Healthcare Review: Questcor Pharmaceuticals, BioTelemetry, Unilife, Oculus Innovative Sciences, CytRx Print E-mail
By Staff and Wire Reports   
Wednesday, 04 December 2013 16:36
U.S. stocks fell back on Wednesday after a brief rebound while Treasury yields edged higher as strong data on U.S. private-sector jobs growth and home sales raised expectations that the Federal Reserve will roll back its stimulus sooner than later. The to-and-fro of when the Fed will begin to scale back its monthly bond-buying of $85 billion has dominated market headlines for months. This week's U.S. data run, ending in Friday's non-farm payrolls for November, may tip the balance yet again. Polls of analysts and traders still point firmly to the U.S. central bank holding fire until March. But some stronger data has reheated speculation the Fed could move earlier, and that boosted U.S. Treasury yields, with the 10-year benchmark yield rising to 2.85 percent on Wednesday, the highest since mid-September.

Questcor Pharmaceuticals ($QCOR) is weaker on the session on the heels of (another) negative Citron Research piece. Citron says it plans to release "a series of articles" about the company "over the coming months," but this particular piece relates to the issue of the FTC, Acthar, and Synacthen (for background on this, see here).Ultimately, Citron says the "smoking gun" in terms of whether QCOR's Synacthen acquisition is anti-competitive is a study allegedly cited by the company last year when it was "ramping up its nephrology sales initiative." "The referenced study for Nephritic Syndrome specifically stated that Synacthen — not Acthar — was the drug used in the trial. So at that time, QCOR was justifying Acthar's use for Nephrotic conditions specifically because it was a correlate to Synacthen," Citron claims.

BioTelemetry ($BEAT) slides on more than nine times its 10-day average volume. The move looks to be attributable to competitor LifeWatch AG, which today warned that a proposed 13.7% cut in CMS reimbursement for ACT services could dent revenue by ~$4M in FY14.

Unilife ($UNIS) trades lower out of the gate, giving back some of the gains the shares logged Tuesday on the heels of the Novartis deal. TheStreetSweeper's Sonya Colberg is out today with the "Top 10 Reasons" to be bearish on the stock. The full report is available here, but suffice it to say Colberg raises some familiar concerns. Here's an excerpt: "Investors shouldn't read into UNIS press releases that upcoming large revenue streams will necessarily occur. The PRs tend to list minimum volume purchases of UNIS syringes. These minimums are only to preserve exclusivity. No one is obligated to buy a certain volume." (emphasis in original)Also out with a bearish take is SA contributor Kerrisdale Capital Management who says "vague supply agreements" are one factor that suggests a "75% overvaluation."

Oculus Innovative Sciences ($OCLS) more than doubles, rising 155%.The company announced a scar management 501(k) clearance for HydroGel. Partner Quinnova Pharmaceuticals is planning a Q2 2014 launch. OCLS also says it is "working with its international distributors and partners to bring this new scar product to patients throughout the globe."

CytRx ($CYTR) trades 6% higher action. Investors seem pleased with Tuesday's presentation at the LD MICRO Main Event Conference in L.A. The company discussed aldoxorubicin, reviewed some data from on-going Phase 2 trials, and talked a bit about the upcoming Phase 3 study (Q1 2014 is planned start).CYTR also presented a timeline, outlining "numerous upcoming catalysts."




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