A Bio-Pharma Buy And Sell List: Part 2

by: StockMatusow

<< Return To Part 1

In Part 1 of this two part article, I gave a quick opinion on the following bio-Pharmas:

  • Human Genome Sciences (HGSI)
  • Arena Pharmaceuticals (NASDAQ:ARNA)
  • Vivus Inc. (NASDAQ:VVUS), Idenix Pharmaceuticals (NASDAQ:IDIX)
  • Inhibitex Inc. (NASDAQ:INHX)

Here in Part 2, I will give a quick summary of a few more bio-pharmas followed by my opinion and some comments.

Achillion Pharmaceuticals (NASDAQ:ACHN), PPS: $11.18

Achillion Pharmaceuticals, a biopharmaceutical company, engages in the discovery, development, and commercialization of treatments for infectious diseases. The company focuses on the development of antivirals for the treatment of chronic hepatitis C; and the development of antibacterials for the treatment of resistant bacterial infections.

Opinion, Sell ACHN;

ACHN is yet another rumored buy-out target for big pharma. Recently, the company CEO pretty much stated the company is for sale. ACHN was down over $1 from the 1/13/11 closing price as of 1/17/11.

ACHN is seriously overbought and a big cash burner. Insiders are selling; why would insiders be selling now if they believe they will be bought out?

Looks like a good short down to $9.

Amarin (NASDAQ:AMRN), PPS: $7.68

Amarin Corporation Plc, a clinical-stage biopharmaceutical company, focuses on developing treatments for cardiovascular diseases.

Opinion, Day Trade it to the long side.

This one is a tough call for me. The Company history clearly shows constant missed self proclaimed projections, money burn, and not much of anything significantly positive lately. However, the stock has a high beta, which makes it a nice day trader. Consider day trading this one and don't hold shares overnight. Any hint of bad news can cause a massive gap down overnight into the next trading session.

Acorda Therapeutics (NASDAQ:ACOR), PPS: $26.13

Acorda Therapeutics, Inc., a commercial stage biopharmaceutical company, involves in the identification, development, and commercialization of therapies for multiple sclerosis (NYSE:MS), spinal cord injury, and other nervous system disorders.

Opinion, Strong Buy; I am considering taking a long term position in Acorda.

I recently covered Acorda more in depth in an article you can find here.

I strongly encourage savvy investors who love to do the deeper DD, to check out Acorda.

Questcor Pharmaceuticals (QCOR), PPS: $38.42

Questcor Pharmaceuticals, a biopharmaceutical company, provides prescription drugs for the treatment of auto-immune diseases.

Opinion, Buy;

I recently did an article on Questcor which can be found here.

Questcor jumped 1.94 on 1/17/11. I saw some of the bullish chart indicators over the weekend and thought the company had some decent fundamentals and promise. Take a read of my article on it and see if you agree.


IntelGenx Technologies Corp., a drug delivery company, engages in the development oral immediate-release and controlled-release products for the pharmaceutical market.

Opinion, Speculative High Risk Buy;

IGXT has a ton of drugs in their pipeline. They recently received FDA approval of CPI-300, for patients with Major Depressive Disorder. CPI-300 is a novel, high-strength formulation of Bupropion

hydrochloride (HCl), the active ingredient in Wellbutrin XL. CPI-300 is the only single dose 450 mg formulation of Bupropion HCl approved by the FDA.

So why the super low PPS on IGXT? They have unresolved legal issues and basically no cash. They really need to consider a public offering of about 30 million shares to have any chance of future success. Their tech is very promising and this one could yield huge a reward,

or yield a huge bag! Be careful before putting any money into IGXT.

Biosante (BPAX), PPS: $0.66

BioSante Pharmaceuticals, a specialty pharmaceutical company, develops products for female sexual health and oncology.

Opinion, Stay the heck away from BPAX!

Biosante's PPS was destroyed after phase 3 efficacy results for their lead drug, Libigel, was proven to be no more effective than a placebo in terms of treating certain female sexual dysfunction. The PPS dropped from around 2.65 to an after hours market bid of 0.50 cents on the same day, ouch!

Libigel was developed for the sole purpose to deliver testosterone via a trans dermal gel. To that end, the formulation was a success; Testosterone was increased in patients who applied the gel.

Biosante believed that this gel delivered dose of Testosterone for women would treat certain female sexual dysfunction. To that end, Libigel has failed. (so far) Investors who bought Biosante at much higher prices than the current PPS are hoping and praying for some good news from Biosante in Feb. of this year when their T-Gel faces an FDA approval decision.

To date, Biosante has been an epic fail of a company, with no drugs ever approved by The FDA, except one; Elestrin, which was not their drug, but created by Antares. Even if T-Gel is approved, Biosante is running thin on cash, burning nearly 4 million a month, and will only hope to realize a small royalty deal on T-Gel.

Biosante needs a miracle; let's hope Biosante gets that miracle! Lots of good people are losing badly there. I wish I could recommend Biosante, but sadly, I cannot.

Antares Pharma (AIS), PPS: $2.20

Antares Pharma, a pharmaceutical company, focuses on self-injection pharmaceutical products and technologies, and topical gel-based products.

Opinion, strong long term buy and hold;

Antares announced on 1/17/11, a new royalty deal for their recently FDA approved Anturol, with a Korean Pharma. Antares already has a deal with Watson Pharma (WPI) as a partner who will market the drug in The USA and Canada. You can read the PR about the new Korean deal here.

Obviously I am bias towards Antares because I own a good amount of shares in the company. I bought Antares because I believe in the long term prospects, fundamentals, and management of this company. I believe once any savvy investor does the deeper DD on Antares, they will agree with me and buy and hold it for the long term.

I have written prior articles on Antares for your consideration;

  • Article about Nestragel (Female gel contraceptive) is here.
  • Article about Teva and AIS is here.
  • Other article is here.

Best of luck and sucess to everyone, do the DD and make a ton of money!

Disclosure: I am long AIS. I might initiate a long position in ACOR in the next 72 hours.