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December 31, 2013

Stock Watch: Five Companies to Keep an Eye On

Stock prices sometimes experience volatile moves, especially as a near-term catalyst event approaches.

Stock Watch: Five Companies to Keep an Eye On

  • In the developmental biopharma segment of the market that we follow daily at stockmatusow, stock prices sometimes experience volatile moves, especially as a near-term catalyst event approaches. Today we look at five companies that should see significant upward price movements in the near future.

  • Synergy Pharmaceuticals

    Click Image To Enlarge +
    Figure 1

    Synergy Pharmaceuticals (SGYP) is a biopharmaceutical company that focuses on developing drugs to treat gastrointestinal (GI) disorders and diseases. The company, whose two leading products are Plecanatide (SP-304) and SP-333, expects to release topline data from its Phase IIb IBS-C trial in the 2nd quarter 2014.

    Insiders have also been purchasing the stock this year with the most recent buy on October 29. The majority of the purchases were above the level of the stock as it is currently trading. As insiders, they have the best sense of where the stock will be going in the future and it is encouraging to see them putting their money behind the company before data release.

    The Baker Brothers, who also have a position in Synergy at about $4.23 a share, own about 2.7M shares, or approximately $12M worth. This is bullish for the company since the Baker Brothers have an excellent track record in biotech investments. We expect Synergy to reach at least $6 before data release.

  • Progenics Pharmaceuticals

    Progenics Pharmaceuticals (PGNX), which zeroes in on oncology drugs, has two upcoming catalysts. The company expects to announce data from its Phase II PSMA ADC trial at the American Society of Clinical Oncology meeting in January. Progenics also has scheduled a tentative advisory panel meeting (ADCOM) with the FDA in March (10th-11th) to review an sNDA for Relistor expanded usage in OIC (opioid induced constipation) chronic pain.

    In a December 6 press release the company’s executive vp, Prober Israel, said:

    PSMA ADC is the most advanced antibody drug conjugate in clinical development to treat prostate cancer. Based on the data seen with PSMA ADC in chemotherapy experienced patients, we have decided to explore whether this compound can also benefit men in the less clinically advanced chemotherapy naïve setting.”

    In an October 1 press release the company also stated:

    Salix Pharmaceuticals, Ltd. and Progenics Pharmaceuticals today announced that the FDA will convene an Advisory Committee on March 10-11, 2014 at which time Salix's Supplemental New Drug Application (SNDA) for RELISTOR® (methylnaltrexone bromide) Subcutaneous Injection, for opioid-induced constipation, or OIC, in patients with chronic pain will be considered. The date and agenda for the Advisory Committee will not be definitive until publication in the Federal Register.”

    Last June Progenics did a secondary offering of 8.5M shares at $4.40 a share. This raised approximately $3.48M. The underwriters also chose to purchase an additional 1.3M shares, resulting in an extra $5.2M. The company has about $75M in cash, which should be sufficient to fund operations.

    The Baker Brothers also hold a position in Progenics at $4.93 a share. They have a little over 4.2M shares.

    We believe Progenics is undervalued and could run to $6 before data release. The company stands to rake in billions if their biopharmaceutical products receive FDA approval.

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