Aveo Pharmaceuticals AVEO Stock News

Aveo Pharmaceuticals AVEO Stock NewsAveo Pharmaceuticals, Inc. (NASDAQ: AVEO)

Aveo Pharmaceuticals stock is soaring in the market recently. I started to notice the uptrend in the stock on April 16th; so naturally, I decided to look into why we’re seeing the climb and how long it’s likely to last. Well, I’ve got news for you…if you’re looking for a piece of fundamental data that kicked off the climb, you won’t find one! It’s simply not there.

AVEO Stock Climb Is Purely Excitement Based

While these kinds of things happen in the market often, I always find it interesting when I see it. The reality is that AVEO didn’t release clinical data, hasn’t received an FDA approval, didn’t release a report of any kind, and really no news at all happened. However, for some reason, the stock is up. So, what’s the reason? Investor excitement!

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For the last few days, the stock has been trading strong on high volume. That’s about it! As day traders and investors started to see the upward price movement, they decided that they wanted to get a piece of the pie; picking up a few shares of their own. As a result, the price climbed higher and a pattern started to make itself clear. With the massive gains they’re seeing, investors simply keep pushing the price higher!

Is The Aveo Pharmaceuticals Climb Going To Continue?

In the short term, chances are that we will continue to see positive news from the stock. However, unwarranted climbs like this do generate their own form of risk, and we’re seeing it in AVEO. The reality is that without any fundamental reasoning for the climb, there will eventually be a correction; and for those still in the trade, there will be losses. Think about it, at this point, the stock is overbought and continuing to climb higher.

That being said, I’m no psychic; I can’t tell you exactly when investors will get spooked by the unwarranted growth and the overbought status. So, I can’t tell you when the big drop is going to happen. However, I can say that it’s exactly what the stock is gearing up for.

What Do You Think?

Do you think AVEO will continue to climb? Why or why not? Let us know in the comments below!

Ariad Pharmaceuticals Stock News ARIA

Ariad Pharmaceuticals Stock News ARIAAriad Pharmaceuticals, Inc. (NASDAQ: ARIA)

Ariad Pharmaceuticals stock climbed yesterday following the company’s announcement of preclinical data from 2 studies at the American Association for Cancer Research Annual Meeting 2015. The data was provided through two different presentations…

ARIA Preclinical Data Presentations

Oral Presentation on Brigatnib Discovery

This demonstration described the design and chemical structure of brigatinib. This data was discovered using a structure-based drug design platform that was developed by Ariad Pharmaceuticals. The scientists at ARIA advanced a series of compounds culminating in the identification of brigatnib. As a result of the unique chemical-design features seen in brigatnib, the drug has represented a much greater potency than the current industry leader, crizotinib, against ALK+ NSCLC cell lines and has been proven to be broadly active against crizotinib-resistant mutants in preclinical models.

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New Preclinical Data on Brigatinib

This presentation showed that brigatinib has anti-tumor activity against a panel of 17 distinct ALK mutants known to confer resistance to other ALK inhibitors. In a separate study, brigatinib was proven to lower the tumor burden in mice with ALK+ brain tumors compared to the tumors in mice treated with crizotinib. Aside from a reduced tumor burden, survival rates in mice treated with brigatinib was proven to be substantially higher than in those treated with crizotinib.

What We Saw In The Market

As mentioned above, Ariad Pharmaceuticals stock climbed yesterday following the release of this information. After starting the day off at $9.04 per share, the stock climbed to more than $9.27 per share by the closing bell.

What We’re Seeing From ARIA Today

Today there seems to be a bit of a different story as the market is resisting any further growth. Currently (11:55), ARIA is trading at $9.27 after a series of inclines followed by declines have brought the stock to a point of no gain.

What We Can Expect Moving Forward

Moving forward, I’ve got incredibly high hopes for Ariad Pharmaceuticals stock. As seen in the data that was provided yesterday, the company continues to innovate and find ways to make the quality of life for those suffering with devastating ailments better. As more positive results come out from the amazing advances ARIA scientists continue to make in health care, we can only expect long term upward movement from this one!

What Do You Think?

Where do you think ARIA is headed and why? Let us know in the comments below!

