Analysts Weighing In On BioHealth Stocks (AUXL, AVRX, CPHD, MEND, AMED)
These are some of the analyst calls impacting biotech, medical, and healthcare stocks right at the open this Thursday morning:
- Auxilium Pharmaceuticals (AUXL) Cut to Neutral from BUY at B of A.
- Avalon Pharma (AVRX) Cut to Hold from Buy at Cantor Fitzgerald.
- Cepheid (CPHD) Cut to Neutral from Buy at UBS.
- Micrus Endovascular (MEND) Started as Hold at Needham & Co.
Amedisys (AMED) Raised to Outperform from Mkt Perform By Wachovia… more into home based healthcare and hospice, but involves caring for the aged and ill.
Jon C. Ogg
August 14, 2008
When Barron’s Runs BioHealth Stocks (CEPH, AXL, ISRG)
Today we are seeing two stocks higher after Barron’s featured these over the weekend in what traders call “The Weekly Bible” in the business.
Cephalon (NASDAQ: CEPH) is trading up slightly after Barron’s covered its promiosing pipleline. With two new products on the market and one more in 2009, Barron’s thesis was that shares are not having the same problems as other bigger drug stocks and that shareholders should be sleeping easily here. Shares are only up 0.5% at $77.37, but it is a larger company with a market cap of more than $5 Billion.
Auxilium Pharmaceuticals (NASDAQ: AUXL) is seeing a sharp 5% gain today after Barron’s talked up its Testin product, a testosterone gel used by men to live more energetic lives. Barron’s noted that the Xiaflex drug for a hand treatment in the hundreds of thousands could have blockbuster status by 2011 after launching in 2009.
Barron’s can definitely make your biotech or drug stock rise when they cover it. But remember that the axe swings both ways. Back on July 28, 2008, shares of Intuitive Surgical (NASDAQ: ISRG) took almost a $14.00 haircut after the Barron’s cover story called the company overvalued.
Jon C. Ogg
August 11, 2008
Auxilium Diabetes Drug Meets Endpoints, Yet Shares Slide (AUXL)
Auxilium Pharmaceuticals Inc. (NASDAQ: AUXL) has reported that its experimental treatment for Dupuytren’s contracture met its primary endpoint in two Phase III studies. Auxilium plans to submit an application for approval with the Food and Drug Administration in early 2009.
Dupuytren’s contracture is a diabetes-related condition where fingers and/or the palm of the hand thicken and shorten, causing fingers to curve inward. The company noted that this could become the first new first-line treatment option for Dupuytren’s contracture. The company results reported a 77.8% patient response in those treated with Xiaflex, which saw a reduction in joint curvature. The placebo group saw a 14.3% improvement.
The company used 850 patients who were given Xiaflex injections in trials through May 2008. Of the group, 7 serious adverse events possibly related to the drug have been reported and possible side effects were 3 tendon ruptures, 1 ligament injury, and 1 case of a serious blood clot. As far as how that compares to traditional treatments Auxilium noted that the rate of adverse events is comparable to that involved in surgery.
What is interesting is that if you read through the release it all sounds good. But shares are down by close to 10% in pre-market trading. Shares closed at $31.53 Monday and are down at $28.50 in pre-market trading on more than 400,000 shares at 8:20 AM EST. The 52-week trading range is $14.37 to $36.14, and its market cap before today’s drop was about $1.3 Billion.
Jon Ogg
June 3, 2008