Biotechs With Room to Run

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 |  Includes: ALXA, BJGP, CBLI, CHTP, DCTH, DEPO
by: M. E. Garza

Here now is our opportunity to reiterate some of the solid companies that we've covered recently- especially since they have treated our readers and investors well. It's important to note that some of these runners are still not done, so keep a close eye because there is definitely more to come.
Alexza Pharmaceuticals, Inc. (NASDAQ:ALXA) - This stock has been on fire since their $18M direct offering back in August, up roughly 40% since the lows in August. This stock still has more room to climb up until their PDUFA date for AZ-004 on October 11th, 2010. See our original report for all the details

Cleveland BioLabs, Inc. (NASDAQ:CBLI) - Shares of CBLI have been climbing since we said that the company was in line for some substantial government contracts. The stock was trading at $3.81at the time but it saw a high of $5.75 on Friday after the company was awarded a $45 million contract (including options), from the United States Department of Defense (DoD) Chemical Biological and Medical Systems (CBMS) - Medical Identification and Treatment Systems (MITS) to develop and stockpile their CBLB502 drug as a medical radiation countermeasure.

This, and the fact that the stock should be heading even higher from here, should be of no surprise to our readers after Cleveland's Biolabs' CEO & President, Michael Fonstein, told BioMedReports that his company was in line for contracts with multiple components. The company will host a conference call at 10:00 a.m. EDT Monday to discuss recent corporate developments and a live webcast of the conference call will be available on the Cleveland BioLabs website.

If you want to read more about why we are so bullish regarding CBLI, we invite you to start here. We believe strongly that this company will not be trading at these new higher levels for very long.

Chelsea Therapeutics International (NASDAQ:CHTP) - This stock went crazy on Friday, after a mention on CNBC by Peter Navarro (video) sent shares to an intra-day high of $5.75.

Obviously, our readers have been in on the secret that is Chelsea Therapeutics since mid-August. We are still very bullish on the pending Phase 3 results and the hype on the Street just reaffirms our position.

Based on their recent presentation at Rodman and Renshaw, CEO Dr. Simon Pedder reiterated that results will be out at the end of September. Read the details here.

Delcath Systems, Inc. (NASDAQ:DCTH) - Shares of Delcath have been on a roll since late-August, up more than 25% since our coverage. Remember, DCTH plans to file an NDA for their PHP system sometime in October. This event should serve as another positive catalyst and price mover.

DepoMed, Inc. (NASDAQ:DEPO)
- Initial coverage began on August 4th, after DEPO avoided a potential patent lawsuit with Pfizer (NYSE:PFE) over the submission of DM-1796. We still believe DEPO has further to climb. Positive news about recommencing shipments of GLUMETZA 500mg product will take this higher. DEPO is up roughly 20-30% since our initial coverage, depending on entry price.

Kraig Biocraft Laboratories [OTC:KBLB] has been a surprise hit of these past two weeks. We first talked about this company, which is dedicated to the development of Spider silk-based material, one of the strongest and most resilient fibers known to mankind back, when it was trading at $.02.
Since then, the stock has been on a run which has returned substantial profits since publishing details about their new suite of patented technologies as well as news that they have successfully created transgenic silkworms. The silkworms were successfully genetically engineered with targeted spider silk DNA sequences.

Kraig Biocraft has called a press conference later this month to discuss developments in its laboratory. As a matter of fact, just this morning, the company announced that they anticipate releasing more details about that upcoming press conference later this week. Given all the recent hype, it is our belief Kraig Biocraft will make a significant announcements at that time. The stock has seen highs of $.19 and it closed at just under $.14 on Friday, but could go much higher in the weeks ahead.

Our original alert about the company can be read here.

Finally, when we broke the story that BMP Sunstone (NASDAQ:BJGP) had received a buy-out offer from a private company a few weeks ago, the stock was trading for just above $5. The stock is trading over $8 with even louder rumors about that pending buy-out circling the Street. Since our call, BMP Sunstone has made Smart Trend's list of top five companies in the pharmaceuticals industry as measured by relative performance.

Disclosure: Long CBLI, CHTP