MannKind Stock News

MannKind Stock NewsMannKind Corporation (NASDAQ: MNKD)

MannKind stock has gotten a bit of a bad rep in the stock market recently. Over the past 2 months, the company has struggled in the market; driving the price of the stock down. Today, we’ll take a look at why the stock is falling and why I expect to see long run increases…

Why MannKind Stock Is Struggling

The drop can be traced back to the beginning of last month. An analyst from Goldman Sachs made the decision to downgrade the stock based on the following…

  • Afrezza – The primary reason for the downgrade was the fact that Afrezza, MannKind’s new inhaled insulin had a bit of a rough start in the market. The analyst claims that the launch didn’t meat Goldman Sachs expectations and reduced expectations for long run sales of the drug.
  • Other Sales – The analyst also mentioned that sales of other MNKD products didn’t meet expectations.
  • Price Pressure – Finally, the analyst mentioned that price pressure in the medical industry is most likely going to bleed into the diabetes market; harming profitability along the way.

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Why I Disagree Entirely!

First off, I’d like to note that investors should do their own research. They shouldn’t trust one analysts word when making investment decisions. With that said, here’s why I completely disagree with the Goldman Sachs analyst…

  • Afrezza – I can agree that when the downgrade happened, sales of Afrezza were a bit low. However, what many people seem to be leaving out is the fact that the downgrade came 3 weeks after the product launched. In the medical industry, it takes more than 3 weeks to show impressive sales in new treatments. There has to be time for physician feedback and word of mouth to spread. All in all, I think Afrezza looks great. Just look at what patients are saying in social media about it. Not to mention, since the downgrade, we’ve seen tons of positive feedback from physicians about the drug.
  • Other Sales – On this particular case, the analyst hit the nail on the head. MannKind sales of other medications are declining; but I don’t think that’s a major issue as Afrezza should lighten the blow.
  • Price Pressure – This one really upsets me because it’s not founded in any truth at all. It’s hog wash my friends, but to give a little back story…Gilead Sciences has received a bit of pressure to reduce the cost of its hepatitis C treatments. However, comparing hepatitis C costs to diabetes costs is like comparing Apples to cars; no not oranges, cars! It just doesn’t make sense.

What We Can Expect From MNKD Moving Forward

Moving forward, I think we will still see a bit of downward movement unfortunately. However, when Afrezza reports start to come out showing how well it’s actually going, I’m expecting to see the value of the stock climb. So, in the short term, get ready for price volatility; but in the long run, get ready for gains!

What Do You Think?

Where do you think MNKD is headed and why? Let us know in the comments below!

Enzon Phamraceuticals Stock News ENZN

Enzon Phamraceuticals Stock News ENZNEnzon Pharmaceuticals Inc (NASDAQ: ENZN)

Enzon Pharmaceuticals stock had an interesting week last week. After strong gains early on, the stock fell hard; giving up every bit of what it had gained. However, ENZN is back on the uptrend. The only question now is…will this one last?

Why Last Week’s Crash Happened

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Last week, ENZN issued a statement to the trading world stating that it was in a bullish mood, and mode. However, as pointed out by Bryan Murphy of Small Cap Network, there was a major problem with the strong uptrends. Enzon was overbought! As Mr. Murphy predicted…a sell off ensued.

What We’ve Seen From ENZN This Week

This week, we’re seeing trends from the stock that look a bit different from what we saw last week. Instead of a heavy straight line, ENZN seems to be on a more slow and steady path. Although we did see incredible gains in morning trading today, the stock slowed well before the point of resistance and went on a more stable trend.

Can Enzon Pharmaceuticals Stock Continue Rising?

This time, I think we may be in for more long term growth. The reality is that last week’s gains were the result of an overreaction in the market and investor excitement. Then, as is normal in the market, an overreaction brought the stock below its value. However, things to be correcting and the growth seems to be going on a more sustainable route.

What Do You Think?

Do you think ENZN will continue to rise in value, or will we see a correction take away the gains like we saw last week? Let us know in the comments below!

TEVA Stock News

TEVA Stock NewsTeva Pharmaceutical Industries Ltd (ADR) (NYSE: TEVA)

Mylan Inc (NASDAQ: MYL)

Teva Pharmaceutical Industries is a multinational pharmaceutical giant that focuses on generic and specialized treatments; and they’ve made a big play today. The company wants to acquire Mylan Inc, and is willing to pay a premium for it!

