Alexion Pharmaceuticals, Inc.
Over this past year, the oncology treatment industry has been a hotbed of acquisition rumors, which caused analysts and investors to endlessly speculate on which companies will be swallowed up next by the larger fish in the sea. In a previous article, I visited the eye of the storm: Onyx Pharmaceuticals, which put itself on sale after a failed $8.7 billion buyout attempt from Amgen. Amgen is reportedly still more »
In the last couple of months, we saw two big offers being made - and rejected - in the biotech sector. Both times, the companies that rejected these offers saw huge spikes in their respective stocks. Alexion (NASDAQ: ALXN) rejected an informal takeover proposal from Roche (NASDAQOTH: RHHBY) and went up 7%. Earlier, Onyx (NASDAQ: ONXX) rejected Amgen’s takeover bid and went up 50%.
Investors generally need not worry that these more »
In 2013, a number of new drugs got approvals from the FDA. This provided a boost to the biotech industry as a whole. Now, this speculative growth market is so sensitive that even positive results from clinical trials can take a company's stock to the moon. This is what happened with Alnylam Pharmaceuticals (NASDAQ: ALNY) last week.
What a week
Last week, when Alnylam released its early-stage clinical data more »
Alexion Pharmaceuticals (NASDAQ: ALXN), already quite expensive, spiked higher since takeover rumors surfaced in early July. But can a deal give the stock another boost? I’m doubtful. Even if there is a buyout, which is not a certainty, I think it's probable that the company won’t command a much higher valuation than the current price. Saying that, there are also very good reasons I could be wrong more »
Questcor Pharmaceuticals (NASDAQ: QCOR) reported earnings after the bell on Tuesday and traded significantly higher. The stock is now up more than 215% since its October 2012 low. Now, with the stock touching new all-time highs, it is in uncharted territory, but is it still cheap compared to its closest peer?
Two companies/Same approach
Three of the biggest names in biotechnology have reported earnings, and their quarters involved very important drug-related information for investors. In this article, let's look at which of these stocks might be presenting an investment opportunity.
Far Too Early For Decelerated Growth
Alexion Pharmaceuticals (NASDAQ: ALXN) has traded higher by 22% over the last month, giving the company a market cap of $21 billion.
Alexion markets an orphan drug more »
The biotech industry is known for fast paced acquisitions and rapid market consolidation. Larger pharmaceutical companies headed towards patent cliffs often scramble to acquire smaller companies to revive their drying pipelines. Meanwhile, startups frequently go public without any market approved drugs or sources of revenue. Sometimes, large fish get swallowed by even larger ones, and these acquisitions can secure important sources of constant revenue growth for years to come.
One more »
For quite some time now the biotech industry has been demonstrating a perceptible inclination towards discovery of drugs for ultra-orphan diseases. Understandably so because orphan drugs demand a high price in the market. In such a scene, Alkermes plc (NASDAQ: ALKS) has adopted a counter-cyclical strategy and chosen to target chronic diseases.
Alkermes focuses on unmet medical needs in specific patient segments. In simple language, the company is using its more »
This year has brought great prospects for biotech companies. Despite the fact that the biotech industry is a speculative growth segment, investors poured their money into this industry. I think this change in the public’s investment decision is not due to some altered perception regarding stock purchases. They are still following the most basic guideline of investing: the greater the risk, the greater the return. The difference is that more »
In most cases, a biopharmaceutical company chooses to develop either high-priced orphan-designated drugs, or therapeutics to treat large patient populations. Yet one company in particular, Regeneron Pharmaceuticals (NASDAQ: REGN), is crossing the line as a dual-threat developer of both kinds of drugs. Here's why that might make it worthy of your investment.
The Difference In Therapeutic Approach
Drugs that earn orphan designations treat rare diseases. Orphan drugs are more more »
Orphan drug stocks may have been the hottest and best performing sector of the market for the past year, but they have really been on fire for the past month and have frequently been the object of takeover rumors. The big question is, “Can this buying frenzy be sustained; or is the rally over, at least for the time being, now that orphan drug stocks appear to be leveling off more »
Questcor Pharmaceuticals (NASDAQ: QCOR) has a particularly fascinating history, having been at the center of controversy for the better part of its existence. For several years, investors have enjoyed large returns, and the company has marketed its only product, Acthar, with exceptional success. As it approaches new highs, should you take notice?
The Center of Controversy
Questcor Pharmaceuticals markets and develops Acthar Gel. It's a treatment for infantile spasms more »
Celldex (NASDAQ: CLDX), the first antibody-based immunotherapy company, has been a strong buy recommended by several analysts for some time now. Obviously analysts were bang on target as the stock has gone up more than 51% in a matter of five days and gained an astounding 400% in 52 weeks. The stock is currently trading at around $20 a pop, up from about $4 a year ago.What is moving more »
Any investors who were smart enough to buy shares of Leap Wireless on Friday will likely have doubled their money come Monday morning. Wireless giant AT&T has bid $15 per share for Leap -- a big premium over Friday’s $7.98 closing price.
Trying to bet on the next big deal might not be the wisest investment strategy. Still, a company’s potential as an attractive takeover candidate should more »
In the last couple of weeks the market saw some great escalations and depressions regarding the share prices of many biotech companies. The whole biotech segment has been under the highlights since the beginning of this year. This is because a number of new drugs were approved by the FDA last year. The trend continued in the first quarter of 2013. The market right now is so sensitive that even more »
According to a Bloomberg report, Roche (NASDAQOTH: RHHBY) is prepared to offer $130 a share to purchase Alexion Pharmaceuticals (NASDAQ: ALXN). In other words, Roche is attempting to pay 20 times Alexion’s annual sales, which would give Roche just one FDA-approved product. Is this company crazy?
What Is So Attractive?
Alexion’s Soliris is FDA-approved for two indications: Paroxysmal Nocturnal Hemogloinuria (PNH) and Atyptical Hemolytic Uremic Syndrome (aHUS). Both more »
Pharmacyclics (NASDAQ: PCYC) crossed $100 a share on Thursday, giving it a market cap of $7.4 billion and a one-year return of 73%. As the company prepares to seek FDA approval for its oncology drug candidate ibrutinib, has its valuation become too large to justify your investment?
Promising Yet Expensive
Pharmacyclics is at a crucial point in its history: It is seeking an FDA approval to treat mantle cell more »
Orphan drug companies are an exciting new class in the healthcare sector -- with good and bad investment opportunities -- let's look at the differences.
What is an Orphan?
The word “Orphan’ in biotechnology creates excitement! It means that a company has more years of exclusivity on a product and it also indicates that a company’s technology is beyond the norm.
Orphan indications are not earned easily, as companies must more »
Editor's Note: This article has been modified to correct the spelling of Soliris.
The healthcare industry is slowly becoming what the pre-crash technology industry was of the early 2000's. The emergence of new technologies in medicine, an aging working population, and retiring baby boomers are all expected to provide tremendous growth to the industry over the next several decades.
Many companies will inevitably capitalize on this growth more »
"Making every patient count" is a catchy phrase that is perhaps most meaningful for biotech companies like NPS Pharmaceuticals (NASDAQ: NPSP) who are in the business of developing orphan drugs. The simple reason – they cannot afford to lose a single patient just because there aren’t too many of them. Their whole business is centered around producing drugs for rare diseases that bigger pharma often does not address, and in more »
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