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
Compugen’s (CGEN) Second Home Run
After a huge run-up last Thursday, Compugen (NASDAQ:CGEN) is up over 35% today to $5.86, a 52-week high.
Compugen disclosed discovery and experimental validation of CGEN-671, a new drug target for multiple epithelial tumors. CGEN-671 is a membrane splice variant of CD55, a known drug target for gastric cancer for which monoclonal antibody (mAb) therapeutics are in clinical development by others. The potential application of CGEN-671 as a drug target was initially predicted in silico by Compugen through the use of its Monoclonal Antibody Targets Discovery Platform; the predicted molecule was then validated experimentally in multiple epithelial tumors. Epithelial tumors, also referred to as carcinomas, account for approximately 85% of all cancers, including the ten most prevalent cancers in the western world, such as breast, colorectal, lung, ovary, prostate and skin. Compugen has filed patent applications covering this novel splice variant and its various therapeutic and diagnostic utilities.
Initial experimental studies confirmed the existence of the predicted CGEN-671 transcript (mRNA) and demonstrated that, compared with normal tissue samples, it is highly expressed in colon carcinoma tissue. Furthermore, in these mRNA experiments, CGEN-671’s expression level in various healthy tissues was up to 200 times lower than the expression level of the previously known cancer target CD55, suggesting that the Compugen discovered splice variant should be a superior drug target candidate for cancer treatment. In addition, the in silico prediction of CGEN-671 identified a unique sequence present in CGEN-671’s extracellular domain that is not present in CD55. This sequence allows for the development of antibodies that specifically bind to CGEN-671 and do not recognize CD55.
Last week, the company announced a venture with Pfizer (NYSE:PFE)
Douglas A. McIntyre
Compugen gets funding the day after stock-moving announcement (CGEN)
Compugen Ltd. (Nasdaq: CGEN) announced this morning that it it will receive government grants from Israel of about $400,000 to support two of its novel peptides and proteins this year, in addition to $500,000 in grants announced earlier this month for ongoing programs.
While the grant is indeed small, it’s a meaningful benefit to Compugen, which had only about $9 million in cash as of its last filing.
This new funding will support animal testing of some of its proteins, including the testing of its FPRL1 G protein-coupled receptor as a potential anti-inflammatory. It will help fund the study of two peptides that work with the receptor that the company may license from Merck-Serono (NYSE: MRK).
Compugen shares surged yesterday after the company took small steps towards addressing large potential markets. Read previous post for details.
Compugen takes small step toward large markets (CGEN)
Compugen Ltd (CGEN) this morning announced positive therapeutic effects of a novel peptide in an animal model of treating inflammatory bowel disease – a small step toward two large potential markets.
Shares are up more than 25% on strong early volume.
The company said that in a recently completed study of TNBS-induced colitis, the administration of CGEN-25007 protected mice from the effects of lethal colitis. Study data showed an increase in survival rate and reversal of weight loss.
The company says the results suggest that its CGEN-25007 peptide could have a potential therapeutic utility to treat IBD and other autoimmune diseases with a strong inflammatory component, such as rheumatoid arthritis.
Both IBD are large addressable markets; Rheumatoid arthritis affects as much as 1% of the adult population worldwide. — Mike Tarsala
Biotech Winners & Losers
It doesn’t matter if it’s a bull market or a bear market for biotechs, well at at least for the most part. Every day there are select winners and losers. A bull market won’t save a one-hope wonder that fails Phase III trials, and a bear market won’t keep down the company that ends up with the new budding cancer cure. He are some from today:
BIOTECH WINNERS
- SGX PHARMACEUTICALS (SGXP) +125.55%
- BIOHEART, INC. (BHRT) +11.51%
- COMPUGEN LTD (CGEN) +9.43%
- DARA BIOSCIENCES (DARA) +8.03%
- SUNESIS PHARMACEUTIC (SNSS) +7.68%
- CHELSEA THERAPEUTICS (CHTP) +7.00%
- PLURISTEM THERAPEUTC (PSTI) +6.84%
- INCYTE CORP (INCY) +6.44%
BIOTECH LOSERS
- NEUROBIOLGL TECH INC (NTII) -19.23%
- HEMISPHERX BIOPHARMA (HEB) -13.08%
- REXAHN PHARMACEUTICL (RNN) -13.04%
- HESKA CORPORATION (HSKA) -9.76%
- IDENIX PHARMACEUT (IDIX) -8.96%
Jon Ogg
July 9, 2008
Latest from 247Wallst.com- No Signs Of Intelligent Life At Boston Scientific
- More Dividend Hikes, More on the Way (PEP, KO, DPS, QCOM, AMAT, SBUX, CSCO, AAPL, GPS, KMB)
- The Worst Apple App Of The Day: Starbucks
- Top 10 Analyst Upgrades and Downgrades (ARMH, DWA, FNSR, GPRE, HAS, ICE, JDSU, LM, RSH, WMT)
- Today’s Best Market Rumors (3/15/2010)
- Latest from VSInvestor
