Keryx Biopharmaceuticals Inc. (
KERX) shares are up nearly 5 percent today, entirely on their own merit - there's no news. Nevertheless, it's been a real whirlwind for Keryx over the last few weeks.... the stock regained its compliance with the NASDAQ's listing requirements, Phase I testing of Perifosine (for pediatric solid tumors) has begun, and Phase II testing of Zerenex (for end stage renal disease) was encouraging... encouraging enough to take the drug to Phase III.
As for the stock, the speculators and the volatility they bring have made it tough to be a long-term investor in KERX shares. It's still one of the better long-term biotech ideas we see though. The stock was trading at $11 in late 2007, so there's a ton of room for recovery.
As for the short run, there's been a significant lack of volume behind the rally since early July, suggesting the stock is apt to move lower before continuing any higher. Plus, there's no real news catalyst in the near-term pipeline to spur more short-term 'trade' buying.
Advanced Life Sciences Holdings, Inc. (
ADLS.OB) is up 21% today on no news. In fact, there hasn't been nay news since late June, and that was a fairly obscure announcement that Restanza treats Anthrax quite effectively. When's the last time you were exposed to Anthrax though?
Today's prompt may - may - have been the notion that Restanza could also be tapped as a swine flu treatment, of which there just aren't enough. Or, this could be a pre-PDUFA rally regarding Cethromycin. The FDA's decision date is tentatively schedule for July 31st. However, the FDA's gotten quite good lately at postponing decisions - don't assume anything.
Normally we'd steer clear of this kind of situation, where a "buy the rumor, sell the news" response is possible. In this case though, the chart is coming up and off a major technical low - and there's lot of room for upside. A positive announcement from the FDA could actually, you know, force ADLS upwards. It's an interesting risk/reward proposition anyway.
Advanced Cell Technology Inc. (
ACTC.PK), the only pink sheet in today's biotech round-up, is basically back where it was when we first looked at it in late May....around 15 cents per share. The stock couldn't hold onto move to 27 cents. That doesn't mean the company hasn't been busy working towards its end goal though.
As a quick reminder, Advanced Cell Technology has figured out a way to make 'safe' stem-like cells....cells that act like embryonic stem cells, but really aren't. As such the political/ethical questions don't apply.
The company has said they're getting close to actually testing the product. That was late May though... and still no testing. That may be why shares have suffered over the last three weeks - investors are a relatively impatient bunch.
To the company's credit, they're a fully-reporting pink sheet company, and they don't have to be. So, add one to the company's credibility score.
Based on the merits of the ideas alone (stem-like cells instead of stem cells) the stock's an interesting idea. Just don't expect too much too soon in the way of tangible progress though.
