Biopharmaceutical Stocks: Possible Catalysts in November (Part 2)
Jorge is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.
In the first part of this article, I wrote about four companies that could have possible catalysts in November, because a good investment strategy is to anticipate future movements of these companies. Biopharmaceutical companies are typically reevaluated weeks before presenting results of their studies or future meetings with the FDA.
In the second part of this article, I will write about other companies that have possible catalysts in November.
Another company that has an important meeting with the FDA in November is Ligand Pharmaceuticals (NASDAQ: LGND). On Jul 25, it announced that its partner GlaxoSmithKline (NYSE: GSK) has been granted priority review from the US Food and Drug Administration for the supplemental new drug application for Promacta® to treat thrombocytopenia in adult patients with chronic hepatitis C virus (HCV) infection. The expected PDUFA date could be around Nov 30.
Promacta® was originally approved in 2008 for a rare condition called chronic immune thrombocytopenic purpura, in which the body attacks its own platelets. Promacta® was discovered by Ligand Pharmaceuticals of La Jolla, California, and is marketed by GlaxoSmithKline.
The stock currently trades at $16.67 (as of November 16), with a market capitalization of $332.02 million. The 52-week high is $19.85 and 52-week low is $10.50. Positive PDUFA results could catapult shares of Ligand to the 52-week high. Ligand Pharmaceuticals is a candidate that some analysts like. Recently, Keith A. Markey, analyst for Griffin Securities, said: Ligand shares sold off on the June-quarter results...But we think investors were a bit hasty. Ligand books royalties on GlaxoSmithKline’s thrombocytopenia drug Promacta according to a tiered rate structure applied to the prior quarter’s sales (i.e. with a one-quarter lag). GlaxoSmithKline has already reported that sales for the June quarter reached $47 million, and so, Ligand will book royalties at higher rates in the remainder of the year than it did in the first half.
I would like to mention that insiders have started to snap up shares in Ligand Pharmaceuticals. David M. Kanott, Director of Ligand, just bought 2,743 shares, or $44,875 worth of stock, at $16.36 per share and BVF Partners, 10% owner of Ligand, has just bought 16,591 shares, or $252 worth of stock, at $15.19 per share.
Amicus Therapeutics (NASDAQ: FOLD) is another company that can have a catalyst in November. On Nov 5 it announced that the first 3 dose cohorts, AT2220-ERT co-administration increased Pompe enzyme (recombinant GAA) activity and study 010 is fully enrolled and results from Cohort 4 are anticipated by year-end.
AT2220 is an investigational, orally-administered pharmacological chaperone owned exclusively by Amicus. In published preclinical studies, AT2220-ERT co-administration resulted in significant increases in muscle rhGAA levels and decreases in glycogen levels in a mouse model of Pompe disease. The expected clinical results date could be about Nov 30. Positive clinical results could contribute to an increase in shares of Amicus Therapeutics.
The stock currently trades at $4.46 (as of November 16), with a market capitalization of $220.51 million. The 52-week high is $7.29 and 52-week low is $2.10. Amicus Therapeutics, it is also a candidate that some analysts like. Recently, Capstone Investments initiates coverage on Amicus Therapeutics with a Buy. The firm put on a target price of $7.00 per share.
It's also interesting that GlaxoSmithKline bought 2,949,581 shares of Amicus Therapeutics at $6.30 per share, on Jul 7.
Jorge Aura has no positions in the stocks mentioned above. The Motley Fool owns shares of GlaxoSmithKline. Motley Fool newsletter services recommend GlaxoSmithKline. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. Is this post wrong? Click here. Think you can do better? Join us and write your own!