Why TEVA Wants To Acquire MYL

MYL and TEVA are a match made in heaven in TEVA’s eyes. Both companies focus on the same things; but there’s something more important to consider. Mylan and Perrigo Co. PLC (NYSE: PRGO); making the acquisition of the company even more appealing to TEVA.

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The Offer That’s On The Table

Today, Teva Pharmaceutical Industries made their intentions clear when they announced that they had offered Mylan $82 per share in cash and stock for the acquisition of the company. At current market value, that’s a premium of more than 20% and a total value of around $31 billion!

How The Market Reacted To The News

As you can imagine when big news comes out, stocks tend to benefit; and that’s exactly what happened for TEVA and MYL. Here’s what we saw in the market…

  • Mylan Stock – Mylan stock has had an amazing day in the market. After a more than 9% jump in morning trading, we saw a slight correction followed by slow and steady gains. Currently (1:55), MYL is trading at $74.10 per share after a gain of 8.90% so far today.
  • Teva Pharmaceutical Industries Stock – TEVA saw relatively strong gains in morning trading; pushing the value of the stock over 3%. However, after a correction, we saw it fall to a gain of just over 1%. Since we’ve seen slow and steady upward movement. Currently (1:58), TEVA is trading at $64.30 per share after a gain of 1.60% so far today.

What We Can Expect Moving Forward

With such a big offer on the table, it’s going to be hard for MYL to turn it down. With that said, I’m expecting to see slow and steady gains in the short term; followed by a decent increase after the acquisition (if it does come to fruition).

What Do You Think?

Do you think the acquisition is going to come to fruition? Where do you think TEVA and MYL are headed? Let us know in the comments below!

MEI Pharma Logo

MEI Pharma LogoMEI Pharma Inc (NASDAQ: MEIP)

MEI Pharma stock is taking a crushing blow in the market today. Shortly following the open of the day, the stock started to fall dramatically. Since then, there hasn’t been even the slightest recovery. So, as you can imagine, investors are starting to talk about whether or not MEIP can keep the uptrends going. In my opinion, here’s why today’s declines are really nothing to be concerned over.

MEI Pharma Has Seen Dramatic Gains Recently

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In the past month, MEI Pharma stock has seen gains of more than 20%! That’s absolutely massive. A good chunk of these gains have been caused by analysts upgrading their opinions of the stock and changing target prices that we’ve seen over the past few weeks. All in all, no matter how you look at the stock, it’s not hard to spot growth.

MEIP Is Small Cap BioTech

One thing that’s important to remember through today’s decline is that MEI Pharma is a small cap biotech stock. This industry has a tenancy to be incredibly volatile as news, studies, and FDA clearances surface. When we see growth in the market, on the long term scale, we generally are going to see a few points where the value of the growing stock corrects before climbing again. It’s all part of the small-cap biotech investing world. The stock is down more than 5% today, but considering the gains it has seen recently, a small correction is really nothing to be concerned with.

The Long Term Outlook Seems Great

In the long run, I think MEI Pharma still has plenty of room to grow. Sure, short term declines can be scary, but in the world of trading it’s best to check emotions at the door and consider all of the surrounding data. When you look at MEIP from all angles, it’s hard to imagine anything but growth in the long run.

What Do You Think?

Where do you think MEIP is headed and why? Let us know in the comments below!

Novogen stock news NVGN

Novogen stock news NVGNNovogen Limited (ADR) (NASDAQ: NVGN)

After a relatively strong day in the market yesterday, Novogen stock fell hard this morning following an announcement by the company. NVGN will be issuing new shares in a large private placement. Today, we’ll talk about the private placement, why it’s causing the value of the stock to fall, and what we can expect moving forward.

NVGN Announces AU$15.5 Million Private Placement

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Novogen entered into a definitive agreement today with institutional investors in the United States. The agreement entered into states that NVGN will issue approximately 51 million ordinary shares for a gross price of around AU$15.5 million. The placement is expected to close on or around April 24th, 2015. There is also attaching options talked about under the placement; however, these options are subject to shareholder approval.

