On Monday, small cap biotech stock Keryx Biopharmaceuticals (NASDAQ: KERX) surged 76.6% while Repros Therapeutics (NASDAQ: RPRX) sank 40.3% to become the big biotech or pharma movers, but small caps Atossa Genetics (NASDAQ: ATOS), ACADIA Pharmaceuticals (NASDAQ: ACAD) and Opko Health (NYSE: OPK) were also making moves with the last two moving in part due to Mad Money’s Cramer. However, should you get into the action with these small cap biotechs or sit on the sidelines?
Beginning with small cap Atossa Genetics, its focused on the development and marketing of novel cellular and molecular diagnostic risk assessment products for breast cancer. Specifically, Atossa Genetics uses a patented, FDA-cleared Mammary Aspirate Specimen Cytology Test (MASCT) System that can painlessly collect a sample of Nipple Aspirate Fluid (NAF) in about 10 minutes. On Monday, Atossa Genetics rose 8.10% to $4.71 (ATOS has a 52 week trading range of $3.44 to $5.61 a share) for a market cap of $60.85 million, but its worth noting that the stock only had its IPO back in early November at $5 a share to raise just $4 million (underwriters were granted a 45-day option to purchase up to an additional 120,000 shares and the company had hoped to price its IPO at $6). On Monday though, Atossa Genetics had a trading volume of 42,276 verses a normal daily average of 8,362 with the only news being an announcement that the company will take part in the 15th Annual BIO CEO and Investor Conference in New York City, on Monday, February 11, 2013. With that in mind, traders might want to study Atossa Genetics’ charts while keeping in mind the stock’s usually low trading volume.
Meanwhile, ACADIA Pharmaceuticals is a small cap biopharmaceutical company focused on innovative small molecule drugs that address unmet medical needs in neurological and related central nervous system disorders. ACADIA Pharmaceuticals says it has a pipeline of product candidates led by pimavanserin - Phase III potential treatment for Parkinson's disease psychosis. On Monday, ACADIA Pharmaceuticals rose 7.59% to $6.66 (ACAD has a 52 week trading range of $1.29 to $6.88 a share) for a market cap of $397.31 million plus the stock is rising more than 1% in after hours or pre-market trading action. Otherwise, ACADIA Pharmaceuticals is up 316% over the past year and down 38.9% over the past five years. While ACADIA Pharmaceuticals has been rising for a week, Cowen initiated coverage on in a research note released on Monday morning and gave the stock an outperform rating. Moreover and last week, Mad Money’s Cramer (for what its worth) also said: "You want to buy, buy, buy Acadia." Otherwise, ACADIA Pharmaceuticals is scheduled to report earnings again on March 6, 2013.
Finally, Opko Health is a multinational pharmaceutical and diagnostics company that aims to establish industry-leading positions in large and rapidly growing medical markets. On Monday, Opko Health rose 6.45% to $6.60 (OPK has a 52 week trading range of $4.00 to $6.70 a share) for a market cap of $1.97 million plus its rising another 3% in after hours or pre-market trading action. Opko Health is up 25.2% over the past year and up 65.8% since early 2011. As with ACADIA Pharmaceuticals, Mad Money’s Cramer had a hand in moving Opko Health because in the show’s "Executive Decision" segment, he talked to the company’s chairman and CEO – after talking to him just three months ago. Cramer then reiterated his support for Opko Health by saying it has a proven track record of creating value and an “uncanny ability” to spot and then acquire small companies with breakthrough products long before they get noticed.
The Bottom Line. Traders might want to study Atossa Genetics’ charts while keeping an eye on ACADIA Pharmaceuticals and when the next appearance of Opko Health’s chairman and CEO will be on Mad Money’s Cramer.