Three ‘Long-Term’ Pharma-Based SmallCaps
MDVN: Priced Right in the $9-10 Range
JAZZ: Co Drug for Fibromyalgia up to the Plate in August
ERES: ‘EXPERT’ Cardiac Safety Data Collection: Innovative
First up this morning we have Medivation Inc., (MDVN) http://www.medivation.com/ currently trading in the $9.35 range on a 3-Month average daily trading volume of 797,980 shares. MDVN has trailing twelve month revenues of $68+ million. MDVN is involved in the development of small molecule drugs for the treatment of Alzheimer’s disease, Huntington disease, and castration-resistant prostate cancer. The company’s product candidates under clinical development include Dimebon, which is in Phase III clinical trial for the treatment of Alzheimer’s disease and Huntington disease; and MDV3100, which is in Phase III clinical trial for the treatment of castration-resistant prostate cancer. It has collaboration agreements with Pfizer Inc to develop and commercialize Dimebon; and Astellas Pharma Inc. to develop and commercialize MDV3100. MDVN has had a very curvy share/price value in the last six months, but nothing that should alarm Parma investors. The pre-commercialization of drugs is not for the faint of heart. MDVN is ‘the little company that could’ for me. In Phase III on two drugs that are so widely needed and its shares currently priced under $10, MDVN would be a long-term (1 Yr) ‘Buy’ consideration for me. Whatever happens in the near-term (3 Mo) MDVN management has said its ‘cash position remains strong and, based on current assumptions (it) expects (its) cash to last beyond 2012.’
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Next up this morning we have JAZZ Pharmaceuticals Inc., (JAZZ) http://www.jazzpharmaceuticals.com/ currently trading in the $8.27 range on a 3-Month average daily trading volume of 459,166 shares. JAZZ has a 52-week high of $13.95 set on 03-23-10 with current trailing twelve month revenues of $141+ million and a positive, corresponding diluted EPS of +$0.24. I like those earnings. And based on those earnings and the fact that JAZZ is nearly $5 off its high, JAZZ would be a long-term ‘Buy’ consideration for me. JAZZ sells Xyrem, a sodium oxybate oral solution for the treatment of excessive daytime sleepiness and cataplexy in patients with narcolepsy; and Luvox CR for obsessive compulsive disorder and social anxiety disorder. The JAZZ late-stage product candidates include: JZP-6, which has completed two Phase III pivotal clinical trials, for the treatment of fibromyalgia. JAZZ also has a very impressive drug candidate pipeline that includes: JZP-8, an intranasal formulation of clonazepam for the treatment of recurrent acute repetitive seizures in epilepsy patients who continue to have seizures while on stable anti-epileptic regimens; JZP-4, a controlled release formulation of an anticonvulsant for the treatment of epilepsy and bipolar disorder; and JZP-7, a transdermal gel formulation of ropinirole for the treatment of restless legs syndrome. In late June, JAZZ management announced the U.S. Food and Drug Administration's (FDA) Arthritis Advisory Committee and Drug Safety and Risk Management Advisory Committee will review JZP-6 (sodium oxybate) for the treatment of fibromyalgia at a joint meeting on August 20, 2010. In February 2010, the FDA accepted for filing and review the New Drug Application (NDA) of JZP-6 (sodium oxybate) for the treatment of fibromyalgia.
Finally this morning we have S&P SmallCap 600 company eResearch Technology Inc., (ERES) http://www.ert.com/ currently trading in the $8.30 range on a 3-Month average daily trading volume of 249,651 shares. ERES has a 52-week high of $8.73 set on 06-03-10 with current trailing twelve month revenues of $91+ million and a positive, corresponding diluted EPS of +$0.21. I like those earnings. ERES provides technology and service solutions that enable the pharmaceutical, biotechnology, and medical device industries to collect, interpret, and distribute cardiac safety and clinical data. The company’s cardiac safety products and service solutions include EXPERT, which provides workflow enabled cardiac safety data collection, interpretation, and distribution of electrocardiographic (ECG) data and images, and enables analysis and cardiologist interpretation of ECGs performed on research subjects. Even near its high, ERES would also be a long-term ‘Buy’ consideration for me.
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Disclosure: Long MDVN, Long JAZZ, Long ERES