Today In Biotech: XOMA Corp (XOMA), Synergy Pharmaceuticals (SGYP), MannKind Corporation (MNKD), Cigna (CI)


XOMA Stock Starts To Recover


XOMA had an incredibly rough day in the market yesterday. After announcing that a recent Phase 3 study missed its primary endpoint, the stock fell dramatically; losing more than 70% in a single trading session. However, today, we’re starting to see good news out of the stock. Currently (12:13), XOMA is trading at $1.05 per share after a gain of 5.00% so far today. However, I wouldn’t look at today’s increase as a reason to invest here. The reality is that throughout the past several years, XOMA has brought experimental medications through the testing process several times; missing primary endpoints in late-stage studies time and time again. Unfortunately, this may just be the study that causes investors to lose faith in their ability as a biotech company. Nonetheless, there’s far too much uncertainty at the moment to get excited about XOMA.

Synergy Pharmaceuticals Should Have Your Attention

Synergy Pharmaceuticals Inc (NASDAQ: SGYP)

I’ve been following SGYP for a few months now and I’ve got to say, I’m glad it showed up on my radar. In June, we saw massive gains as the company released positive Phase 3 results with regard to an experimental drug known as plecanatide. However, as the Greek debt crisis and Chinese market crash took hold, we started to see declines. Nonetheless, the company is getting closer and closer to releasing its data from the final Phase 3 test of plecanatide; and if the history of the experimental drug is any indication, the data is going to be overwhelmingly positive. With that said, I’m expecting the data release to be a catalyst; and getting in now may be a great opportunity for profits!

MannKind Corporation Is A Great Opportunity For Longs

MannKind Corporation (NASDAQ: MNKD)

MannKind Corporation has been one of my favorite stocks to watch over the past several months. The reality is that while bears point to a poor pre-launch of Afrezza and amounting debt that will be maturing mid-next month, I think the bulls are going to be happy they stuck around. I wrote a post in more detail about what to expect. To read it, click here. Nonetheless, I don’t think that the debt is a big issue as there are a couple of ways for MNKD to handle it without share dilution. Also, considering the fact that Afrezza is in pre-launch mode still, I think that bears are going to be shocked as consumer awareness widens and the medication proves to be profitable. With that said, if you’re looking for a strong long term investment, you may want to look at MNKD.

CIGNA Corporation May Be Acquired Very Soon

CIGNA Corporation (NYSE: CI)

According to sources close to the story, Anthem (NYSE: ANTM) is getting close to a deal to acquire CIGNA. The deal, if it goes through, will be worth more than $48 billion; valuing CIGNA shares at $184 each. As a result, CI climbed in the market yesterday and is seeing modest gains today. We may hear news this afternoon that the deal has been solidified. So, keep your eyes and ears open!

Do You Know Of Any Others?

Are there any other stocks in biotech that you would consider to be worth watching? If so, let us know in the comments below!

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Hey, Im Joshua, the founder of CNA Finance. I enjoy following the trends in the market and finding the catalysts that are making the moves. If you want to get in contact with me, leave a comment below or email me at Please keep in mind that I am not an investment advisor and nor is CNA Finance. This is a news and information gathering outlet. We may work directly with some of the companies that we write about. If we have a business relationship with an issuer, we will mention that in the articles. We also have various affiliate relationships with advertisers and may be paid if you sign up for a service that you were referred to through our website.


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