Where others have failed, Rexahn Pharmaceuticals (RNN) is making rapid progress manipulating the elusive cancer fighting Akt-1 pathway in clinical trials for solid tumors. Akt is an enzyme that modifies proteins by altering the biochemical signals they receive in the body, and has been identified as a leading molecular contender to disrupt a route that leads to tumor development. Rexahn created Archexin, an Akt-1 inhibitor, and successfully used it with the chemotherapy agent Gemzar (gemcitabine) in clinical trials that raised pancreatic cancer survival to almost double that of Gemzar alone.

For Rexahn, a more substantial Phase II with Archexin is set to commence soon with an enrollment goal of 150 patients who express the Akt pathway; this will make the clinical trial that much more precise and improve the chances of patient response. Another protocol for Phase II with Archexin combined with two chemotherapy agents in ovarian cancer

I recently evaluated my portfolio and realized I was completely invested in companies with market capitalizations over $100 billion. With what looks like a recovery to the overall economy of the US, I wanted to reallocate some of my portfolio to gain exposure to small cap stocks. I have always been fascinated by the biotechnology industry and wanted to add a little to my portfolio. The problem for me was I didn't really know much about the industry and that can spell disaster for an investor particularly with this industry which is universally defined as a high risk. The performance of these stocks is tied to the successful completion of phase I, II, and III clinical trials and FDA approval to commercialize the product. Failure at any one of these milestones can destroy the stock's value and subsequently the investor's portfolio. Of course the flip-side of that equation is also

It can be a difficult process to try and identify the best stocks in the biotechnology world. Each biotech claims to have perfected its relevant science and investors need to look past that and actually decide which ones are contenders and which ones are pretenders. Threshold Pharmaceuticals (THLD) appears to be an undiscovered gem.

Profile

Threshold Pharmaceuticals is a clinical stage biopharmaceutical company focused on the discovery and development of cancer therapeutics based on a novel and powerful approach of targeting tumor hypoxia.

Stock Appreciation

With all the news and earnings reports that Threshold released in 2012, it's no surprise that the stock went for a wild ride. As the chart below shows, investors were extremely pleased with the performance.

Threshold went on quite a ride last year. The early part of the year was extremely positive and after the partnership deal with Merck KGaA was signed, the stock skyrocketed.

The biotechnology industry is full of stocks that have a lot of potential but also a lot of risk. Typically, investors just trade on their gut and on what the recent analyst predictions state. However, there is a better way. That way is called the Feuerstein-Ratain rule. Although the rule is fairly limited in its scope, it has proven invaluable and has a 100% success rate. It's not very common to find a tool that investors can use faithfully to avoid an investing disaster. I will first give the definition of the rule, show how the rule would have saved investors ahead of two of 2013's largest biotechnology disasters and then apply the rule to a potential biotechnology winner but also one that still faces danger according to the Feuerstein-Ratain rule.

Feuerstein-Ratain Rule Definition

The rule basically states that a company's Phase III trial will be a failure if

Every month I like to evaluate stocks that have plenty to offer for the future, but have lost much of their short-term interest. These stocks often have plenty to offer in the way of pipelines or products and low valuations that can keep a portfolio growing even when the market might turn sideways. The following four stocks have lots of upside, are attractively priced and have plenty of opportunities and prospects for growth.

Emergent BioSolutions ( EBS )

Emergent BioSolutions, EBS, is the first stock worth taking a good look at. Following quite a run in the last quarter of 2012, EBS's stock has been driven down to lows that haven't been seen since last October. Currently at $13.41 a share (April 4th), it hasn't exactly crashed, but has experienced a steady fall from $16.90 on January 2nd of this year. All this from a company that made money

It's very common for multiple companies to be competing to become the first to market for a given medical treatment. Typically the first one to get their product to the market will have a tremendous advantage in attracting sales and brand recognition. This was the case with Ziopharm Oncology (ZIOP) and Threshold Pharmaceuticals (THLD).

This morning, Ziopharm announced that its Phase III trial for Palifosfamide did not meet its primary endpoint. The drug was being tested as a treatment for metastatic soft tissue sarcoma. This is a type of cancer of the bone, cartilage, fat or muscles.

The stock is currently getting hit hard, down over 59% to $2.10 per share.

(Click to enlarge)

As the chart below shows, this is a 2 year low for the stock.

(Click to enlarge)

The trial tested 447 patients with metastatic soft tissue sarcoma. Patients received either Palifosfamide with Doxirubicin (an approved

By Rajesh Patel, PhD

Investors in Ziopharm Oncology (ZIOP) are eagerly awaiting the release of top-line data from the Phase III trial, PICASSO III, of Palifosfamide in first-line metastatic soft tissue sarcoma (STS). We believe that Threshold Pharmaceuticals (THLD) represents an attractive derivative trade on ZIOP's data event, as outlined below.

