A comment regarding Generex (NASDAQ:GNBT) and some observations about Keryx Biopharmaceuticals (NASDAQ:KERX), Sunesis (NASDAQ:SNSS) and CEL-SCI Corporation (AMEX:CVM):
What do you feel are the challenges to third party reimbursement for both MannKind and Generex? ...Although if I understand correctly, Generex product is supposed to meet or exceed absorbtion vis a vis needles. Is your understanding of the second part of the question the same? Thanks
Vinny's Take: I'm not sure what specifically to comment on regarding your third party reimbursement question, but my business would tell me that Generex and MannKind should both have solid and clear contracts with specific language that outlines exactly what is expected by each company - who gets what and when and who pays for what and when. Should be a no-brainer, but of course if Oral-Lyn is being sold in countries that are - shall we say a little shady - then there is always the black market factor and the third parties will make out a lot better than Generex will I'm sure.
As for the second part of the question, from my understanding Oral-Lyn is just as effective a method of insulin absorption as needles; the real benefit is that the diabetic would no longer have to stick his or herself with a needle - a HUGE quality-of-life improvement, in my opinion.
Peter's Take: I'm looking for GNBT to make some news here shortly. Lots of pending items that investors are waiting to hear about. Don't be surprised to see that stock move.
Disclosure: Vinny is long GNBT.
KERX: Shares of KERX finished the trading day on Tuesday twelve cents higher after a press release announced that a Phase III trial design for Zerenex has been agreed upon with the FDA.
In the PR, Keryx stated that two Phase III Zerenex trials will be launched later this year.
I think we'll see some ups and downs with KERX leading into the launch of the trials- a perfect scenario for buying the dips.
There is quite a bit of hype with KERX, and rightfully so, but remember to keep grounded and understand that nothing is a sure thing in the stock market. Play the dips and spikes accordingly over the next few months in an attempt to bank a profit before the trials are too far along - that's my opinion.
That statement sounds easier said than done, but it's easier to watch a stock continue to rise after you've pulled half your money out to take advantage of a spike than it is to watch it collapse on bad news when your full investment is still in there - in my opinion. If you're already at least even on the investment and the stock drops, it's not as big a killer as it would have been had you not sold into any spikes along the way, at least that's what my experiences have told me.
Disclosure: long KERX.
SNSS: As shares of Sunesis Pharma traded back down to just over the one dollar mark early on in the new year, it offered another buying opportunity to those investors that may have sold into the recent spike to over two dollars after the company announced positive results for two mid-stage Voreloxin trials.
With a partnership always a possibility and Phase III trials probable for later this year, the one dollar price will prove to be a nice (re)entry point, in my opinion.
Disclosure: No positions
Peter's Take: Finally, check out the large insider buys at CVM. They may be an indication they are on the verge of making their long-awaited and highly anticipated announcements:
(see screen shots below courtesy of Vickers Stock Research)
Disclosure: long CVM
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