Biotech stocks in the diabetic space rise Print E-mail
By Staff and Wire Reports   
Monday, 10 October 2011 15:47
fda calendarA group of Cowen and Co. analysts said Monday that biotechnology companies that offer major drug franchises should do well, but shares of companies that are studying or launching new drugs will struggle.

The analysts said their preferred stocks are big cap players like Alexion Pharmaceuticals Inc.(NASDAQ:ALXN), Amgen Inc.(NASDAQ:AMGN), Auxilium Pharmaceuticals Inc.(NASDAQ:AUXL), Biogen Idec Inc.(NASDAQ:BIIB), BioMarin Pharmaceutical Inc. (NASDAQ:BMRN), and Gilead Sciences Inc (NASDAQ:GILD). Each of those companies has at least one major drug franchise, and the analysts wrote that over the last three months, prescriptions for major biotech drugs have not changed much despite market uncertainty. They said prices have been raised on several major franchises.

"Stocks with solid franchises look to be a safe haven for investors and tend to perform best as markets recover," the analysts told the Associated Press.

Despite the observation, many emerging small-cap biotech stocks have managed to outperform the choppy markets in recent weeks, particularly as healthcare firms with operations in other markets around the world have seen shares fall. The "from the bottom up" trend certainly continued on Monday.

Two stocks in the growing Diabetic Foot Ulcer (DFU) space led gainers trading in the Healthcare sector. Shares of Cardium Therapeutics (Amex:CXM) announced today that it has received 510(k) clearance from the U.S. Food and Drug Administration (FDA) to market and sell the Company's new Excellagen™ professional-use, sterile, syringe-based advanced wound care product for the management of diabetic foot ulcers and other dermal wounds. A short squeeze of over 900K shares may have contributed to today's market action after trading volume saw a 10,000% increase on the news. On most days, the big board stock only sees 89,500 shares trade. On Monday, that figure was 8,949,061. Shares closed the day -22.22 %  from their 52-Wk High ($ 0.54).

The volume and price for shares of SANUWAVE Health, Inc. (OTCBB:SNWV) rose for the third copnsecutive session after recent presentations of clinical data and significant appointments to their board were announced. Over the weekend, an in-depth report looking at the company's pivotal Phase III Investigational Device Exemption (IDE) clinical trial for its dermaPACE® device said data looked favorable particularly when compared to previously approved devices filed by competitors. Sanuwave's shares have been monitored closely by multiple sources in recent days after it appeared that at least one market maker may have been caught short in the stock.  Shares had been falling inexplicably and shareholders become concerned but analysts familiar with the company felt the sell-off was unwarranted, and they look for stock to outperform. Not surprisingly, the number of shares short has decreased by 90% in recent days. SNWV shares are still trading -59.79 % from their 52-Wk High ($ 5.72) and looking for a technical breakout above the $2.71 mark.

In the U.S. alone, there are roughly 27 people diagnosed with diabetes and an estimated 1.5 million diabetic foot ulcers are treated each year. An estimated 25% of all diabetics may acquire a non-healing diabetic foot ulcer. Left untreated, or undiagnosed and treated early on, DFUs can results in 80,000 amputations each year. Hospitalization costs approach $20,000 while amputations are nearly triple that expense.


Gainers (% price change) Last Trade Change Mkt Cap
Cardium Therapeutics CXM 0.42 +0.29 (222.92%) 34.88M
SANUWAVE Health, Inc. SNWV 2.30 +0.40 (21.05%) 48.09M
Achillion Pharmaceuticals ACHN 4.95 +0.53 (11.99%) 345.11M
Sucampo Pharmaceuticals SCMP 4.10 +0.40 (10.81%) 171.72M
Pain Therapeutics, Inc. PTIE 4.61 +0.43 (10.29%) 205.75M
Losers (% price change)
Vertex Pharmaceuticals VRTX 40.41 -4.03 (-9.07%) 8.41B
Natus Medical, Inc. BABY 7.85 -0.78 (-9.04%) 230.09M
Human Genome Sciences HGSI 11.13 -0.87 (-7.25%) 2.12B
MELA Sciences, Inc. MELA 5.35 -0.22 (-3.95%) 135.15M
3SBio Inc. (ADR) SSRX 10.35 -0.41 (-3.81%) 226.81M
Most Actives (dollar volume)
Pfizer Inc. PFE 18.92 +0.48 (2.60%) 147.62B
Abbott Laboratories ABT 52.62 +1.09 (2.12%) 81.91B
Merck & Co., Inc. MRK 32.35 +0.74 (2.34%) 99.66B
Cephalon, Inc. CEPH 81.40 +0.33 (0.41%) 6.34B
Johnson & Johnson JNJ 64.43 +1.30 (2.06%) 176.56B




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