BST Position Update: October 23, 2013

| October 23, 2013

October 23, 2013

Position Update

. . . . Prana Biotechnology (NASDAQ: PRAN) – Buy up to $4.40

Prana was just added to the portfolio last week.  This exciting biotech is developing drugs for the treatment of neurological disorders.  It’s leading drug candidate is PBT2, which is in phase 2 testing for Alzheimer’s (IMAGINE) and Huntington diseases (REACH 2HD).

Results from both trials are expected in early 2014.

The stock has pulled back recently from a high of $6.50 set in August to the $4.00 range. The drop is due to the company’s announcement in September that results from the REACH 2HD trial won’t be provided by year’s end as originally expected.

The delay was due to some inconsistencies and transcription errors found during finalization of the trial database.  These types of errors are not uncommon and don’t necessarily mean there was a problem with the trial.  However, the delay appears to have prompted some traders to lock in short term gains.

We see the sharp, short-term decline in share price as a good opportunity to get into the stock ahead of the upcoming trial results.  The stock should begin moving higher as traders once again begin anticipating the results.

And if the results are positive, PRAN should soar!

Take advantage of the recent weakness and add PRAN to your portfolio at a good price. The stock’s a great buy up to $4.40 per share.

. . . . ImmunoCellular Therapeutics (NYSE: IMUC) – Buy up to $3.05

IMUC appears to be starting a new uptrend after drifting sideways for a couple of months. The recent strength is a sign that investors are buying the stock ahead of upcoming trial results.

ImunoCellular is developing ICT-107 for the most common and most lethal form of brain cancer, glioblastoma multiforme (GBM).  The drug is a therapeutic dendritic cell vaccine for use after conventional therapy or in conjunction with chemotherapy.

ICT-107 performed well in a phase 1 trial involving 16 patients with newly diagnosed GBM. In fact, the study results suggest the vaccine may be more effective than the current standard of care.

Here’s the key…

ICT-107 is currently being studied in a phase 2 trial involving 124 patients with newly diagnosed GBM.  And top-line results from this important trial are expected by the end of 2013.

We expect IMUC to continue moving higher ahead of the results.  And if the data are good, this stock should soar in value.

With the shares now trading below our maximum buy price, we’re going to move IMUC from Hold to Buy.  If you don’t own this stock, you may want to grab it now.  IMUC is a good buy up to $3.05 per share.

. . . . Rockwell Medical (NASDAQ: RMTI) – Hold

RMTI continues to move higher in a solid uptrend.

Since our last update, the stock has gained more than 33%.  And with that impressive surge, we’re now sitting on a gain of 210%!

What’s more, RMTI set a new 52-week high yesterday of $13.20.  That print gives us a new peak gain of 232% for the position!

The most recent rally follows positive data from a large, phase 3 safety study of soluble ferric phosphate (now called Triferic™).

The study involved 718 chronic kidney disease patients who are receiving hemodialysis. The results show there were no specific adverse events, anaphylaxis, or hypersensitivity attributable to Triferic™.

In other words, Triferic™ is no different from placebo in terms of safety.

Rockwell’s management team is very pleased with the results and believes they bolster Triferic’s™ market potential.  According to CEO Rob Chioini…

“Triferic’s™ clean safety profile together with its unique mode of action enabling efficient iron delivery and hemoglobin maintenance, while significantly reducing the need for ESA, highlight its potential to be the market-leading iron therapy treatment for CKD-HD patients.(Emphasis added.)

If Triferic does indeed become the market leading iron therapy treatment for CKD-HD patients, it will mean huge profits for Rockwell.  Remember, the US iron therapy market currently stands at $600 million per year while the global market exceeds $1 billion annually.

There’s no question we’re sitting on a huge gain in RMTI.  But we believe this stock can move even higher. Hang on to RMTI for greater gains.

. . . . BioLineRx (NASDAQ: BLRX) – Hold

BLRX is moving higher on good news from the intellectual property front.  The company announced earlier this month that it received a US patent for its new drug, BL-5010.

The drug is being developed for the non-surgical removal of skin lesions.

BioLineRx has already received patents from Europe and Israel on BL-5010.  And the company has applied for a worldwide patent that would provide protection for the drug through 2033.

