Cancer Radiation Stocks To Consider: Delcath, Spectrum And IsoRay

Includes: DCTH, ISR, SPPI
by: BuySellShort

There has been much interest in cancer stocks of late, especially those in the radiation field. Spectrum Pharmaceuticals Inc. (NASDAQ:SPPI) has been subject to buyout rumors and Delcath Systems Inc. (NASDAQ:DCTH) has seen it shares gain ahead of its PDUFA in June. Another radiation stock to consider is IsoRay, Inc. (NYSEMKT:ISR) with the current bullish sentiment in the sector. Below is a quick synopsis of each company with some near term outlooks.

1.) Spectrum Pharmaceuticals, Inc.

Spectrum offers ZEVALIN, a prescribed form of cancer therapy which combines a source of radiation with an antibody; and FUSILEV for patients with osteosarcoma after high-dose methotrexate therapy. Spectrum has been the subject of buyout rumors recently as mentioned above. The company has many other products in its pipeline but we are focusing only on its radiation angle for this article. 55% of the Spectrum float is currently short the stock. Recently we have seen high short interest stocks like Netflix (NASDAQ:NFLX) explode higher. If the stock can move above the $13.34 area shorts may be pressured to cover and that could provide support for a continued move higher.

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2.) Delcath Systems Inc.

Delcath engages in the development and clinical study of the Delcath chemosaturation system, which allows the administration of concentrated regional chemotherapy by isolating the circulatory system of the targeted organ. It delivers high doses of chemotherapeutic agents directly to the liver while limiting systemic exposure and the related side effects by filtering the blood prior to returning it to the patient. The drug has not been without issues and has had many set-backs in the past but with FDA approval rates running at 15 year highs there appears to be reason for optimism. Delcath is currently attempting to break through its 200-day moving average, currently at $1.74. A move through this level could see shares quickly recover back to the mid $2 area.

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3.) IsoRay Inc.

IsoRay is the exclusive manufacturer of Cesium-131. The pioneering brachytherapy therapy is one of the most significant advances in internal radiation therapy in 20 years. Cesium-131 allows for the precise treatment of many different cancers because of its unrivaled blend of high energy and its 9.7 day half-life (its unequaled speed in giving off therapeutic radiation).

In addition to its CMS codes, Cesium-131 is FDA-cleared and holds a CE mark for international sales in seed form for the treatment of brain cancer, prostate cancer, lung cancer, ocular melanoma cancer, colorectal cancer, gynecologic cancer, head and neck cancer and other cancers throughout the body. The treatment can be deployed using several delivery methods Inc.luding single seed applicators, implantable strands and seed sutured mesh, and several new implantable devices. The company has news today on its Metastatic Brain Cancer. The chart is hovering below its 200-day moving average with a positive MACD cross occurring today or tomorrow. The last time this occurred the stock gained 50% as you can see from the chart below.

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Cancer is one of the leading causes of death in the U.S. and as such it garners a lot of attention and investor interest. Spectrum is a play in the sector on a potential short squeeze near term. Delcath is starting to breakout now with its upcoming FDA catalyst in the coming months. IsoRay is a cancer stock that is also worth doing some research on.

Disclosure: I am long DCTH. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.