In the fifth part of this article, I wrote about 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.
There are another three companies that have promising studies which help to detect cancer through genetic testing services, to treat a rare disease called short bowel syndrome and to prevent prostate cancer by means of a diagnostic test. So in this article, I will write about the reasons to take a speculative position in Genetic Technologies Limited (GENE), NPS Pharmaceuticals Inc (NPSP) and Opko Health Inc (OPK).
1. Genetic Technologies Limited
GENE is a specialty pharmaceutical company that provides genetic testing services. It offers a range of DNA based genetic tests for cancer predisposition, including breast cancer, ovarian cancer, bowel cancer, and uterine cancer. The company also provides forensics tests, such as presumptive and confirmatory testing, individual DNA profiling, species identification and animal forensic testing paternity tests.
Pipeline Portfolio
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(SOURCE)
New catalyst
On October 3, 2012, Phenogen Sciences Inc, the U.S. subsidiary of Australia-based Genetic Technologies Limited, announced the immediate availability of BREVAGen, a predictive risk test for the millions of women at above average risk of developing estrogen-receptor positive breast cancer. This breast cancer risk assessment test will be available in 49 of 50 States.
Next catalyst
Revenues of BREVAGen in the next quarter financial.
Fundamentals Analysis
Short interest
| Settlement Date | Short Interest | Avg Daily Share Volume | Days To Cover |
|---|---|---|---|
| 9/28/2012 | 158,006 | 420,061 | 1.000000 |
| 9/14/2012 | 144,629 | 164,198 | 1.000000 |
| 8/31/2012 | 143,334 | 398,169 | 1.000000 |
(SOURCE)
Analyst Research
(SOURCE)
Financials
The company reported the second-quarter financial results on June 30, with the following highlights:
| Revenue | A$1.38MM |
| Net Income | (A$2.23MM) |
| Cash | A$8.90MM |
My fundamental and Chart Analysis
Genetic has a market cap of $53.60 Million and an enterprise value of $44.47 Million.. Its trailing P/E is incalculable, and its forward P/E is just 10.48. Genetic's estimated growth rate for this year is -621.82% but this information does not contemplate the future revenues of BREVAGen. It has a total cash position on its balance sheet of just A$9.15 Million. The company announced a revenue on six months ended June 30 of A$12.5MM.
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This stock plunged from its May high of $6.2 to a recent low in July of $3. If you are bullish on this stock, I would look to be a buyer on the next high-volume move above some near-term overhead resistance at $3.57 a share. Look for volume that's tracking in close to or above its three-month average action of 265,940 shares. The RSI is in a good position and MACD marks a change of upward trend. The stock is in a bullish channel.
2. NPS Pharmaceuticals Inc
It is a clinical-stage biopharmaceutical company, focuses on the development of therapeutic products for gastrointestinal and endocrine disorders, and various medical needs. The companys primary clinical programs include two therapeutic peptides to restore or replace biological functions comprising GATTEX, a Phase III clinical trial product for short bowel syndrome and Natpara, a recombinant human parathyroid hormone 1-84, which is in Phase III clinical development trials.
Pipeline Portfolio
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(SOURCE)
New Catalyst
On October 12, 2012, NPS Pharmaceuticals, Inc. announced that the U.S. Food and Drug Administration (FDA) has posted briefing materials for the October 16, 2012 Gastrointestinal Drugs Advisory Committee meeting to review Gattex (teduglutide).
Next Catalyst
Drugs Advisory Committee meeting to review Gattex on October 16, 2012.
Fundamentals Analysis
Short interest
| Settlement Date | Short Interest | Avg Daily Share Volume | Days To Cover |
|---|---|---|---|
| 9/28/2012 | 6,630,508 | 1,606,590 | 4.127069 |
| 9/14/2012 | 6,914,421 | 1,046,112 | 6.609637 |
| 8/31/2012 | 6,354,247 | 562,710 | 11.292223 |
(SOURCE)
Analyst Research
(SOURCE)
Financials
The company reported the second-quarter financial results on August 1, with the following highlights:
| Revenue | $53.51MM |
| Net Income | $7.35MM |
| Cash | $30.68MM |
My Fundamental and Chart Analysis
NPS Pharmaceutical has a market cap of $879.86 Million and an enterprise value of $960.14 Million. This stock trades at a cheap valuation. Its trailing P/E is incalculable, and its forward P/E is just incalculable. NPS' estimated growth rate for this year is 16.83% but this information does not contemplate the possible future FDA approval of Gattex. It has a total cash position on its balance sheet of just $110.37 Million. The company announced a revenue on six months ended June 30 of $76.44MM.
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This stock plunged from its February high of $8.21 to a recent low in June of $6.64. If you are bullish on this stock, I would look to be a buyer on the next high-volume move above some near-term overhead resistance at $10.93 a share. Look for volume that's tracking in close to or above its three-month average action of 2,158,595 shares. The RSI is in a good position and MACD marks an upward trend. The stock is in a bullish channel.
3. OPKO Health Inc
It is a pharmaceutical and diagnostics company, engages in the discovery, development, and commercialization of novel and proprietary technologies primarily in the United States, Chile, and Mexico. It develops a range of solutions, including molecular diagnostics tests, point-of-care tests, and proprietary pharmaceuticals and vaccines to diagnose, treat, and prevent various conditions.
Products Overview
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(SOURCE)
New Catalyst
On October 1, 2012 OPKO Health Inc. announced strategic partner, International Health Technology (IHT) headquartered in Cambridge, UK, launched the OPKO 4Kscore in Europe as part of IHT's ProstateCheck program being offered as an early detection service.
Next Catalyst
Revenues about OPKO 4Kscore in next quarter financial.
Fundamentals Analysis
Short interest
| Settlement Date | Short Interest | Avg Daily Share Volume | Days To Cover |
|---|---|---|---|
| 9/28/2012 | 31,105,015 | 1,102,191 | 28.221075 |
| 9/14/2012 | 31,612,311 | 753,306 | 41.964767 |
| 8/31/2012 | 31,243,465 | 844,779 | 36.984188 |
(SOURCE)
Analyst Research
(SOURCE)
Financials
The company reported the second-quarter financial results on August 8, with the following highlights:
| Revenue | $10.21MM |
| Net Income | ($10.80MM) |
| Cash | $38.17MM |
My Fundamental and Chart Analysis
OPK Health has a market cap of $1.29 Billion and an enterprise value of $1.26 Billion. Its trailing P/E is incalculable, and its forward P/E is just incalculable. OPK's estimated growth rate for this year is 47.47% but this information does not contemplate the future revenues of OPKO 4Kscore. It has a total cash position on its balance sheet of just $55.29 Million. The company announced a revenue on six months ended June 30 of $18.98MM.
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This stock plunged from its November, 2011 high of $5.85 to a recent low in August of $4. If you are bullish on this stock, I would look to be a buyer on the next high-volume move above some near-term overhead resistance at $4.43 a share. Look for volume that's tracking in close to or above its three-month average action of 1,173,360 shares. The RSI is in a good position and MACD marks an upward trend. The stock is in a bullish channel.
*Chart data sourced from stockcharts, all other data sourced from Nasdaq.com and yahoo.com as well as the web of the previously mentioned company.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
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.
