|Don't forget about these four stocks with pending news developments and catalysts|
|Monday, 13 September 2010 08:08|
As always, we are chasing several stories and hearing whispers that may be of interest to readers.The first of these involves Access Pharmaceuticals, Inc. (OTC:ACCP). The word on the street is that the company is getting ready to announce it's first commercial order for MuGard. The order should bring the company close to $1 million in revenue and could come as part of that exclusive specialty distribution deal that Access signed with BioScrip (OTC:BIOS) in July. Access has been given comprehensive access to BioScrip's nationwide distribution platform, which includes extensive physician relationships, over 100 specialty pharmacies, a mail distribution network and more. If the rumor is true, this will be a significant step for Access, because it will mark a new phase for the company.
Patients who have been waiting for this FDA-approved oral wound rinse will be the real winners, of course. MuGuard has been used by many very effectively for the management of oral mucositis, a painful inflammation and ulceration of the mucous membranes which is a debilitating side effect of radiation treatment and chemotherapy. Zacks Investment Research recently issued an update summarizing some of the recent positive developments at Access and they reiterated an 'Outperform' rating with a six-twelve month price target of $8.00. The stock closed Monday's session at $1.95 +0.02 (1.04%) and charts show a 52-week high of $3.70.
Don't forget that long-awaited good news may be coming for Cleveland BioLabs (NasdaqCM: CBLI). As you may remember, the company has been developing and getting ready to commercialize their products for human protection against radiation- which have applications not only in national defense, but in oncology as well. Those two big shots on goal with little or no competition make CBLI one of my favorite plays. The company is waiting for word on some significant government funding and as they pointed out during yesterday's presentation at the Rodman & Renshaw 12th Annual Healthcare Conference, throughout its funding history, the company has raised nearly as much money from capital markets ($56 million) as it has through federal grants and contracts ($50 million).
When the stock was at $3.61 last month, we told our readers that during the first quarter of this year, the company had submitted additional paperwork about Protectan CBLB502 (a radioprotectant molecule with multiple medical and defense applications for reducing injury from acute stresses, such as radiation and chemotherapy) to the U.S. Government's Department of Defense. The stock spiked up to $4.50 before closing at $4.36 yesterday and the price rise will likely continue because Wall Street believes that the company has the best chance of not only getting significant funding via that the DoD initiative, but that CBLI will get an even bigger order from the Biomedical Advanced Research and Development Authority (BARDA) who is reportedly interested in acquiring doses of the drug for the Strategic National Stockpile. In addition, the stock could rise significantly higher due to subsequent developments and orders coming in from foreign government contracts. In fact, Israel is said to be waiting in line behind the U.S. If those catalysts start to take place, you will see this stock starting to trade at much higher levels going forward.
The stock reminds me of Human Genome Sciences' (NASDAQ:HGSI), which I covered before their big price spike in the fall of 2009- while it was trading at only $3.03. You can see CBLI's Rodman & Renshaw conference presentation here: http://wsw.com/webcast/rrshq18/cbli/
Remember also that Chelsea Therapeutics (Nasdaq: CHTP) is scheduled to present at the Rodman & Renshaw 12th Annual Healthcare Conference this Wednesday at 11:40 AM ET. As we first told our subscribers in late August when the stock was trading at around $3.50, investors are anxiously awaiting news from CHTP’s pivotal Phase 3 trial with results due sometime this month. CHTP is currently completing work on Study 301 for the treatment of symptomatic, neurogenic orthostatic hypotension (NOH). Their latest PR regarding the study points to a results announcement sometime this month. Remember also that Chelsea has said that Study 302 would have received FDA approval, if they'd been using the new endpoints. This reaffirms our belief that Study 301 will show significant results in NOH. The stock closed at $ 4.04 following yesterday's session after spiking as high as $4.26 following our initial report.
Bio penny players, are reminded that Inergetics (OTC:NRTI), the micro-cap developer of multiple products for the Clinical Nutrition and Sports Supplement Markets is inches away from reaching kick starting their full commercialization stage.
A couple of weeks ago, John Bello, the entrepreneur and marketer best known for creating and building the SoBe brand of beverages had reached out and reportedly inquired about in acquiring part of NRTI. According to my sources, Bello and his institutional banking reps were told that "leadership at Inergetics did not think that it was appropriate to schedule a meeting for further discussions at this time." I think this was a brilliant move by the management team- led by Mark Mirken- who helped take Turbo Chef Technologies (NASDAQ:OVEN) from $.26 to over $26 per share. Why? Because any offer that Bello would have made for the stock at this point would be too low. The CEO has already gone on record saying they intend to capture 2% of the Nutritional Supplement Market by 2012, so instead, the management group was able to take Bello's interest and spin it into additional financing for order fulfillment and great credit terms from suppliers.
As I am told, the first big batch of the product is getting ready to roll out of the manufacturing facility within the next few days. That is very important because the company has several key distributors and big clients (including the GNC and the U.S. Military) waiting to taste test that first batch and place orders. As a matter of fact, I think the government/military vertical for the product(s) is going to be much bigger than anyone anticipated. Remember, the company's Surgex® and Resurgex™ nutritional formulation product lines have been proven to help athletes (think soldiers) bounce back quickly from the oxidative stress caused by physical workouts. We've heard that several of the nation's military academies are ready to jump on the clinically validated product's bandwagon with purchase orders.
Inergetics has now spent close to $26 million getting their innovative product line ready for commercialization and are reportedly expecting somewhere between $1-$4 million in orders by the end of this year. Those figures are expected to grow exponentially in 2011, according to sources familiar with corporate marketing plans and partnerships. Joe Theisman, who just signed on as the spokesman for the company's product is a long time share holder in the company and will be hosting the infomercials which are said to be going into production in the weeks ahead as well.
Let's not forget that NRTI signed a three year exclusive distributor relationship with Windmill Health Products- the leading marketer and distributor of Lifestyle nutritional products worldwide. Yes, the stock has all of that going for it, but it can still be had for fractions of a penny per share in these choppy markets.
Disclosure: Long CBLI, CHTP and NRTI