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
Athersys, The Next Wannabe 10-Bagger in Biotech (ATHX, PFE)
Athersys, Inc. (NASDAQ: ATHX) is soaring on the announcement by the company that it entered into a development and commercialization pact with Pfizer Inc. (NYSE: PFE). The pact is for MultiStem(R) for the treatment of Inflammatory Bowel Disease. As traders and investors look (and hope) for potential 10-baggers in small-cap and low-priced biotech shares, this one is seeing very exacerbated trading activity.
Athersys will receive a $6 million cash payment up front from Pfizer to fund the research during the first and initial part of this pact. The standout note from Pfizer is that it noted how Athersys represents a cornerstone of Pfizer’s stem cell and regenerative medicine plans. Athersys is eligible to receive milestone payments of UP TO $105 million upon the successful achievement of certain milestones in development, regulatory approvals and commercial limits.
Athersys shares are up a whopping 192% at $2.92 today after closing at 1.00 on Friday. Trading volume is almost 6.8 million shares as of 12:15 PM EST, and the average trading volume is only 30,000 shares per day… Sorry, it was only that amount. Even after the huge gain, the market cap is listed as a mere $54 million.
To show how much traders are willing to chase the companies on any such news, this stock has an intra-day high listed as $3.95. Athersys was very briefly an $8.00 stock back in 2007 when it came public. In 2008 it slid from over $4 down to under $1.00 throughout the year. Shares had recovered off of lows, but nothing at all like what we are seeing today.
As of September 30, 2009, the company had $18.8 million in cash and short-term investments, and listed another $3.94 million in long-term investments. Its total liabilities are listed as only $1.665 million.
JON C. OGG
DECEMBER 21, 2009
Positive Biotech Analyst Calls (AMGN, ATHX, DNA, GILD, SEPR)
These are some of the upgrades and positive calls already being seen in the biotech sector this Thursday morning:
- Amgen (NASDAQ: AMGN) Started as Buy at Deutsche Bank.
- Athersys (NASDAQ: ATHX) started as Buy at Lazard Capital.
- Genentech (NYSE: DNA) Started as Buy By Deutsche Bank.
- Gilead (NASDAQ: GILD) Started as Buy at Deutsche Bank.
- Sepracor (NASDAQ: SEPR) raised to Buy at UBS.
You can see the list of negative calls and downgrades here.
Jon Ogg
June 19, 2008
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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