I've made no bones about it: AEterna Zentaris (AEZS) is my creme de la creme under $2 price per share stock. Having dipped to $1.43/share on August 8, 2011, AEterna has rebounded to $1.89/share on 6 September 2011. Shareholders who got in have already reaped a hefty profit. I'll look forward to the deluge of thank you letters. Just kidding.
I expect the share price to jump in the near future. AEterna, despite the naysayers, is on the verge of scoring the big one. That the company hails from Canada versus the U.S., I say, even better. Canada has something to teach America. Okay, enough politics. A currency that isn't crumbling and a president (prime minister) who doesn't tank the market every time he speaks.
AEterna's big brother, Keryx (KERX), also has the foresight to push perifosine forward. I know the odds. Who doesn't? The FDA does its job, but I like the window for perifosine. Keryx, like AEterna, has rebounded from $3/share on August 8, 2011, to $3.84/share on September 6, 2011. What does that tell you? That there are enough investors who think perifosine is a winner. Myself, I'm listening. I like winners. I dump losers. I turned my back on Zalicus (ZLCS) when Exalgo failed to deliver the goods and Zacks analyst Napodano dropped his NPV (net present value) from $135M to $75M. Life is too short. Bag holders are born every hour.
Biotechs are brutal, yet heavy hitters must think Keryx and AEterna have something. The rebound of both stocks is a resounding affirmation. AEterna and Keryx are setting up to be huge winners. In contrast, dogs like Cell Therapeutics (CTIC) don't deserve a second glance. Since from the time Cell executed a reverse stock split, then diluted its shareholders, it has been on a steady decline. Cell isn't even close to being numbered among the creme de la creme. It's no different from Cel-Sci (CVM) whose shareholders count down to dilution to avoid bankruptcy. Legal problems costing Cel-Sci millions while its CEO Kersten just had his contract renewed for $464,004.45 per year. Poor guy. Life must be tough.
In September, Keryx is doing the dog and pony show along with many other biotechs. Typically, rumors fly on the Internet. I don't believe any of them. Likewise, AEterna joins the fray at two conferences. Neither conference means much to me. Conferences are whorehouses. Come buy me. Show some leg and attract a buyer. AEterna and Keryx are much better than that. In the words of Electric Light Orchestra (E.L.O.) perifosine is a "ticket to the moon."
Which is why you look past the conferences and envision perifosine's future. Keryx is bullish. AEterna is bullish. All we need is for the market to be bullish. I applaud AEterna and Keryx investors. They have found the creme de la creme.
Read what AEterna released on 31 August 2011. This clinical study for perifosine isn't in limbo except for the professional bashers who have their own agendas:
- "This Phase 3 study sponsored and conducted by our North American licensee for perifosine, Keryx Biopharmaceuticals has completed enrollment, with over 465 patients from 65 U.S. sites. The study is being conducted pursuant to a Special Protocol Assessment (SPA) with the Food and Drug Administration (FDA) and with Fast-Track Designation. Furthermore, the company has received positive Scientific Advice from the European Medicines Agency (EMA) for this ongoing Phase 3 trial, which is therefore expected to be sufficient for registration in Europe. Perifosine rights have also been licensed to Yakult Honsha for Japan and to Handok for Korea."
My response? Giddy up! Perifosine looks like it is heading for the continent of Europe, followed by Japan and Korea; eventually, the U.S. will catch up. Meanwhile, Keryx and AEterna investors will reap the rewards. Good for them.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.