BST Position Update – August 31, 2015

| August 31, 2015

BST Position Update

. . . . Macrocure (NASDAQ: $MCUR) – Sell

MCUR recently announced that their Phase 3 clinical study (MC-105) for venous leg ulcers (VLU) is not expected to meet its primary endpoint.

Needless to say, that’s a major disappointment given the data they already had going into this clinical trial.  The company is scrambling to right the ship.  But this was MCUR’s only catalyst with the potential to spark the type of rally we wanted in these shares.

I hoped we would see these shares bounce back after the initial knee jerk reaction.  But investor sentiment has taken a turn for the worse at the wrong time for MCUR to bounce back.

It’s time to sell MCUR to conserve capital.  There’s no doubt about it, these types of trades are disappointing… but they’re going to happen from time to time when speculating in clinical stage biotech stocks.

Don’t let your emotions get the best of you when this happens.  Sell this stock and move on to better opportunities.

. . . . Celldex Therapeutics (NASDAQ: $CLDX) – Buy

CLDX gave an update on the FDA approval of Retinga when the reported earnings this month.  As you’ll recall, Retinga was granted Breakthrough Therapy Designation for the treatment of adult patients with EGFRvIII-positive glioblastomabre by the FDA.

Now management believes the FDA is unwilling to review the vaccine on an accelerated basis.  The treatment will still be reviewed when the trial is completed in 2016.

It’s frustrating to see the FDA yank the football away just before CLDX kicks it… but CLDX still has the opportunity to deliver a major breakthrough with Retinga.

This pullback is a great buying opportunity to establish or build on your existing position.

. . . . Verastem (NASDAQ: $VSTM) – Buy

VSTM sold off after a report that two people in one of their clinical tests had died.  That alarmed some investors… but not me, and you shouldn’t be either.

Don’t forget that they are treating very advanced lung cancer.  These people have had between three and eight other therapies that didn’t stop this cancer.  In fact, some of the patients died between screening and receiving the first dose of VS-6063.

This trial is still on track.  Use this pullback as an opportunity to buy or build on your existing position.

. . . . Keryx Biopharmaceuticals (NASDAQ: $KERX) – Sell

KERX has run into a big problem… they aren’t selling as much of their lead drug Auryxia.  Doctors aren’t using it to treat their patients with CKD.

That’s unlikely to change given the steep price tag and alternatives.

What’s more, this stock has turned into a battleground stock.  There are large groups of bulls and bears that like or hate this stock.

It’s time to cut this stock loose given the recent weakness in sales and diminished outlook.  Sell KERX now.

. . . . Kamada (NASDAQ: $KMDA) – Buy

KMDA had a strong but uneventful 2nd quarter.

I really like this biotech stock despite the lackluster performance.  The company is generating revenue and they have a pipeline of drugs with the potential to catapult the stock higher.

You can still pick up shares of KMDA at a great price.  Buy KMDA or add to your current position.

Action To Take

  • Sell MCUR
  • Sell KERX

Category: BST Update

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