AtheroGenics: No Guts, No Glory

Feb. 8.07 | About: Atherogenics Inc. (AGIX)

January was a volatile month for AtheroGenics (AGIX), as the small emerging pharmaceutical company's stock price moved within a $4 range from a low of $9.25 to a high of $13.25. Investors are waiting for the upcoming trial data on its heart drug. The Phase 3 trial of 6,000 patients is expected to show a reduction in the risk of cardiac events, including death, heart attacks,stroke, bypass surgery, angioplasty or hospitalization.

AGI-1067, an anti-inflammatory drug for reducing atherosclerosis, or the build up of plaque inside arteries is a high risk project with the possibility of failure. However, if approved it has the potential of reaching $5 billion per year in sales. Data is expected to be release on the study in late March at the American College of Cardiology Scientific Sessions in New Orleans.

  • Technicals: Support at $10 on weekly chart.
  • Shares Outstanding:39.45M
  • Float:38.23M
  • Shares Short: 18.67M
  • Short % of Float :49.00%
  • Total Debt: $286.00M
  • 2006E Earnings: -$1.85
  • 2007E Earnings: -$0.45
  • 2008E Earnings: $0.81
  • AGIX

    If approved this stock will skyrocket as shorts cover. But if it isn't...it's a dud!

    No guts no glory.

    Disclosure: Author is long AGIX.