appledeadmoney

Advanced Life Sciences Attractive After Recent Sell-Off

Good breakdown on the study involving the company's premier drug candidate, cethromycin. However, my pharma background makes me skeptical about any real positive catalysts coming from an anticipated launch of this particular antibiotic.

Although the efficacy data appears positive, the safety data may become a much larger concern as cethromycin moves closer to market. Cethromycin is a ketolide. One only has to look at the first ketolide (Ketek) launched two years ago by Sanofi-Aventis. Ketek was probably one of the most powerful and effective antibiotics ever brought to market. Although the drug had a fairly solid launch, it was probably never going to be a huge blockbuster. Hurting the drug even more was the safety issues that surfaced last year. The FDA raised concerns regarding deaths and liver toxicity which eventually spelled the demise for the promising young antibiotic.

With this as a recent example, I would not be keen to take bets on small biotech companies banking on an antibiotic for its first big splash in the world of pharmaceuticals. First of all antibiotics are usually not cash cows and doctors are reserved about prescribing a new antibiotic. Factor in Ketek's recent woes and the reservations could be even stronger.

I would need to be confident of the product pipeline at Advanced Life Sciences (ADLS) in order to invest in it. I would not be buying the company based on the hype surrounding cethromycin. The oncology and inflammation drugs would be my focus regarding this particular stock, and they are not far enough along in the FDA process to garner my attention.