Health Care Stock Watch: Some Stocks Rebounding, Some Not So Much

by: VFC's Stock House

Please note, VFC's Stock House has been monetarily compensated by JSDC LLC to cover CYTR for a period of 90 days. The fact that VFC has been compensated inherently indicates a strong bias on my behalf. The goal of this website and all articles published on my behalf is to provide investors with information, opinions, and starting points about various companies across many sectors. It's up to each individual investor to decide what he or she finds relevant.

A few stocks making headlines these days and may be worth investor attention:

(NASDAQ:MNKD): Mannkind has been hammered all year long after receiving another denial from the FDA in January for the approval of the company's inhaled insulin product, Afrezza. Solid back-up news was slow to materialize and shares slipped into the $2 range with the latest round of market turmoil.

The FDA's concerns that led to the Afrezza denial stemmed from the effectiveness of Mannkind's next-generation Afrezza inhaler, which was different than the one used in the Phase III trials, and it was new trials with the new inhaler that the FDA wanted to see before finalizing its approval decision.

Shares reached the three dollar mark again, however, when the company announced late last week that it had confirmed the trial design with the FDA of two upcoming clinical trials that will test Afrezza with the next-generation inhaler.

In turn, JMP Securities upgraded MNKD to 'Mkt Outperform' and slapped a $7 price tag on the stock, enough of a mention to draw in new investor interest that could put the stock on the path to a rebound as the trials develop.

Life's not all fine and dandy just yet, however, as funding could still be an issue and Afrezza will again need to get through the FDA - and the FDA has given no indications over the past few years that it is ready to accept any other form of insulin delivery outside of the needle.

The FDA nod on the trial design is good news for Mannkind, which could start moving higher.

Stay tuned.

(NASDAQ:KERX): Shares of Keryx Biopharmaceuticals have been on the fly since hitting lows of right around three bucks last week, and a close of over four dollars on Monday is a pretty good indicator that investors have not forgotten about the potential of the company's two Phase III products, Zerenex for kidney disease and Perifisone as an anti-cancer agent.

Both have been highly successful in trials thus far, both hold significant market potential over the long run, and neither has a changed outlook that would result from the recent market crash. Those facts made KERX a pretty good bet to rebound, and rebound it has.

There may be more in store, barring another round of market crash.

Results from the ongoing Phase III trials are due out next year, and KERX should easily attain the price targets recently set by analysts MLV Capital and Oppenheimer, after each slapped tags of "Buy" and "Outperform" on the stock, respectively; all-be-it, those targets are more likely attainable in a normal market.

Keryx is also a solid takeover candidate, in my opinion, as big pharma is on the prowl of late, looking to boost late stage pipelines as many key drugs come off market in the next few years.

(NASDAQ:CYTR): CytRx is worth taking note of since the stock has been hammered down into the thirty-cent range, but still has the potential of a full pipeline of cancer-fighting products. In fact, before the market downturn, CYTR had been on a roll with positive updates, most relating to INNO-206, an experimental doxorubicin conjugate that targets cancerous tumors that was granted and orphan drug designation (ODD) from the FDA early last month.

CytRx retains global rights to INNO-206 and the ODD will grant CytRx seven years of market exclusivity for the indication of soft tissue sarcomas, should the product make it to market in that capacity.

CytRx currently has seven clinical trials either under way or in the works, with bafetinib and tamibarotene already being tested in multiple Phase II trials.

Having been beaten down this far, it's hard to not consider CYTR a potential rebound candidate with a pipeline full of Phase II products.

Other rebounding stocks to note:

(ONTY): It didn't take long for shares of Oncothyreon to rebound back to the seven dollar level. Investors have been flocking to this one all year as the late-stage Stimuvax trials wind down and a potential 'Next Dendreon' story develops.

Well worth keeping on the radar for the remainder of the year, as it could be exciting times ahead for shareholders of this company.

(NASDAQ:TTNP): Holding steady in the $1.80s, it didn't take Titan long to rebound from its market-dip lows. Speculation about a potential buyout or major partnership for Probuphine has dominated the attention that this company has received since announcing positive Phase III trials.

As the story develops, Titan could breach - and eventually sustain - that elusive $2 share price.

With some stocks rebounding, and others like GERN still hovering at or near their lows, it's exciting times in the health care sector.

Keep looking for those deals.

Disclosure: I am long TTNP.OB.

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