Did Traders Get SuperGen & Celgene Wrong? (SUPG, CELG)
There are two interesting calls out this morning around SuperGen (NASDAQ: SUPG). As you will recall, it was just under pressure yesterday over Dacogen missed its primary endpoints in trials. SuperGen closed down at $1.75 yesterday on almost 2.8 million shares. SuperGen came close to a 52-week low yesterday as its year-range had been $1.66 to $6.63.
But this morning we have already seen two analyst UPGRADES in the stock. Rodman & Renshaw has raised its old “Market Perform” rating up to a higher “Market Outperform” rating. Susquehanna Financial, another boutique, has raised its prior “Neutral” rating to a higher “Positive” rating.
Keep in mind these are boutique calls and have yet to generate any trades this morning. But shares are indicated higher after a near 15% drop on the bad news. This news was what gave Celgene Corp. (NASDAQ: CELG) such a large pop yesterday. Interestingly enough, Celgene shares are also popping by 1% higher in pre-market trading.
Jon C. Ogg
July 2, 2008
SuperGen’s Pain May Be Celgene’s Gain (SUPG, CELG)
SuperGen (NASDAQ: SUPG) is feeling some pain today after the company reported that its Dacogen missed its primary endpoints of showing a statistically significant advantage on median survival compared to standard care. Supergen said response rates were similar to those in other Dacogen clinical trials. Dacogen is partnered with Eisai and treats bone-marrow disease MDS, The results of this trial conducted by the European Organization for Research and Treatment of Cancer has SUPG down 13% to $1.78 in thin volume pre-market trading.
Interestingly enough, this is being tallied up as a win for Celgene Corporation (NASDAQ: CELG). Its MDS treatment is Vidaza and this is now going to be counted as less competition. Celgene is up over 3% pre-market at $65.95 (9:14 AM EST) on more than 418,000 shares in pre-market trading.
As a reminder, one-time gains at large caps from smaller company woes are frequently forgotten about. For a size comparison, the market cap for SuperGen was close to $118 million and the market cap for Celgene is over $27 Billion.
Jon Ogg
July 1, 2008