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In the fourth part of this article, I wrote about three companies that have promising studies for drugs that help combat cancer, chronic fatigue and chronic pain.

There are another three companies that have promising studies for drugs that help to treat moderate and severe pain, Fabry disease and pain associated with neuropathic pain conditions. So in this article, I will write about the reasons to take a speculative position in Durect Corporation (DRRX), Amicus Therapeutics Inc (FOLD) and NeurogesX Inc (OTCPK:NGSX).

1. Durect Corporation

It is a specialty pharmaceutical company which develops pharmaceutical system technologies based on its proprietary drug delivery technology platforms. It focuses on the development of products for the treatment of various chronic and episodic disease areas such as pain, central nervous system disorders, cardiovascular disease and other chronic diseases.

This small pharmaceutical company has agreements with major companies in the sector such as Pfizer (PFE), Pain Therapeutics (PTIE), Orient Pharma and Zogenix (ZGNX)

Pipeline Portfolio

(click to enlarge)

(SOURCE)

New catalyst

On May 3, 2012, Durect Corporation announced that Pfizer (PFE) had efforts underway to resolve the issues raised in the *Remoxy complete response letter and stated in its earnings call on January 31, 2012 that it expected to conduct two bioavailability studies in the second quarter of 2012 and then met with the FDA in the third quarter to discuss next steps. The issues raised in the complete response letter relate primarily to manufacturing.

*Remoxy, an investigational drug, is a unique long acting oral formulation of oxycodone intended to treat moderate to severe pain. Based on Durect's Oradur technology, which is covered by issued patents and pending patent applications owned by us, Remoxy is designed to discourage common methods of tampering associated with prescription opioid analgesic misuse and abuse

Next catalyst

Meet with the FDA in the third quarter of 2012 to discuss next steps of Remoxy.

Fundamentals Analysis

Short interest

Settlement DateShort InterestAvg Daily Share VolumeDays To Cover
9/14/2012215,749266,5021.000000
8/31/2012170,925125,0681.366657
8/15/2012170,585209,3251.000000
(SOURCE)

Analyst Research

(SOURCE)

Financials

The company reported the second-quarter financial results on August 6, with the following highlights:

Revenue$4.79MM
Net Income($4.32MM)
Cash$4.15MM

Chart Analysis

(click to enlarge)

Rsi is in a good position. The stock is in a bullish channel. The MACD marks an upward trend.

2. Amicus Therapeutics Inc

Amicus Therapeutics Inc, a biopharmaceutical company, focuses on the discovery, development, and commercialization of orally-administered small molecule drugs for the treatment of lysosomal storage disorders and diseases of neurodegeneration. Its drugs are known as pharmacological chaperones, which selectively bind to the target protein, enhance the stability of the protein, help it fold into the three-dimensional shape, as well as allow proper trafficking of the protein, thereby increasing protein activity, enhance cellular function, and reduce cell stress.

Pipeline Portfolio

(click to enlarge)(SOURCE)

New Catalyst

On May 10, 2012, Amicus Therapeutics Inc announced that its study 011 will be a six-month, placebo-controlled Phase III study of migalastat HCl that completed enrollment of 67 patients with Fabry disease. Results from this study will be anticipated in the third quarter of 2012 to support subsequent marketing applications for the U.S. Food and Drug Administration (FDA) and other regulatory agencies and positive preliminary results from Study 013 were announced in the first quarter 2012 in patients who received migalastat HCl 150 mg co-administered with Fabrazyme (0.5 mg/kg or 1.0 mg/kg). The Company expects to provide an update from this study in the third quarter 2012 and to present final results at a fall 2012 scientific conference.

Next Catalyst

- Clinical results of study 011 in the third quarter of 2012.

- Update from study 013 in the third quarter of 2012.

Fundamentals Analysis

Short interest

Settlement DateShort InterestAvg Daily Share VolumeDays To Cover
9/14/20121,586,082159,6369.935616
8/31/20121,625,754126,48812.853030
8/15/20121,738,390327,3355.310737
(SOURCE)

Analyst Research

(SOURCE)

Financials

The company reported the second-quarter financial results on August 7, with the following highlights:

Revenue$10.63MM
Net Income($9.34MM)
Cash$28.9MM

Chart Analysis

(click to enlarge)

Rsi is in a good position. The MACD marks a downward trend. The stock is in a bullish channel.

3. NeurogesX Inc

It is a biopharmaceutical company, engages in developing and commercializing pain management therapies. The company offers Qutenza for the management of neuropathic pain associated with postherpetic neuralgia, and for the treatment of peripheral neuropathic pain in non-diabetic adults. It also develops NGX-1998, which has completed Phase II clinical study, is a topical liquid formulation of high concentration capsaicin to treat neuropathic pain conditions and acetaminophen prodrugs that is in preclinical stage for use in acute pain, including traumatic pain, post-surgical pain, and fever.

Pipeline Portfolio

(click to enlarge)

(SOURCE)

New Catalyst

On April 11, 2012 NeurogexX announced the U.S. Food and Drug Administration (FDA) had accepted the Company's request for an End-of-Phase II meeting to discuss Phase III clinical development of the Company's next generation product candidate NGX-1998 as a treatment for certain neuropathic pain conditions. The Company anticipates that the End-of-Phase II meeting will occur in the third quarter of 2012, allowing for initiation of Phase III clinical development by the end of 2012.

Next Catalyst

- Initiation of Phase III clinical development of NGX-1998.

Fundamentals Analysis

Short interest

(click to enlarge)

(SOURCE)

Analyst Research

Insufficient information.

Financials

The company reported the second-quarter financial results on August 9, with the following highlights:

Revenue$3.05MM
Net Income

($5.47MM)

Cash$6.51MM

Chart Analysis

(click to enlarge)

The MACD marks an upward trend. RSI is in a good position.

*Chart data sourced from stockcharts and shortanalytics.com, all other data sourced from Nasdaq.com and yahoo.com as well as the web of the previously mentioned company.

Source: 3 Best Biotech Stocks For This Week (Part V)

Additional disclosure: Investors buy and/or sell at their own risk. I declare that I may day-trade any stock at any time mentioned in this article. For me "long" is until I sell and few tell you that. I do not "short" stocks and few tell you that too. I also get paid one penny per view from SA and other than being published by SA and my own private stock account, I have zero connection to Wall Street and few tell you that too.