As many stocks are trading positive territory due to the reaction by the Big Banks after the Moody's downgrades on Thursday, I've initiated the process of considering the following pharma companies. Many pharma companies can receive considerable increases if and when they receive regulatory approval or analysts upgrades, that being said these companies could certainly pop in the price based on that assumption.
Galena Biopharma, Inc. (GALE) - Shares of GALE were trading up almost 4% during Friday's intraday session, making the stock very attractive at these levels. Currently trading in a 52-week range of $0.36/share and $3.54/share, Galena Biopharma had continued to trade in a positive manner ever since June 4th. The company noted that their drug, NeuVax, revealed that booster inoculations have assisted in the reduction of disease recurrence rates. That being said, I think GALE presents potential investors with a great opportunity to establish a position. If the stock drops to $1.40/share or lower I would then begin to establish a medium position, and any drop below $1.30/share should investors to establish a much larger position.
Arena Pharmaceuticals, Inc. (ARNA) - Shares of ARNA were trading down almost 17% during Friday's intraday session, making the stock attractive at these levels. Currently trading in a 52-week range of $1.23/share and $11.71/share, Arena Pharmaceuticals had been up nearly 37% over the last few trading sessions prior to Fridays open. The company noted that their drug, Lorcaserin, in currently under FDA review and a decision is anticipated on or around June 27th. That being said, I think ARNA presents potential investors with a great opportunity to establish a position, especially since it's off so much at the levels. If the stock drops to $8.00/share or lower I would then begin to establish a medium position, and any drop below $7.25/share should investors to establish a much larger position.
Osiris Therapeutics, Inc. (OSIR) - Shares of OSIR were trading down almost 2.5% during Friday's intraday session, making the stock a bit more attractive at these levels. Currently trading in a 52-week range of $0.28/share and $4.12/share, Osiris Therapeutics had been up nearly 25.5% over the last few trading sessions prior to Fridays open. The company noted that their drug, Prochymal, had received a second regulatory approval, as regulators in New Zealand subsequently followed Canada's decision and approved the drug. That being said, I think OSIR presents potential investors with a great opportunity to establish a position. If regulatory approval is received in other countries that stock could continue on a steady, yet positive pace in the short term. Potential investors should establish a small to medium position at these levels and if the stock drops to $9.50/share or lower I would then begin to purchase additional shares.
AVEO Pharmaceuticals (AVEO) - Shares of AVEO were trading up almost 5.4% during Friday's intraday session, making the stock attractive at these levels. Currently trading in a 52-week range of $10.40/share and $21.55/share, AVEO Pharmaceuticals had been up nearly 3.2% over the last few trading sessions prior to Fridays open. The company noted that they've recently formed an alliance with Astellas Phama, Inc. in an effort to build upon the safety profile that was demonstrated during a previous TIVO-1 study. The study will be called TAURUS and focus on the continued developments of Tivozanib which is the company's Renal Cell Carcinoma drug. That being said, I think AVEO presents potential investors with a great opportunity to establish a position. If the study proves to be beneficial in not only the development of the drug but the eventual procurement of patients, the stock carries some very positive upside. Potential investors should establish a small to medium position at these levels and if the stock manages to drops near $10/share or lower, I would then begin to purchase additional shares.
Vertex Pharmaceuticals (VRTX) - Shares of VRTX were trading up almost 3.4% during Friday's intraday session, making the stock very attractive at these levels. Currently trading in a 52-week range of $26.50/share and $66.10/share, Vertex Pharmaceuticals had been up nearly 3.8% over the last few trading sessions prior to Fridays open. The stock was in positive territory, due largely in part by a reiterated upgrade to a BUY from TheStreet.com. TheStreet.com noted VRTX has demonstrated very nice revenue growth and a very low debt-to-equity ratio of 0.53. Investors should note that the company has a significant pattern of earnings growth over the last two years and I think VRTX presents potential investors with a great opportunity to establish a position, especially at these levels and a potential position of moderate to medium size would be appropriate.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
