Stock Watch: BDSI, ACTC.PK, ONTY

BDSI: Shares of BioDelivery Sciences headed into the long Columbus Day weekend on an up note after trading over 5% higher on Friday, closing the week at $5-plus. With Onsolis due to launch commercially next week, BDSI's days of trading for below five dollars could be numbered. Investors have thought that before, but it's starting to look like those that held through the post-FDA-approval drop and ensuing volatility could start seeing a reward for their patience. As long as the stock is still trading in the five dollar range, however, I'll be accumulating with a long term outlook (I recently added BDSI to my IRA portfolio).

With the Onsolis approval in the rear view mirror, BioDelivery can concentrate on advancing the pipeline, leaving partner Meda to concentrate on the sales of Onsolis; sales of which BioDelivery will rake in double digit royalties.

Company CEO Mark Sirgo, in a video interview with TheStreet.com posted on Friday, discussed the future potential of the company and the BEMA technology. While mentioning that the Onsolis approval has validated the BEMA technology - therefor making future FDA approvals for products using BEMA easier - Mr. Sirgo also stated that Phase II results for the company's Buprenorphine product (also utilizing BEMA) will be released in the fourth quarter of this year. This product is intended to treat "acute and chronic" pain, contrary to Onsolis which treats only breakthrough pain in cancer treatments.

Nothing has changed with my outlook of BioDelivery Sciences. The only thing that may change is the (in my opinion) discounted price for which we've been able to buy the stock.

Disclosure: VFC is long BDSI.



ACTC.PK: Shares of Advanced Cell Technology began trading on the OTCBB (ACTC.OB) this week after the company became up-to-date on its financial statements. The move is a step up from the pink sheets for the company, as the updated financial statements add an additional air of validity to ACTC and may attract a new group of investors that wouldn't otherwise touch a pink sheet stock.

I'm still an accumulator of ACTC - especially while the stock is trading for just over ten cents - and I have a very long term outlook for the stock. The most advanced product in the Advanced Cell pipeline is Myoblast, a treatment for heart failure that has successfully completed Phase I trials and is awaiting the commencement of Phase II.

I originally stumbled across ACTC while looking for an alternative to Geron (GERN) earlier this year, as I didn't like the fact that the post-run GERN was trading for a market cap of nearly three quarters of a billion dollars when the company had nothing past Phase II trials to offer. I understand the potential of GERN's products, but if the company were to hit a bump in the road, that market cap left a whole lot of room to fall.

Advanced Cell should be considered a high risk/high reward play - one that I would consider a 'night on the town' stock - that could pay off a ways down the road.

Disclosure: VFC is long ACTC.


ONTY: As shares of Oncothyreon hit the sub five dollar mark once again last week, I picked up a few more shares for what I consider to be a pretty good price.

For those that may be new to the stock, Oncothyreon's Stimuvax, a cancer immunotherapy treatment, is currently being evaluated in a Phase III non-small cell lung cancer trial. Copied from the company's website:

Stimuvax is a therapeutic vaccine designed to stimulate an individual's immune system to recognize cancer cells and control the growth and spread of cancers in order to increase the survival of cancer patients.

Stimuvax is partnered with Merck KGaA and also has a pipeline of cancer treatments using 'small molecules.'

As I've mentioned before, if Dendreon's (DNDN) Provenge receives FDA approval - a scenario which I consider likely - then I would expect a run in the 'cancer immunotherapy' sector. ONTY would surely be a part of that run.

The stock has traded as high as trip sevens ($7.77) this year, and every time it dips below five bucks I pick up a few shares.

Disclosure: VFC is long ONTY.

Comments

[jimmy Turano:]

As usual a very good report, your article is appreciated.
VFC, I OFFER YOU A CHALLENGE, SINCE YOU ARE FORTUNATE TO HAVE A JOB, AND AND YOU LOOK PRETTY HEALTHY IN YOUR PHOTO. YOUR BACKGROUND & KNOWLEDGE, AS A WRITER FOR SEEKINGALPHA IS JUST
PERFECT FOR YOU TO ACCEPT, AND LET ALL INVESTORS KNOW YOUR PERSPECTIVE ON 'MDRNA INC' (MRNA).
THERE ISN'T ONE REPUTABLE, KNOWLEDGEABLE WRITER,
ON THE ENTIRE INTERNET WILLING TO WRITE A BRIEF
ARTICLE ON 'MRNA'. INVESTORS NEED TO HEAR A NEUTRAL OPINION, INSTEAD OF THE RESEARCH FIRMS WHO FOLLOW IT, GIVE CHRONIC 'BUY' SIGNALS, AND RIDICULOUS HIGH TARGET PRICES.
AS A FORMER VIET NAM VETERAN, I AM ASKING YOU VFC
TO TELL IT LIKE IT REALLY IS ON "MRNA".
THANK YOU!

Oct 11 08:13 AM

[baltbear:]

actic also has licensing deal with btim.ob which can yield up to $1million as former actc chief mikey west uses licenses from his former home base at his new "enterprise".
since actc is closer to rev stream higher than g&a than btim, and currently sells @ 3% of btim, it might be a stem cell proxy play for the prudent speculator.

Oct 11 01:22 PM

[kevin2:]

This artical give people many ideas for more stock news read this report.......bit.ly/42auPF

Oct 12 02:38 AM

[saber Tooth:]

VFC, you are my favorite SA writer, please keep up your superb job. Lets try to satifsy the VET above, as well as, I am curious what you have to say about MRNA..Hoora

Oct 12 09:47 AM

[spot:]

prima biomed (ASX:PRR) is Immunotherapy also commencing phase IIb trials for ovarian cancer. Why is it only 0.22cents - hope it gets to $7+ also - showing very promising results.

Oct 12 05:48 PM

[Appler:]

Mr. Turano,

You may not have heard this enough when you needed to, but, "Thank you and Welcome Home"
I also add my request for info on MRNA.
Let's have it all VFC. Please. ;-)

Oct 12 10:50 PM

[inttrading:]

Be careful listening to the advise of someone who put the stock in his own portfolio. I remember a day when people posting great recommendations all over the internet just to boost the stock they already have (while bashing their competition), just to make a profit, was shunned upon. Don't be so thirsty for information that you start drinking the sand. Only trust independent, unbiased research.

Oct 15 12:23 PM

[Name/Pseudo...:]

As I understand it there are 3 kinds of stem cells, adult, embryonic and a third kind called parthenogenic, the latter deriving from an unfertilized egg, making it immunolgically simpler with less chance of immune rejection. ISCO.OB (International Stem Cell Corporation) was first to perfect the method, owns the IP here, so much like WARF who licenses its technology, if this becomes the stem cell of choice, all roads will go through this company.

Oct 29 03:02 PM