Three Bio-Pharmas You Should Buy: SVA, MAPP, CYCC

Trends, Charts and Exclusive Opinion

Three SmallCap Bio-Pharmas You Should Buy 

SVA: Stock Offering $ Goes to Land and Buildings

MAPP: Phase III Trials in Progress for Primary Drug

CYCC: Breast Cancer Drug Makes Serious Strides

Up first this morning is Sinovac Biotech Ltd., (SVA) http://www.sinovac.com/ currently trading in the $6.93 range on a 1+ million share 3-Month daily trading average. SVA was trading below $2 a year ago and staged a steady climb through the end of Sept 09 passing the $6 mark. SVA then shot up past $10 before finding an $8 floor through Dec. In 2010, SVA has somewhat leveled out trading between $6 and $8. SVA has a 52-week high of $12.50. SVA has trailing twelve month revenues of $60+ million and a positive, corresponding diluted EPS of $0.32. That’s why SVA is a short-term (6 Mo) ‘Buy’ consideration for me: Earnings.    

In mid-Feb, SVA management said a Company subsidiary completed its acquisition of new buildings and land use rights for approximately $17.6 million, with an initial payment of $8.3 million. SVA Beijing is acquiring five existing buildings with a total built-out area of 32,322.66 square meters on 29,021.61 square meters of land, located in Changping District, Beijing, about half hour from its headquarters. SVA is a vaccine maker in China and how’d they pay for the new land and buildings to increase production? In late Jan SVA offered approximately 10 million shares to the public at approximately $5.75 a share, netting about $53+ million. The rest of the net will be used for production plant expansions; research and development; and expanding and enhancing product lines. The SVA drug portfolio consists of vaccines against the hepatitis A, hepatitis B and influenza viruses.

SVA 1-Year

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Next up this morning is MAP Pharmaceuticals Inc., (MAPP) http://www.mappharma.com/ currently trading in the $16.17 range on a 3-Month average daily trading volume of 252,420 shares. MAPP was also trading in the $2 range a year ago and at the end of May, jumped to the $12 level before falling back to $10 –which it held- for the next 5-Months. MAPP slid to the $8 level for a couple of months, shot up to $16 and it has been trading at that price (with a few dips) since Jan 2010. MAPP has a 52-week high of $16.80 set on 02-03-10 and MAPP has revenues; trailing twelve month revenues are $54+ million. While MAPP has some downsides; too many short-sellers in the float and a recent quarter that produced a 54 cent EPS loss, the upside is Levadex.

Based simple on the premises of what Levadex does and how it is delivered (and where it is in trials), MAPP –even near its high- is a long-term (1 Yr) ‘Buy’ consideration for me.

MAPP is still running studies of Levadex, but regulators are not requiring the company to conduct a second late stage clinical trial. Treatment in the current studies (Phase III) is expected to be complete later this year. So what’s the big deal? Levadex treats Migraine headaches through oral inhalation. If you’ve ever known anyone who gets migraines, relief and a couple of inhaler finger-pumps would be a dream come true. That’s the big deal.

Finally this morning is Cyclacel Pharmaceuticals Inc., (CYCC) http://www.cyclacel.com/ currently trading in the $2.64 range on a 3-Month average daily trading volume of 6.7 million shares. Wow. CYCC was trading under 50 cents a year ago and found a $1 at the end of May 09. CYCC held that price in essence for the next 7-Months until it skyrocketed in Jan 2010 past the $4 level. CYCC then fell to $2 and has been flirting between $2 and $3 ever since. CYCC has a 52-week high of $4.08 set on 01-08-10. CYCC is a long-term ‘Buy’ consideration for me at this price.

CYCC is a development-stage biopharma company involved with novel, mechanism-targeted drugs to treat human cancers and other serious disorders. CYCC has a very impressive pipeline. In mid-Feb CYCC announced that a newly published study demonstrates that the Company's Seliciclib drug, an orally available inhibitor of multiple cyclin-dependent kinases, reversed resistance to the aromatase inhibitor letrozole and killed hormone receptor positive breast cancer cells that had become insensitive to the effects of letrozole. The new study was published in the current edition of Clinical Cancer Research, a journal of the American Association for Cancer Research. Seliciclib is currently in Phase 2 clinical trials for non-small cell lung cancer and nasopharyngeal cancer. ‘Buy’.

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