While the bears generally controlled the last day of August trading, good news for POZEN (POZN), Encore Wire (WIRE) and Spectrum Pharmaceuticals (SPPI) brought in some brave bullish traders who were also encouraged by the news that the Federal Reserve has made $14 billion in profits on loans made in the last two years. The Fed earned approximately $19 billion from interest and fees charged to institutions that tapped 'liquidity facilities' during the credit crisis.
Gaining 6.96% ($0.45) in mid-session is POZEN Inc., (POZN) http://www.pozen.com/ currently trading in the $6.92 range on the Nasdaq. Bio-Pharma POZN has a new market cap of $206 million. POZN has a 3-Month average daily trading volume of 74,230 shares and topped 101,793 shares traded by noon EST.
POZN management said today the Company received a $10 million payment from partner AstraZeneca (AZN on the FTSE) while the Food and Drug Administration reviews its application for Vimovo, which is aimed at preventing gastric ulcers in patients with chronic pain. London-based AstraZeneca and Chapel Hill, N.C.-based POZN have been developing the drug since 2006.
POZN asked the FDA to review the application in June and expected the milestone payment when the agency agreed to conduct the review. The drug is a combination of the painkiller naproxen and esomeprazole magnesium, the active pharmaceutical ingredient in AstraZeneca's top-selling ulcer drug and heartburn medicine Nexium.
POZN also has a development and commercialization alliance with GlaxoSmithKline (NYSE:GSK) for Treximet which is used for the acute treatment of migraine attacks.
At $6.92, POZN is beneath its 52-week high of $12.34 set on 09-22-08 and above its 52-week low of $4.50 set on 03-06-09. At $6.92, POZN is below both its 50-day and 200-day moving averages. POZN is widely held by institutions and its shares out versus float ratio is near-parity.
Gaining 7.63% ($1.68) this morning on two pieces of good news is Encore Wire Corp., (WIRE) http://www.encorewire.com/ currently trading in the $24 range on the Nasdaq. WIRE has a new market cap of $552 million. WIRE has a 3-Month average daily trading volume of 146,562 shares and easily passed 175,562 shares traded in early trading.
The good news for WIRE came on Friday: The Company declared a regular quarterly dividend of 2 cents per share; payable Oct. 16 to shareholders of record Oct. 2 and WIRE will replace Axsys Technologies Inc. (AXYS) in the S&P SmallCap 600 after the close of trading on a date to be announced. Good exposure news for WIRE.
WIRE manufactures copper electrical building wire and copper cable for the residential, commercial, and industrial construction industries.
At $24, WIRE is at its 52-week high of $24 set on 04-20-09 and is far above its 52-week low of $13.49 set on 11-20-008. At $24, WIRE is ahead of both its 50-day and 200-day moving averages. WIRE has trailing twelve month revenues of $780 million and a trailing twelve month diluted EPS of $1.29. WIRE is widely held by insiders. Its shares out versus float ratio is at parity and the stock is very stable.
Gaining over 6.75% ($0.52) this morning is Spectrum Pharmaceuticals Inc., (SPPI) http://www.spectrumpharm.com/ currently trading on the Nasdaq in the $8.21 range. SPPI has a new market cap of $344 million. SPPI has a 3-Month average daily trading volume of 1,775,420 shares and it surpassed 2,127,407 shares traded today by mid-session.
SPPI has an alliance with Allergan (NYSE:AGN) and there has been quite a bit of speculation lately about AGN outright buying up SPPI. I believe that's added fuel to recent positive outlooks on the Company. Beacon Equity issued a report on Aug 25 that noted, "If approved by the U.S. Food and Drug Administration (FDA), the market for SPPI's drug candidate Zevalin could reach more than $1 billion at its market saturation." That's what investors want to hear.
The SPPI Aug 13 Q2 2009 report pointed out that SPPI had a $106 million in cash on hand and consolidated revenue of $22.3 million, which was comprised of product sales of $18.1 million; $5.9 million from ZEVALIN and $12.2 million from FUSILEV and $4.2 million attributable to the amortization of the Allergan licensing fee SPPI receives.
SPPI is a commercial-stage biotechnology company with a focus on oncology. In the trial pipeline, SPPI is also developing apaziquone for the treatment of non-muscle invasive bladder cancer. Its phase II products include Ozarelix, a drug being investigated for benign prostatic hypertrophy (BPH), a non-cancerous enlargement of the prostate, and hormone dependent prostate cancer; and Ortataxel, a third-generation taxane. In addition, SPPI has exclusive worldwide rights to the drugs Renazorb and Renalan and related compounds.
At $8.21, SPPI is seven cents past its 52-week high of $8.15 set on 06-30-09 and far, far above its 52-week low of $0.55 set on 10-16-08. At $8.21, SPPI is ahead of both its 50-day and 200-day moving averages. SPPI is widely held by institutions. Its shares out versus float ratio is at parity and the stock is very stable.