Tuesday will be a busy day for small cap healthcare earnings reports with small cap biopharmaceutical stocks Amicus Therapeutics (NASDAQ: FOLD), OXiGENE (NASDAQ: OXGN) and Peregrine Pharmaceuticals (NASDAQ: PPHM) all reporting earnings after the market closes. That means investors will have just two trading days left to stake out a position or to close one ahead of their earnings reports. With that in mind, here is a look at where these small cap biopharmaceutical stocks stand ahead of earnings:
Amicus Therapeutics (NASDAQ: FOLD) Is Down But Not Completely Out
Amicus Therapeutics is a biopharmaceutical company developing therapies for rare and orphan diseases. On Friday, Amicus Therapeutics rose 5.38% to $2.94 (FOLD has a 52 week trading range of $2.47 to $6.89 a share) for a market cap of $145.38 million plus the stock is down 48.7% over the past year and down 72.5% over the past five years. Amicus Therapeutics took a big hit back in mid-February when it announced more negative results from a clinical trial of migalastat - an experimental treatment for a rare genetic disorder called Fabry disease. This was after the company and its partner GlaxoSmithKline (NYSE: GSK) said back in December that the drug had not met the main goal of the trial. However, Amicus Therapeutics seems to be sticking to its belief that migalastat works against Fabry disease and its just proving hard to design a clinical trial to prove it (Note: 12-month data will be ready late in the second quarter – which could turn things around). That could sound like a company grasping at straws as its far from having another drug approved but the FDA often does not require perfect data when it comes to rare or orphan drug treatments. A quick look at Amicus Therapeutics’ finances reveals mixed revenues of $21,434k (2011), $922k (2010) and $64,358k (2009) along with net losses of $44,412k (2011), $54,936k (2010) and $6,567k (2009). However, Amicus Therapeutics did have $24,273k in cash and $81,942k in short-term investments as of the end of September – hopefully enough cash until it comes up with something…
OXiGENE (NASDAQ: OXGN): Its Both the Financials and the Pipeline
OXiGENE is a clinical-stage biopharmaceutical company developing novel therapeutics to treat cancer with a major focus being the development of vascular disrupting agents that selectively disrupt abnormal blood vessels associated with solid tumor progression. On Friday, OXiGENE rose 4.62% to $4.08 (OXGN has a 52 week trading range of $3.75 to $15.36 a share) for a market cap of $7 million plus the stock is down 69.9% over the past year and down 82.7% over the past five years. Back in January, OXiGENE regained compliance with Nasdaq listing requirements that stocks trade above $1. In addition, OXiGENE announced that a Phase 2 study of ZYBRESTAT to treat patients with persistent or recurrent ovarian cancer had again demonstrated acceptable tolerability while in November, the company announced that OXI-4503 aimed at acute myelogenous leukemia had received an orphan drug designation from the FDA. Otherwise, a quick look at OXiGENE’s finances reveals virtually no revenues; net losses of $9,653k (2011), $23,770k (2010) and $24,728k (2009) for the past three reported years; and the company had just $6,323k in cash at the end of September. In other words, investors need to pay close attention to both OXiGENE’s financials and any new news about its drug pipeline.
Peregrine Pharmaceuticals (NASDAQ: PPHM) Has Trouble With a Key Pipeline Drug
Peregrine Pharmaceuticals is a biopharmaceutical company with a portfolio of innovative monoclonal antibodies in clinical trials focused on the treatment and diagnosis of cancer. On Friday, Peregrine Pharmaceuticals rose 12.86% to $1.58 (PPHM has a 52 week trading range of $0.39 to $5.50 a share) for a market cap of $209.41 million plus the stock is up 132.3% over the past year and down 36.8% over the past five years. In addition, some 10,000 April 5 calls were bought for $0.05 at the end of last week, but the volume was far below open interest at the strike. In the middle of February, new pancreatic cancer study results for Peregrine Pharmaceuticals’ cancer drug bavituximab showed that the drug behaved very much like a placebo. It should be mentioned that Peregrine Pharmaceuticals also has earned a reputation for releasing unverified response rate data from its bavituximab studies and then those response rates end up being nullified by independent review. That aside, Peregrine Pharmaceuticals has reported mixed top line results of $15,233k (fiscal 2012), $13,492k (fiscal 2011) and $27,943k (fiscal 2010) for the fiscal years ending in April and deteriorating bottom line results of $42,119k (fiscal 2012), $34,151k (fiscal 2011) and $14,494k (fiscal 2010). At the end of October, Peregrine Pharmaceuticals had $24,443k in cash on hand. So really, Peregrine Pharmaceuticals needs to get something approved to boast its top and bottom line. The trouble is, bavituximab is the closest thing it has to getting something approved…
The Bottom Line. Irrespective of their upcoming earnings reports, small cap biopharmaceutical stocks Amicus Therapeutics, OXiGENE and Peregrine Pharmaceuticals are clearly not for the risk adverse – which could also mean a big payout at some point in the future for the risk tolerant.