Why This Is Driving Novogen Stock Value Down

This is a classic case of share dilution. Think of it this way. You’re making a glass of chocolate milk, and didn’t use enough syrup. So, all you taste is milk. Essentially, Novogen is adding more milk to the glass; diluting the chocolate within. As more shares are issued, the value of the company is split into more pieces; ultimately driving the value of each individual share down.

What We’ve Seen So Far Today

As mentioned above, NVGN is hurting in the market today. As soon as the market opened, the stock fell hard; declining from $9.23 to $7.25 per share by 9:30. Since then, we’ve seen very slight upward growth, but nowhere near enough to call it a recovery. Currently (), Novogen is trading at $ per share after a loss of % so far today.

What We Can Expect To See Moving Forward

Share dilution is never fun. We saw GENE struggle with the issue earlier this year; which they haven’t fully recovered from. With that said, I’m not expecting to see much positive news in the short term outlook. However, in the long run, the company seems to be a great investment option. At this point, it’s going to all be about catching the stock at the support level and riding it to the top from there.

What Do You Think?

Where do you think NVGN is headed and why? Let us know in the comments below!

Biocept BIOC Stock News

Biocept BIOC Stock NewsBiocept Inc. (NASDAQ: BIOC)

For the past month, movement in Biocept stock has had investors incredibly excited; and for good reason. In the past 30 days, the stock has grown by more than 37% and seems like it will continue on that path. So, today we’ll look into what Biocept does as a company, what we’ve seen from the stock recently, and what we can expect to see moving forward.

What Is Biocept

Biocept is a cancer diagnostics company. The company develops and commercializes proprietary circulating tumor cell and circulating tumor DNA tests using a standard blood sample.

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Why The Stock Is Climbing

This is where things get relatively interesting. The reason for the climb seems to be excitement based. For the last 30 days, BIOC has for the most part, traded on high volume. However, when you look outside of short term price fluctuations, there’s really not much good news to report

  • Net Income – In their most recent report, BIOC shows that they have underperformed in net income when compared to both the S&P 500 and the BioTech industry. In this report, Biocept showed that their net income decreased by 57%; which is rather significant.
  • Earnings Per Share – Investors have seen a pretty serious decline with regard to EPS in the most recent quarter. In the last report, the company reported EPS of -$3.54 as compared to -$0.55 year over year. While the losses are expected to narrow in the next report, they are still expected to be around -$1.09 per share.
  • Net Cash Flow – While BIOC had $0 net cash flow last year, this year they are down to -$3.22 billion!
  • The Positive – The only big piece of positive news is that Biocept’s revenue growth far exceeds the industry average. While the industry average growth in revenue is 35.1%, year over year, BIOC has seen revenues climb by 294.7%.

Where I Think BIOC Is Headed From Here

While we’re likely to continue seeing climbs in the first place, investors will eventually start to become concerned about falling EPS, net income, and cash flow. For me, this doesn’t seem like a strong long term investment option. However, if you’re a day trader, ride those trends! The massive movement is likely to continue in the short run!

What Do You Think?

Do you think BIOC is likely to continue climbing? Why or why not? Let us know in the comments below!

Arrowhead Research Stock News

Arrowhead Research Stock NewsArrowhead Research Corp (NASDAQ:ARWR)

On April 13, 2015 Arrowhead announced that it was given the go-ahead by the FDA to begin treating patients in the phase 2b Hepatitis B study.  The drug compound being used in the study is known as ARC-520 which is an RNAi drug. RNAi stands for RNA interference and these types of drugs are specifically built to knock down the genes of particular diseases. In the case of this study ARC-520 was created to knock down the genes of the Hepatitis B virus. The good news is that the company can begin to dose these patients in the phase 2b trial but the downside is that it must do so in lower doses. The FDA is only allowing multi doses of up to 1 mg/kg. The company will begin recruiting patients by next month after it has completed setting up the trial sites with the clinical principal investigators.

This phase 2b study starting will only be run in the United States, but Arrowhead is in the process of reaching out to other regulatory authorities to begin testing ARC-520 in other countries as well. This trial will be known as the “Heparc-2004” trial and will enroll a total of 12 patients only. This trial seems small but considering the company will be combining these test results with other results from other countries it should be more than enough to determine efficacy at this stage of the game. Although if Arrowhead expects to appease the FDA in possible phase 3 clinical trials it will have to do so with a larger patient population. I say Possible phase 3 trial because the company will have to first prove efficacy in the current phase 2 clinical trials in addition with adding higher doses as well.

