Healthcare and markets shaky, but investors are placing more bets on emerging companies Print E-mail
By Staff and Wire Reports   
Thursday, 25 August 2011 12:25

Biotech tradingInvestor interest in emerging markets has grown and analysts say more hedge funds are investing in emerging markets as a way to make money. But recent market volatility has also weighed on emerging market assets says a report from Hedge Fund Research. Total capital invested in emerging-market hedge funds increased by $1.4 billion in the second quarter, bringing total assets invested in these funds to a record $123 billion.

All eyes are now on Jackson Hole, Wyoming for Fed chief Ben Bernanke's speech on Friday. Bernanke's words will be closely monitored for hints of a fresh round of quantitative easing, which some have speculated could be necessary to kick-start growth. The Fed chief is likely to use his speech to acknowledge disappointment over the pace of the recovery and explain how the Fed will tackle sluggish growth.

Investment appetite for gold has cooled as speculation grows over whether or not the Federal Reserve will signal a further round of U.S. monetary easing. Markets have been sensitive to developments in Europe, given the area's persisting sovereign debt crisis and concerns about European banks' stability.

In the healthcare sector, shares of California based Cutera, Inc. (Nasdaq:CUTR) rose in early trading. The company is a leading provider of laser and other light-based aesthetic systems for practitioners worldwide, and a recent earning report filed by the firm indicated that second quarter 2011 revenue was $14.9 million, or 22% higher, when compared to $12.2 million in the same period last year. Net loss for the second quarter of 2011 was $2.5 million or $0.18 per diluted share, compared to a net loss of $3.8 million or $0.28 per diluted share.

Shares of Vanda Pharmaceuticals Inc (Nasdaq:VNDA) also traded higher by $0.20, pushing the share price to $5.53 in early trading. Stock volume in Vanda Pharmaceuticals Inc has returned as the stock continues to recover after they saw a 52-week high of $10.32. Current prices see shares trading -46% lower, but attempting to bounce off 52-week lows on low volume. Vanda Pharmaceuticals Inc. is a biopharmaceutical company focused on the development and commercialization of products for central nervous system disorders. In recent weeks, the company has announced various exclusive license agreements to export Fanapt™ (iloperidone); a  medications for schizophrenia known as an atypical antipsychotic. The term "atypical" refers to the different mechanisms of action of second-generation antipsychotics.

Shares of Sanuwave Healthcare (OTCBB:SNWV) continue to rise after an analyst speculated that San Antonio based, Kinetic Concepts (NYSE:KCI) might look to acquire Sanuwave for a reasonable price; given the small-cap competitor's current market valuation and the fact Sanuwave's dermaPACE® device for the treatment of diabetic foot ulcers poses a considerable threat to Kinetic's own V.A.C product. KCI generated $1 billion in U.S. revenue in 2010, healing the same types of wounds that dermaPACE® treated patients with during recently completed double-blind clinical studies. Sanuwave is on the clock for an FDA approval decision and expects to begin marketing dermaPACE® in 2012.

Sanuwave uses a promising technology which utilizes high-energy acoustic pressure waves in the "shock wave" spectrum to elicit biological effects and induce tissue regeneration and healing. Chronic and complex wounds, especially those seen in diabetic patients cost patients over $20 billion annually in the U.S. alone.

Physicians have noted that the Georgia based firm's treatment technology is non-invasive and devoid of significant clinical side effects. That has industry insiders and Wall Street commentators reasoning that the FDA approval for the acoustic pressure wave treatment device could exponentially increase the value of the firm.

Pharmacyclics, Inc. has seen a high of $13.09 and a low of $4.75 per share this year. Shares of the company have been rising in spurts recently after a drop in early August. The clinical-stage biopharmaceutical company focused on developing and commercializing innovative small-molecule drugs for the treatment of cancer and immune mediated diseases. The have three product candidates in clinical development and several preclinical molecules in lead optimization.

Gainers (% price change) Last Trade Change Mkt Cap
Cutera, Inc CUTR 7.89 +0.31 (4.09%) 109.33M
Vanda Phamaceuticals Inc
VNDA 5.53
+0.20 (3.75%)  155.41M
Sanuwave SNWV 3.35 +0.10 (3.08%)  70.04M
Compugen Ltd. (USA) CGEN 3.69 +0.11 (3.07%) 122.99M
Pharmacyclics, Inc. PCYC 11.05 +0.32 (2.98%) 665.90M
Merit Medical Systems MMSI 13.77 +0.22 (1.65%) 577.21M
Losers (% price change)
Patterson Companies, Inc. PDCO 26.96 -2.95 (-9.86%) 3.23B
Enzo Biochem, Inc. ENZ 2.71 -0.24 (-8.14%) 104.58M
Medivation, Inc. MDVN 14.71 -1.03 (-6.54%) 513.50M
Senomyx Inc. SNMX 4.00 -0.28 (-6.54%) 158.55M
Par Pharmaceutical PRX 28.32 -1.97 (-6.50%) 1.03B
Most Actives (dollar volume)
Pfizer Inc. PFE 18.09 -0.30 (-1.63%) 141.14B
Johnson & Johnson JNJ 64.49 -1.04 (-1.59%) 176.73B
Amgen, Inc. AMGN 53.63 -0.62 (-1.14%) 49.56B
Merck & Co., Inc. MRK 31.80 -0.43 (-1.33%) 97.97B
Abbott Laboratories ABT 50.04 -1.07 (-2.09%) 77.89B

 




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