US Biotech/Pharma Sector Update: March 3

Mar. 03, 2017 5:07 PM ET
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Money manager, Biotech, Contrarian

Contributor Since 2012

Money Manager. Registered Investment Advisor. 

M.B.B.S., M.D., MBA Finance (NYU-Stern). 

Founder of Vasuda Healthcare Analytics, a catalyst-driven biotechnology/pharmaceuticals-focused service. Ranked 5-star on Tipranks. SumZero contributor.

Scynexis (SCYX) stock was down today after FDA requested the company not to initiate new trials of IV SCY078 till safety review is completed. The sell-off is irrational. Needham reiterated Buy rating with PT=$10 while Guggenheim also issued Buy rating with PT=$15. Read our take.

Oncosec (ONCS) stock was up today after a positive article on the Read our take.

XBiotech (XBIT) offered $31 million of common stock at $13/share. aTyr Pharma's (LIFE) Resolaris received Orpan drug designation in the Europe for treatment of limb girdle muscle dystrophy. Prothena (PRTA) offered 2.7 million shares at $57.50 each. Sanofi (SNY) and AstraZeneca will collaborate to develop a monoclonal antibody against RSV F protein in infants.

Hutchinson China Meditech (HCM) shares were up after announcing succesful phase 3 trial of fruquinitinib, a selective VEGFR inhibitor in colon cancer. Eli Lilly (LLY) owns the commercialization rights to the drug.

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Selected analyst ratings from today:

Karyopharm (KPTI): Jefferies, Buy with PT=$14.

Aurinia Pharmaceuticals (AUPH): FBR Capital, Buy with PT=9.

Nektar Therapeutics (NKTR): Jefferies, Buy with PT=$17.

Mylan (MYL): Guggenheim, Neutral, no PT given.

Intercept Pharma (ICPT): Oppenheimer, Buy with PT=$200.

Acel Rx Pharma (ARX): RBC Capital, Buy with PT=$16.

Ovascience (OVAS), HC Wainwright, Buy with PT=$15.

Glycomimetics (GLYC): Cowen, Buy, no PT given.

Opko Health (OPK): Standpoint Research, Buy with PT=$14.

Kite Pharma (KITE): Stifel Nicholaus, downgrade to Hold, PT=$74.

Up on unusual volume: Paratek Pharmaceuticals (PRTK, has upcoming phase 3 data in mid-2017), Dermira (DERM), CytoMx Therapeutics (CTMX), Beigene (BGNE), Newlink Genetics (NLNK), Neuroderm (NDRM), Lexicon Pharmaceuticals (LXRX).

Insider transactions: no significant insider buying seen. Insider selling noted in BLUE, INSM, PRTA, CHRS.


This article represents my own opinion and is not a substitute for professional investment advice. It does not represent solicitation to buy or sell any security. Investors should do their own research and consult their financial adviser before making any investment.

Disclosure: I am/we are long ONCS, ICPT, SCYX, AUPH, KITE, PRTK, NDRM.

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