In a previous article, we described the attractiveness of derivative trades on biotech binary events. Briefly, a derivative is a security whose value is directly or indirectly linked to another, the primary equity. In our case, we'll be utilizing the stock of a related company for risk-adjusted involvement in the upcoming binary event of a similar company. These related companies often see similar reactions in their stock price on a positive outcome for the primary company, with a less significant downside move on a negative outcome.

Take, for example, Orexigen's (OREX) rally in the middle of last year

The biotechnology industry is one of the hardest spaces to consistently identify stocks that will outperform. Many stocks seem to offer all the potential in the world, but very few seem to be able to capitalize on that promise. The hope is that the two stocks discussed in this article, Threshold Pharmaceuticals (THLD) and ImmunoCellular Therapeutics (IMUC), will be able to steer clear of the pitfalls that plague so many other small cap biotech companies like Celsion Corporation (CLSN). I chose these two stocks because of the following reasons:

• Each stock saw gains of at least 50% during 2012, giving them trading momentum
• Each stock is focused on a drug/therapy for cancer
• Each stock has average daily trading volume of at least 500,000 shares, providing ample liquidity for investors
• Each stock has upcoming catalysts during the next 12-18 months

The Celsion Disaster

Over the course of 2012, Celsion Corporation was

Company Overview

Threshold Pharmaceuticals (THLD) is a developmental biopharmaceutical company focused on cancer therapeutics that target tumor hypoxia. Hypoxia (lack of oxygen) is present in almost all solid tumor cancers and is also associated with certain blood cancers. THLD's most developed drug is TH-302, which is currently being evaluated in multiple clinical studies for the treatment of soft tissue sarcoma, pancreatic cancer and a variety of other solid and hematologic tumors. TH-302 is activated under conditions of severe tumor hypoxia with the hope of being more effective in destroying tumors while minimizing toxicity to healthy tissue. THLD has patent protection for TH-302 through 2029.

Threshold has an impressive management team and board of directors with several former senior managers of large biotech companies, including Gilead (GILD), Novartis (NVS), Biogen (BIIB), and Amgen (AMGN), as well as a former Chairman of the FDA Biologics Advisory Committee, and the Co-Founder

The biotechnology industry is one of the favorite industries for investing in up and coming companies. A lot of them offer promise, but few end up making it to the finish line. In this article, I will discuss a biotechnology company that appears poised for big returns. Before we get to that, let's go over a few examples of how the biotechnology industry can provide big risk, but also big rewards.

Recent Disaster

Just recently, Celsion Corporation (CLSN) announced that its Phase III results for its main product used to treat primary liver cancer, ThermoDox, did not meet the primary endpoint. Before the announcement, the stock had been one of the biotech darlings of 2012. As the 1 year chart below shows, the stock had rallied several hundred percent over the year, making longs a lot of money.

It appeared that Celsion was poised for greatness based on the

Investing in biotechnology companies can be highly rewarding, but also comes with unusual high risks. In this article, two biotechnology stocks with upcoming catalysts will be presented for investors seeking high potential rewards who have strong tolerance for risk.

Recent Biotech Highlights That Show Biotech Investment is Highly Risky/Rewarding

Two great examples of "big bust" and "jackpot" can be seen in light of recent developments in the biotech industry. At the end of January 2013, Celsion Corporation (CLSN) dropped around 81% from $8.38 to $1.52 in a single day on failure of its flagship product, ThermoDox. On the positive side, Keryx Biopharmaceuticals, Inc. (KERX) jumped 76.7% and closed at $6.06 on January 28, 2013 as its kidney disease drug met a late-stage trial goal.

Long-term biotechnology investors may also want to take a look at Celgene Corporation (CELG). CELG is a global biopharmaceutical company engaged in

Focus on Stocks With Long Bases That Are Seasoned But Out Of Favor

Exciting new issues that may have involved scientific breakthroughs or involve a stock in a new business category often have risen to amazing heights after going public. The individual investor may find it difficult to get shares prior to public trading. Those individuals buying in the aftermarket may have paid too much. Some of the best issues have huge percentage stock price increases in their first year of trading, only to disappoint investors over time. The tremendous opportunity addressed in the company's business plan may have cost more to execute, resulting in losses rather than gains over a period of years. The hot new stock may decline up to 90% from its peak stock price. These stocks may then trade in a low price range for four to eight years only to disappoint all of its investors.