Quest For 10-Baggers in BioHealth in 2010 (JAZZ, TRGT, VNDA, DNDN, HGSI, CGEN, BNVI, QCOR, ACHN, PSDV, ATHX, SNSS, AVNR, BIOD, ALXA, CTIC)
If one thing was noticed in biotech stocks, or BioHealth stocks as we often say, it was that investors, traders, and speculators all piled into the chase for the next ten-bagger late in the year. When you have as many biotech and BioHealth stocks that ran over 1,000% in 2009 that is only to be expected…. hence the 10-bagger comments. We had many biotech and biohealth shares rally from their lows significantly this year, with companies such as Jazz Pharmaceuticals, Inc. (NASDAQ: JAZZ), Targacept, Inc. (NASDAQ: TRGT), Vanda Pharmaceuticals, Inc. (NASDAQ: VNDA), Dendreon Corp. (NASDAQ: DNDN), and Human Genome Sciences, Inc. (NASDAQ: HGSI) all being in or having been in the 10-bagger club this year.
But late in 2009 we started seeing an onslaught of low-priced stocks with small cap or micro-cap values running rapidly higher on news. In some cases these faded, and in some not. We saw the traders run up shares of Compugen Ltd. (NASDAQ: CGEN), Bionovo, Inc. (NASDAQ: BNVI), Questcor Pharmaceuticals, Inc. (NASDAQ: QCOR), Achillion Pharmaceuticals, Inc. (NASDAQ: ACHN), pSivida Corp. (NASDAQ: PSDV), Athersys, Inc. (NASDAQ: ATHX), Sunesis Pharmaceuticals, Inc. (NASDAQ: SNSS), and AVANIR Pharmaceuticals, Inc. (NASDAQ: AVNR) on news late in 2009. Also covered as potentials for this are Biodel Inc. (NASDAQ: BIOD), Alexza Pharmaceuticals, Inc. (NASDAQ: ALXA), and Cell Therapeutics, Inc. (NASDAQ: CTIC).
We have reviewed each of these and given a synopsis for each to see if these could be the 10-baggers for 2010.
Read more
Analyst Sees Exponential Gains in Achillion (ACHN)
Achillion Pharmaceuticals, Inc. (NASDAQ: ACHN) is trading higher yet again as traders and investors continue to chase low-priced small-cap biotech stocks. A boutique brokerage firm called Roth Capital initiated coverage with a BUY rating, calling it one of the best value plays in the hepatitis C space currently. Achillion has been one of the small cap and low-priced stocks in biotech being chased around as traders look and hope for the next ten-bagger. We are checking on the firm’s target as we saw a $12 target on the stock, but that implies exponential upside to today’s price.
Now that the market has opened we have shares trading at $3.68, up 15% from its $3.18 close on Tuesday. The 52-week trading range is $0.65 to $3.89 and the market cap even after today’s gain is a mere $98 million.
The 52-week trading range is $0.65 to $3.89 and the average volume is only about 220,000 shares.
JON C. OGG
DECEMBER 23, 2009
Achillion Becomes Next Biotech Stock Chase (ACHN)
Achillion Pharmaceuticals, Inc. (NASDAQ: ACHN) is yet another example of traders, investors, and speculators willingness to chase drug development study news. With the major gainers we have seen in 2009 and as we are entering year-end, this is actually of little surprise. Still, you have to wonder when you see these stocks get chased and chased even if it can go on for days.
The company late yesterday reported “proof of concept data” from the preliminary results of its phase 1b clinical trial of ACH-1625. This study showed that treatment with ACH-1625 achieved a mean 3.94 log10 reduction in HCV RNA after five-day monotherapy, with continued good safety and tolerability in patients with hepatitis C (HCV). ACH-1625 is an inhibitor of HCV NS3 protease that was discovered and is being developed by Achillion. Keep in mind that Phase I data is very preliminary.
Shares are up 63% at $3.48 after closing at $2.15 yesterday. The company’s prior 52-week range was $0.65 to $2.42 before thsi morning. The market cap even after today’s gain is still only $92 million and average volume before today was 40,000 shares. At 8:45 AM EST we have already seen 2.3 million shares, so this one is exponential and parabolic on trading volume.
As of June 30, 2009, this one had over $20.4 million in combined cash and short-term investments, and only $10.19 million in total liabilities.
Jon C. Ogg
Achillion Pharmaceuticals (ACHN) Up On Revised Partnership
Achillion Pharmaceuticals (ACHN) and Gilead Sciences entered into an amendment to their Research Collaboration and License Agreement, dated November 24, 2004 under which Achillion and Gilead agreed to jointly develop compounds for use in treating hepatitis C infection which inhibit viral replication through a specified novel mechanism of action called NS4A antagonism.
Under the License Agreement, the Company and Gilead have been working together to develop one or more compounds for use in treating hepatitis C infection until proof-of-concept in one compound, as defined, is achieved. The current lead compound from the collaboration, ACH-1095, also known as GS 9525, is currently in late-stage preclinical assessment.
ACHN is up 7% on the news to $1.69.
Douglas A. McIntyre
Many Laggards in Biotech Stocks Today (ACHN, CRXL, MNKD, SQNM, CYTR, CYTX, INGN, ATHX, MITI, GTOP)
There have been many mystery movers today in biomed land and some are news carry-on moves while others are head-scratchers. Out of the many names we follow in biotech, here are some losers as of 1:50 PM EST that stand out compared to the normal days:
Achillion Pharmaceuticals, Inc. (ACHN) $2.45 Down $0.30 Down 10.91%
Additional ‘positive’ top-line phase 2 data for Elvucitabine
Crucell NV (CRXL) $18.13 Down $0.64 Down 3.41%
No fresh news
MannKind Corp. (MNKD) $2.7999 Down $0.1801 Down 6.04%
No fresh news besides tied to Novo’s news yesterday.
Sequenom Inc. (SQNM) $12.17 Down $0.66 Down 5.14%
Sued yesterday by Beckman and partner Orchid.
CytRx Corporation (CYTR) $0.7733 Down $0.0567 Down 6.83%
Drop on second day after Lou Gehrig’s drug delay.
Cytori Therapeutics, Inc. (CYTX) $7.94 $Down 0.62 Down 7.24%
No fresh news today, post patent selling after big 2-day move.
Introgen Therapeutics Inc. (INGN) $1.68 Down $0.09 Down 5.08%
No news, thin volume
Athersys, Inc. (ATHX) $2.80 Down$ 0.29 Down 9.39%
No news yet out of diabetes and obesity conference, ahead of data but super thin volume
Micromet, Inc. (MITI) $2.42 Down $0.20 Down 7.63%
No news, but presented non-Hodgkins data last week.
Genitope Corp. (GTOP) $0.075 Down $0.013 Down 14.29%
Received NASDAQ letter on listing, but very low stock price so no surprise.
Jon Ogg
June 10, 2008
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