Shares have shot up to 6 a share on May 1, from a 52-week closing low of 3.40 on Mar. 3, 2009. On Aug. 1, 2008, the stock had been much higher, streaking to a 52-week closing high of 10.12. So the bulls are optimistic the stock could bounce up some more, to the 10 to 11 level in 12 months.
I will be looking to buy shares on Monday a the current level of 6.39/share. As always, I will be hedging the shares by writing covered call options, particularly June strike 5 and 6. Strike 5 pays 1.60/contract which yields about .20/share in intrinsic time value, while strike 6 pays 1.00/contract for a .60/share intrinsic time value!
On Apr. 24, the FDA approved one of Medarex's products developed in partnership with (JNJ) called "Simponi," as a once-a-month subcutaneous treatment for moderate-severe rheumatoid arthritis. In December 2008, J&J got approval from Canada to market another Medarex drug called Stelara, for treatment of severe plaque psoriasis in adults. And in January 2009, the European Commission gave its approval for the same drug. Stelara is still under review by the FDA for the U.S. market. Medarex had more than 50 partnerships with pharmaceutical and biotech companies to jointly develop and commercialize products, including Pfizer (PFE), Amgen (AMGN), Bristol-Myers Squibb (BMY), J&J, Eli Lilly (LLY), (ABT), Human Genome Sciences (HGSI), and Novartis (NVS).