The primary endpoint of this phase 2b trial will be a decline of the Hepatitis B surface antigens — HBsAg — comparing ARC-520 to a placebo compound. Both the ARC-520 group and placebo group will also have patients maintained on other therapies being either entecavir or tenofovir. The secondary endpoint will evaluate the safety and tolerability of dosing with 1 mg/kg ARC-520. Showing efficacy in this trial is important of course, but more importantly this trial needs to show that multi-doses of 1 mg/kg of ARC-520 are safe. If the company can prove that this trial is safe along with other data from other non-clinical trials– trials in animals — using higher doses of ARC-520 then the company can sit down with the FDA to discuss higher dosing options.

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Previously Arrowhead sent the FDA an IND to begin a phase 2b trial of ARC-520 using higher doses 2 mg/kg and 4 mg/kg respectively. Although the FDA wasn’t satisfied with the safety data they received and asked Arrowhead to do starter trials in multi-doses to prove that the company’s drug is safe in humans. You can’t blame the FDA here because they are just trying to protect the patients in these studies. The company’s RNAi drug uses dynamic polyconjugates which are non-lipid forms of delivery used to deliver siRNA molecules to cells. The problem is that the DPC platform from the company mimics certain characteristics of viruses therefore the company will have to prove that their platform is harmless at higher doses. Higher dosing will be necessary to achieve the highest maximum gene-knockdown possible.

Amgen Inc. (NASDAQ:AMGN)

On April 15, 2015 Amgen announced that the FDA had approved their heart-failure drug known as Corlanor — first known as ivabradine. Corlanor is an all oral drug that is made to reduce the amount of hospitalization a patients requires due to worsening heart-failure. The main function of the drug is to stop a patient’s heart rate from becoming unstable causing a stroke or heart attack.

Patients who will use Corlanor are:

  1. Patients on sinus rhythm with a resting heart rate of greater than or equal to 70 beats per minute
  2. Patients who have reached the maximum tolerated doses of beta-blockers
  3. Patients who have stable chronic heart failure

Corlanor to date has shown great efficacy in late-stage clinical trials. So much so that the FDA had granted Corlanor priority review back in August 27, 2014. The priority review program was created by the FDA to expedite drugs that fill an unmet medical need — limited treatment options for fatal diseases. Corlanor being approved was much needed for these patients because this is the first heart-failure drug to be approved in over twelve years.

Amgen states that the cost of heart-failure is estimated to be about $31 billion dollars in the U.S. alone each year. This happens because patients have to be continuously hospitalized for their heart-failure condition. Now that Corlanor is approved it could reduce the amount of hospitalization these patients require in addition to saving the healthcare industry billions of dollars each year.

Amgen ran a large phase 3 trial that recruited approximately 6,500 patients who either received Corlanor or a placebo compound. One thing to note is that both groups of patients also received additional therapies like beta-blockers. This phase 3 trial was known as the “SHIFT” trial which beat on the primary endpoint of the study. The primary endpoint of this study was to reduce patient hospitalization or cardiovascular death for worsening heart failure. Amgen was prepared to launch their newly approved heart-failure drug before approval and now expects that the drug will be available in the coming days.

Athersys (NASDAQ:ATHX) & Pfizer, Inc. (NYSE:PFE)

Shares of Athersys fell as much as 50% on April 17, 2015 when the company had announced that its Multistem treatment failed to produce positive efficacy in patients with stroke. The trial failed to meet on both the primary and secondary endpoints which caused a huge panic by investors to dump all of their shares. The phase 2 trial had enrolled approximately 126 patients who either took doses of Multistem cell therapy or a placebo compound. The primary endpoint of the study looked for safety and global stroke recovery at day 90.

Multistem proved to be safe but failed to improve global stroke recovery at day 90 compared to the placebo compound. The secondary endpoint was looking for recovery and dysfunction including biomarkers associated with subject condition and recovery. Unfortunately Athersys failed to pass this secondary endpoint as well which is a shame for these patients who desperately need an improved therapy regimen. Many investors believe that the company still has hope because the multistem cell therapy showed a better improvement over placebo earlier in treatment around the 24 to 36 hour period post stroke.

