Keryx an Attractive Pick as Stock Dips

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Shares of Keryx Pharmaceuticals (NASDAQ:KERX) dipped below the $5 mark again after having spent the better part of the last two months trading above that level.

The company's attractive pipeline has had it on the radars of biotech investors for the past few years as the stock climbed from the dollar level to nearly six bucks as its two main products, Perifisone and Zerenex, have advanced to late stage trials.

A brief blip on the screen occurred after a stock offering was announced early last month, but the $5 level has, for the most part, held since then. Aside from some short term volatility, it's my opinion that the $5 level is only a resting stop before the stock starts to trek higher.

KERX's two products, Zerenex for kidney disease and Perifisone as an anti-cancer agent, have both been highly successful in trials thus far, and hold significant market potential over the long run.

As the Phase III trials near an end, with results due next year, KERX should easily attain the price targets recently set by analysts MLV Capital and Oppenheimer, which slapped tags of "Buy" and "Outperform" on the stock, respectively.

Keryx is also a solid takeover candidate, in my opinion, as big pharma is on the prowl of late, looking to boost late stage pipelines as many key drugs come off market in the next few years.

The Keryx road show is also underway, with the company having presented at various health care and investor conferences in 2011.

With the potential for some fairly significant price appreciation leading into the trial results, dips like this one to below the $5 mark might be worth taking advantage of.

This is a developing story worth keeping an eye on.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.