|Healthcare Review: Synthetic Biologics, Herbalife, Cynosure, Targacept, Galectin Therapeutics|
|By Staff and Wire Reports|
|Tuesday, 29 July 2014 15:01|
The biotech sector's up move notwithstanding, nano cap Synthetic Biologics ($SYN) pops on a 3x surge in volume on no apparent news. The stock is trying to recover from its late April plunge after it reported results from a Phase 2 clinical trial evaluating Trimesta (oral estriol) as an adjunctive treatment for relapse-remitting multiple sclerosis. The decrease in annualized relapse rate was statistically significant at 12 months but not at 24 months. The stock quickly sold off, dropping 60% from its April 28 close of $2.91 to a low of $1.16 on May 14.
Herbalife ($HLF) CEO Michael Johnson spent a lot of time emphasizing the health benefits of the company's products, specifically the obesity-fighting benefits. He said that focusing on "wellness" and "fitness" will be the growth drivers going forward. It has invigorated the U.K. market, for example, by attracting a younger demographic into Nutrition Clubs.
Cynosure ($CYNO) Q2 results: Revenues: $72.6M (+44.9%); Operating Expenses: $34.3M (-19.1%); Operating Income: $6.4M (+143.7%); Net Income: $4.6M (+151.1%); EPS: $0.20 (+137.0%); Quick Assets: $102.3M (-15.0%).
Shares of Targacept (NASDAQ:TRGT) are down 24% premarket on modest volume. Yesterday, the company announced that it was pulling out of a development program for bladder cancer after its drug candidate, TC-5214 failed to achieve one of its primary endpoints in a Phase 2b clinical trial.
Shares of Galectin Therapeutics (NASDAQ:GALT) crater 46% premarket on robust volume in response to the company's webcast this morning. It was presenting data for its galactin inhibitor, GR-MD-02, as a treatment for fatty liver disease (NASH). Apparently, Slide 20 shows data that it has no effect on Galectin 3.