The resolution of the REMS issues for Onsolis, BioDelivery Science's (NASDAQ:BDSI) treatment for breakthrough pain in cancer patients, and a money new partnership with Endo Pharmaceuticals (NASDAQ:ENDP) to bring BEMA Buprenorphine to market had BDSI trading higher by over 100% earlier this month, but the stock received another huge boost this week when a two-million-share trading day on Thursday launched BDSI right through two dollars again for a 20% gain on the day.
Already realizing a triple in price in just half a month's time, the waiting game may be over for investors of this company, especially for those that packed in a few shares at below a buck.
The tide has turned in the fortunes of this company, although it's likely that BDSI will still be susceptible to heavy volatility as the day, swing and momentum traders move in and out. It's always a good idea, in my opinion, to take a few shares off the table into significant moves such as this one to turn those paper games into a 1.75ltr bottle of Grey Goose or a family vacation, even if keeping a few shares are safely tucked away in the long term portfolio or IRA.
Given the potential for the future, however, BioDelivery shouldn't slip too far from the radar screen.
Having already landed two big-named partners in Meda and Endo, BDSI will be talked about as a perennial buyout candidate, especially if Onsolis makes headway into the cancer pain market with the REMS issues now resolved.
BEMA Bup, now being funded by Endo, will only broaden the market for BioDelivery - if approved - and will lend additional validation to the BEMA drug delivery technology, which delivers a drug to a patient through the inner lining of the cheek. The technology alone, even without the products, could be viewed as a lucrative undertaking by big pharma these days, especially since many of the big players are on a buying spree.
Thursday's action highlights the short term potential of the small biotech and pharmaceutical sectors, but as ACTC showed us this week, as easily as they rise, they quickly can fall, no matter how lucrative the long term future looks.
It's worth keeping an itchy trigger finger, in my opinion, while also respecting the rejuvenation of BDSI's pipeline potential. Once again, this looks like a solid long term gainer.
Disclosure: Long BDSI.