| Biotech speculators continue to buy into positive attention |
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| By M.E.Garza | |
| Wednesday, 01 February 2012 06:55 | |
 Shares of PROLOR Biotech, Inc. (AMEX:PBTH) have been on the move since we told readers about the company in January and jumped another 2.81% on Tuesday.
The biopharmaceutical company which utilizes patented technology to develop longer-acting, proprietary versions of already approved therapeutic proteins led gains on the Bloomberg Israel-US Index in January with a 45 percent surge after dropping 34 percent last year. PROLOR is 21 percent owned by Teva’s Chairman Philip Frost and there is little doubt that may come into play for PROLOR's valuation as more data and study results from key are revealed going forward. “Levin’s background will enable Teva to buy companies like Prolor that would fold particularly well with the company,” Selvaraju told Bloomberg on Wednesday. Even following their recent financing, there has been substantial volume and a considerable number of big block buys for shares of Cel-Sci (AMEX:CVM)-- a big board listed firm in Phase III trials with their immunotherapeutic agent, Multikine®, which is being developed as a potential first-line treatment for advanced primary head and neck cancer. Even as we saw shares rising in early January-- following reports that clinicians involved in the study were seeing positive, albeit anecdotal results in early patient dosings, we advised our premium subscribers to set stop losses in case a financing was in the works. It was only logical to us that the firm would raise much needed capital and true to form as most biotechs do, Cel-Sci took advantage of the price action and volume to raise $5.76 million. Investors do credit them for being careful to structure their registered direct offering with an institutional investor in favorable terms only a few cents below their trading price and with warrants priced above current market prices. As mentioned previously, Teva expanded their licensing deal with Cel-Sci in the fall in order to add two more countries (Croatia and Serbia) in which the firm can market Multikine. Teva already owns an exclusive license to Multikine® in Israel and Turkey while CEL-SCI has retained the key European and U.S. markets. Real data changes everything for these biotechs and we will continue watching for further developments. In the end, as analysts point out, the intrinsic value for a company and their product candidates is calculated based upon the size of the market, projected peak penetration rate, competitive landscape, probability of approval based on publicly available clinical data and other factors including length of patent term protection. So long as these biotechs keep performing and meeting key milestones, their shares should continue to appreciate in value. 
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