The US patent is valid until 2022.

A recent phase 1/2 study showed BL-5010 was effective in 96.7% of cases for removal of the target lesion within a month.  The results also showed the drug was well tolerated with no persistent, irreversible adverse effects.

BioLineRx now plans to begin a pivotal CE-mark registration study by year’s end.  If the trial is successful, the company will file for a CE-mark next year.

Thanks to this news, BLRX has bolted higher this month.

The stock hit a new high of $3.09 on October 8th to give us a new peak gain of 84%. And while BLRX has pulled back a bit over the past couple weeks, we’re still sitting on a terrific 65% gain.

The next major catalyst will be top-line results from the phase 2 study of BL-8040.  Those are expected toward the end of 2013.

Continue holding BLRX for more upside.

. . . . Halozyme Therapeutics (NASDAQ: HALO) – Hold

HALO just keeps climbing higher and higher.  The stock hit a new high this week of $12.60 to give us an outstanding 131% peak gain.  And at its current price of $12.14, the stock’s up 122% from our buy price.

Investors are clearly buying the stock ahead of the upcoming catalysts we noted in our last update.

With the shares continuing to move higher in a solid uptrend, we think it best to hold on for higher prices.  Continue holding HALO for bigger gains.

. . . . Array BioPharma (NASDAQ: ARRY) – Hold

We got some good news yesterday on ARRY.

AstraZeneca (NYSE: AZN) said it has initiated a phase 3 trial of selumetinib as a second-line therapy in patients with advanced non-small cell lung cancer.  Array invented and licensed worldwide rights to develop and commercialize selumetinib to AstraZeneca in 2003.

Here’s the thing… initiation of the phase 3 trial triggered a $5 million milestone payment to Array.

What’s more, Array still holds significant economic rights to the drug.  Under its agreement with AstraZeneca, Array is entitled to double-digit royalties on any global sales.  And it stands to receive up to $70 million in additional milestone payments.

ARRY jumped 4.2% yesterday on the news and added another 1.5% today.  The stock’s currently up 29% from our buy price.

Hang on to ARRY for further gains.

. . . . Anacor Pharmaceuticals (NASDAQ: ANAC) – Hold

ANAC’s on fire!

This amazing biotech stock continues to astound investors.  This week it hit a new 52-week high of $14.39 to give us a peak gain of 205%.  And even after a little profit-taking, we’re still up 195% on the position.

What’s going on?

The stock took off on good news from the litigation front.  The company said last Friday that an arbitrator has awarded it $100 million in its dispute with Canadian drug maker, Valeant Pharmaceuticals (NYSE: VRX).

This is a huge legal victory for Anacor.

The two companies were locked in a breach of contract dispute over work Anacor did for Dow Pharmaceutical Services (which is now owned by Valeant) on antifungal drug, Jublia. The drug is a treatment for onchomycosis… just like Anacor’s tavabarole.

As a result, ANAC surged more than 28% on the news.

But that’s not all the good news.  Earlier this month, the FDA accepted Anacor’s New Drug Application for tavabarole.  A decision on the drug is expected in July 2014.

There’s no question we’re sitting on a huge profit in ANAC.  But with the stock continuing to move higher, we think it best to tag along for the ride.  Continue holding ANAC for more upside.

. . . . Nymox Pharmaceutical (NASDAQ: NYMX) – Hold

NYMX is trending nicely higher.  The stock’s up 25% since hitting a low of $6.00 per share in late September.  And we’re up 18% as I write from our initial buy price.

Investors are driving the stock higher in anticipation of positive results from the phase 2 trial of NX-1207.

Nymox reported this week that enrollment in the trial is nearing completion with over 80% of patients enrolled.  This is exciting news as top-line results are expected to be available 2 months after enrollment is complete.

Based on this time-frame, we should have the results in the first quarter of 2014.

With the highly anticipated trial results coming soon, we wouldn’t be surprised to see NYMX continue moving higher.  As such, we recommend you hang on to your shares.

Action To Take

  • Move ImmunoCellular Therapeutics (NYSE: IMUC) from Hold to Buy with a maximum buy price of $3.05 per share.


Category: BST Update

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