Micromet (MITI) ditto. Vion (VION) double-ditto. Sciclone (SCLN) ditto. For those who wonder why I characterize these last four that all fell in excess of 15% on no news in such a negative way, each is making all-time or multi-year lows and has a bad balance sheet on top of limited chance of earnings in the next several years (SCLN is ok on the capital front for a while). Definitely the types of stocks to avoid in this capital crunch
The two screens below attempt to focus the investor on stocks that are working. The momentum list highlights stocks beating the market over the past month and quarter but eliminates those that have had extreme moves. The rebound list highlights stocks that are oversold but showing one-month relative strength without too much one-quarter relative weakness (if at all).
SHOWING MO
Parameters: 4-week outpeformance (S&P 500) of 3% or more, 13-week outperformance of 10% or more and Price Momentum Index of <2
This list is what biotech investors live for: Look at all the 50%+ returns! Celsion (CLN) is uncovered by Wall Street. The company has a primary liver cancer Phase 1 trial being designed under a SPA with the FDA. The company has sharpened its focus lately, having disposed of non-core assets. It also has a Phase 3 trial underway for Hepatocellular Carcinoma. I mentioned last week that Myriad (MYGN) is one that I missed and continue to have my eyes upon. For a quick review of the company, see an article I wrote earlier this year.
POTENTIAL REBOUNDS
Parameters: 4-week outperformance of >5%, 13-week underperformance of <5% and Price Momentum Index of <0.
Celgene (CELG) bounced on the heels of a strong earnings report, but is retreating now. With that
said, though, I would be very cautious on the name, as I expect that this 20-bagger over the past 5 years could get dragged down in the market sell-off. Array (ARRY) is one that is probably worth a look in the future. They have strong management and many early-stage drugs in development but will need more capital.
Disclosure: None.
RELATED READING:
- Cancer Stocks Weekly Review: Very Strong Week
- Cancer Stock Weekly Review: Now Down 10% YTD
- Cancer Stocks Weekly Review: Falling with the Market
AB Analytical Services is a regular contributor to BioHealth Investor
_____________________
Cancer Stocks Weekly Review: OK Week, But Several Big Losers
by Alan J. Brochstein, CFA
AB Analytical Services
The universe of cancer stocks was mixed, with most stocks beating the market but several big declines weighing the average return down. The median return of the group now -9% on the year thus far. The AMEX Biotech Index (BTK) remains slightly positive on the year. The lists below, with data from StockVal, are comprised of domestic companies primarily with market caps in excess of $50mm, ranked by the return this past week. I did add several names this week, so the universe is now 103 stocks. If the reader believes that there are erroneous inclusions or exclusions, feel free to let me know.
Despite the big reversal late in the week, the overall market ended down for the week. The median weekly return for the cancer stocks was -0.1%, about 0.5% above the S&P 500. The average decline, though, of -1.75% was -1.2% behind the market. While it might seem immune from the developing problems that are related to housing woes and a rapidly spreading commercial credit crunch, the group, one must remember, is predominated by companies that frequently access public equity markets (debt sometimes too) for funding. In times like these, it is worthwhile remembering that capital isn’t always available. In other words, perhaps, for now, one should be focusing on companies that are profitable. For more on this subject, see the article published recently at BioHealth Investor.
STRONG
The week looked much more normal than the short-covering panic in the prior week, with five stocks up in excess of 10%. Three of those had already been performing well year-to-date. The three stocks profiled with big gains last week, not surprisingly, reversed this week. Seattle Genetics (SGEN) rocketed higher and moved its YTD gains to 110%. There was no news; the stock was merely rebounding from a rough bout of profit-taking early in the month. This one technically is as good as it gets – heading for an all-time high on decent volume. Regeneron (REGN) received a milestone payment for a non-cancer drug and also received a priority review from the FDA for a non-cancer drug. Bionovo (BNVI), which has been quietly basing lately (ever since their new CFO showed up to work). This stock transitioned from the OTC Bulletin Board in May. The stock has been rallying apparently on the basis of a metastatic breast cancer Phase I/II trial as well as a menopause drug. The company has no Wall Street coverage. Kosan (KOSN) rallied despite filing for a shelf in what looked like merely a short-covering rally. Finally, Poniard (PARD), which has pulled back sharply from its ASCO release of Phase 2 results on a Picoplatin trial, appears to be trying to form an interim bottom.
WEAK
The biggest losers on the week were entirely different from the losers last week. One common denominator, though, is that in both weeks, the list was dominated by stocks that are having bad years. Accuray (ARAY), the recent $18 IPO that is now clearly busted, disappointed the street in its second earnings release as a public company. The quarter seemingly met expectations, but analysts dialed back their future expectations due to slightly muted sales guidance and higher-than-expected costs and expenses. For investors in this one-trick pony (it seemed like a good trick), ouch! After rising to as high as 31 after the offering, the stock is now in dire straits technically. While the numbers sure look good for valuation and growth, management credibility has taken a big hit apparently. Inovio (INO) is on a death-march – no further comments necessary. Micromet (MITI) ditto. Vion (VION) double-ditto. Sciclone (SCLN) ditto. For those who wonder why I characterize these last four that all fell in excess of 15% on no news in such a negative way, each is making all-time or multi-year lows and has a bad balance sheet on top of limited chance of earnings in the next several years (SCLN is ok on the capital front for a while). Definitely the types of stocks to avoid in this capital crunch
The two screens below attempt to focus the investor on stocks that are working. The momentum list highlights stocks beating the market over the past month and quarter but eliminates those that have had extreme moves. The rebound list highlights stocks that are oversold but showing one-month relative strength without too much one-quarter relative weakness (if at all).
SHOWING MO
Parameters: 4-week outpeformance (S&P 500) of 3% or more, 13-week outperformance of 10% or more and Price Momentum Index of <2
This list is what biotech investors live for: Look at all the 50%+ returns! Celsion (CLN) is uncovered by Wall Street. The company has a primary liver cancer Phase 1 trial being designed under a SPA with the FDA. The company has sharpened its focus lately, having disposed of non-core assets. It also has a Phase 3 trial underway for Hepatocellular Carcinoma. I mentioned last week that Myriad (MYGN) is one that I missed and continue to have my eyes upon. For a quick review of the company, see an article I wrote earlier this year.
POTENTIAL REBOUNDS
Parameters: 4-week outperformance of >5%, 13-week underperformance of <5% and Price Momentum Index of <0.
Celgene (CELG) bounced on the heels of a strong earnings report, but is retreating now. With that
said, though, I would be very cautious on the name, as I expect that this 20-bagger over the past 5 years could get dragged down in the market sell-off. Array (ARRY) is one that is probably worth a look in the future. They have strong management and many early-stage drugs in development but will need more capital.
Disclosure: None.
RELATED READING:
- Cancer Stocks Weekly Review: Very Strong Week
- Cancer Stock Weekly Review: Now Down 10% YTD
- Cancer Stocks Weekly Review: Falling with the Market
AB Analytical Services is a regular contributor to BioHealth Investor
_____________________
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