Very Few 52-Week Highs in BioHealth (ACOR, ALTH, ARIA, AUXL, KERX, NPSP, PPDI, PPHM, PBE, PRX, SUPG)

April 15, 2010 · Filed Under daily, Financial · 1 Comment 

The market has been putting new highs and new highs and yesterday there were about 1700 stocks (including warrants, ETFs, and other publicly traded non-common entities).  What is interesting is that biotech and pharma stocks are few and far between that are actually putting in new 52-week highs.  Many of the key biotechs are having “issues” and many are very far from 52-week highs.  We compiled a brief list today of the biotechs and related pharma stocks that we saw hitting 52-week highs via name, exchange-ticker, the high, the last print, the change, and the volume:

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More Biotech Buyout or M&A Targets (OSIP, VRTX, AUXL, ITMN, HGSI, CELG, DNDN, ENZN, FACT, PBE, XBI)

March 1, 2010 · Filed Under Cancer, Financial, M&A · 1 Comment 

After today’s hostile Astellas offer for OSI Pharmaceuticals (NASDAQ: OSIP), we have investors and traders alike looking for ‘the next takeover target’ in biotech.  Buy now you know that there are many pitfalls in simply looking for biotech stocks to buy because they will be taken over.  We have taken a look through our own recent stocks noted as takeover candidates and even gone through some sites of our partners looking through potential takeover candidates in the space.

Morningstar just last week had a short video with some key potential buyout targets in the biotech space.  It noted Vertex Pharmaceuticals Incorporated (NASDAQ: VRTX), Auxilium Pharmaceuticals Inc. (NASDAQ: AUXL), and InterMune Inc. (NASDAQ: ITMN).  Those are all names that have come up as takeout targets before.

But two that are on Morningstar’s list for buyouts are Human Genome Sciences Inc. (NASDAQ: HGSI) and Celgene Corporation (NASDAQ: CELG) for its REVLIMID franchise.  The problem with Human Genome is that it is in the same boat we have addressed on multiple occasions: its size got away from the potential realm of buyers.  And Celgene has just become too big at a $28 billion market cap for most potential buyers to consider it and the sales growth from $2.689 billion in 2009 is expected to go to $3.26 billion in 2010 and $3.75 billion in 2011 per Thomson Reuters estimates.

After looking around elsewhere, we went back to some Dendreon Corp. (NASDAQ: DNDN) rumors from last month we covered.  This was based somewhat on options trading, and we think this company may have to wait for a suitor.  Taking the risk of buying the company out before the FDA approves PROVENGE for advanced prostate cancer is something companies are seeming to shy away from.

Enzon Pharmaceuticals, Inc. (NASDAQ: ENZN) is another name that comes up routinely in the rumor mill.  We noted this one hitting 52-week highs in January on fresh rumors.

Facet Biotech Corporation (NASDAQ: FACT) has also fought off attempts from Biogen Idec (NASDAQ: BIIB) as a new add-on for its MS franchise.  Biogen has been rebuffed and it supposedly will not have an interest anymore.

ETF investors are chasing up names in the sector as well.  PowerShares Dynamic Biotech & Genome (NYSE: PBE) is up 4% at $18.48 and the SPDR S&P Biotech (NYSE: XBI) is up 4.7% at $58.98.

Jon C. Ogg

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