The problem with this theory though is that its all based on hope. The FDA has to disregard the fact that the trial failed to meet on both the primary endpoint and the secondary endpoint but somehow allow the company to continue to a late-stage clinical trial. I feel many are too optimistic because the FDA is a pretty stringent regulatory authority and they don’t allow trials on a whim. Maybe they might allow Athersys another trial on a subset of patients that might benefit or maybe they will decide it is not worth tackling.

At the end of the day nobody wanted to see Athersys fail the phase 2 trial because the stroke indication is a huge unmet medical need but the FDA has to be logical about interpreting the results. I could see the FDA being more lenient if Multistem failed the primary endpoint of the trial but then did well on the secondary endpoint. Then the FDA could proclaim partial efficacy which should be viable enough for further clinical exploration. We will have to wait and find out how this plays out with the FDA but in addition to this Athersys has another problem it has to worry about.

That problem is that the company’s partner Chugai, which is a Japanese pharmaceutical company, paid Athersys $10 million dollars for the rights of Multistem use in Japan. Now all eyes will be on Chugai as it determines if it should keep the rights to the Multistem therapy or outright dump it. I can’t say one way or another if Chugai will maintain rights for Multistem in Japan but if it drops the program that will spell even more trouble for shares of Athersys.

There wasn’t a huge chance of success for the stroke trial anyways. One clue for investors would have been when Multistem also failed a previous phase 2 trial in patients with Ulcerative Colitis. This trial also tested Multistem therapy against a placebo compound. This trial failed as well to meet the primary endpoint, which was to show a statistically significant reduction in severity of the disease as well as lower rectal bleeding in an 8-week period. Multistem failed to produce efficacious results better than placebo. This prior phase 2 trial should have been a hint on how well the stroke trial was going to come out. I would possibly day trade shares of Athersys if a good opportunity comes up but I wouldn’t currently invest in the company as there are too many risks for the reward to be worth it.

AbbVie ABBV stock news

AbbVie ABBV stock newsApril is more than half way over. However, the most exciting part of the month for many is soon to come! As we move into earnings season, big names in health care are getting set to release their reports. Below are a few earnings reports that I’ll be watching closely and what I expect to see!

AbbVie, Inc. (NYSE: ABBV)

Earnings Report Date – April 23rd

AbbVie is expected to have an outstanding first quarter. Analysts are expecting to see an increase in the company sales of 10% and an increase in net earnings of around 17%. Much of the gains are expected to come from AbbVie’s new drug Humira; which should grow in sales by around 15%. If everything goes as planned, we’re going to see strong uptrends from this one on the 23rd. So, keep your eyes peeled.

Gilead Sciences, Inc. (NASDAQ: GILD)

Earnings Report Date – April 28th

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I wrote in detail about what I’m expecting to see from the GILD earnings report this quarter. To read the post, click here! In short, I’m expecting to see spectacular gains from Gilead Sciences when they release their report. Of the past 8 earnings reports, the company has surpassed expectations 7 times. With a strong hold on the hepatitis C and HIV markets, I’m expecting to see revenue beat the analyst expectations of around $6.8 billion for the quarter.

Pfizer (NYSE: PFE)

Earnings Report Date – April 28th

Pfizer is expected to have a relatively good earnings report as well. Consensus estimates put EPS around $0.50. Knowing that the company beat earnings expectations last quarter and that signs are pointing toward positive news this quarter, I’m expecting to see big trends from this one on the 28th as well.

Merck & Co., Inc. (NYSE: MRK)

Earnings Report Date – April 28th

Merck & Co. is expected to report an EPS around $0.77 per share. The consensus estimates are down from last quarter’s earnings of $0.87 per share, but it will still be well worth watching for the report as strong trends should follow.

What Do You Think?

What are you expecting from the earnings reports listed above? Let us know in the comments below!

Thought Leader Discussions

Gevo, Inc. GEVO Stock News

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Gevo, Inc. (NASDAQ: GEVO) Before we get into this interview, I'd like to extend a special thanks to my friend Joey who both set up the...