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Shares 6 Shares Unworthy Of Biotech Fluff Market
Biotech shares are off for their best start in greater than a decade, with the actual Nasdaq Biotechnology Catalog
Biotech fluff markets are fun however they turn quickly in to biotech bubbles whenever ebullient investors get cocky and begin believing that these types of risky, volatile stocks only increase. It may appear to be a distant memory however it was only final August when biotech stocks tanked and also the sector was un-investable. Don’ capital t believe biotech shares will ever drop again? Guess once again, they will. These people always do.
Proof of a biotech bubble abounds. My Twitter stream is turning out to be a raucous celebration of self-congratulatory twitter posts from traders that fancy themselves biotech stock-picking geniuses. Much more telling: Valuations in certain high-quality stocks are beginning to defy logic as the sector’ s garbage shares are propelled higher on the noxious fuel mixture of momentum, speculation as well as ignorance.
About the following pages, I check out six biotech as well as drug stocks along with valuations reaching unsustainable amounts or that, with regard to various reasons, don’ t deserve an invitation towards the biotech bull market party whatsoever.
Cytori Therapeutics
Share return since January. 1: 96 percent
Cytori’ utes
To put it simply, Cytori is having problems convincing doctors within Europe and Japan to purchase their expensive stem-cell body fat graft machines. As well as when doctors do purchase the device, they’ re not utilizing it very much, or whatsoever, because procedures aren’ capital t being reimbursed. (Most likely simply because Cytori has yet to supply convincing clinical information to prove which stem cell-enriched stomach fat is superior by any means to “ regular” body fat. )
The actual U. S. continues to be a closed marketplace for Cytori simply because regulators here won’ t permit the company’ s machine to become sold without first demonstrating a genuine clinical benefit with regard to patients.
Interim, Cytori continues in order to burn cash as well as raise money although dilutive stock sales so that its unprofitable company afloat. Simultaneously, the organization is funding big, expensive clinical tests in indications such as heart repair subsequent heart attack which will take years to completely enroll.
Regeneron Drugs
Share return since January. 1: 84 percent
I was about the fence about such as Regeneron
Galena Biopharma
Share return since January. 1: 168 percent
The actual prevailing “ wisdom” appears to be that Galena Biopharma
The Galena drug under consideration is NeuVax, a cancer immunotherapy made to stimulate the defense mechanisms in patients along with breast cancer which express low amounts of a protein referred to as Her-2. Similar patients that express high amounts of Her-2 are usually treated with Roche’ utes antibody cancer medication Herceptin.
Data in the NeuVax phase II study happen to be presented (and offered again) through a lot of updates and retrospective discusses various patient subgroups how the overall results ” NeuVax didn't significantly reduce breasts cancer recurrence or even improve survival ” happen to be virtually whitewashed. Rather, Galena pins it's phase III expectations on assumptions culled through rosier retrospective discusses small subgroups of patients have been “ optimally dosed” or who've low levels associated with Her-2 expression.
NeuVax isn’ capital t new. The therapy may be kicking around for a long time under the control of the private drug organization, Apthera, which conducted the sooner studies and drafted plans for that phase III research. Last year, RXi Pharmaceutical acquired Apthera as a swap for 4. 8 zillion shares of RXi share, worth a little more than $7 zillion. At the time from the purchase, RXi have been focused (unsuccessfully) upon developing RNAi therapeutics. RXi and it is RNAi drugs are actually gone, transformed into Galena having a more investor-friendly breasts cancer immunotherapy getting into a pivotal stage III study.
The number of high quality, late-stage cancer medicines get acquired just for $7 million?
Human being Genome Sciences
Share return since January. 1: 48 percent
In the event that Dendreon
Dendreon has been doing a good job of having Provenge back upon course, or a minimum of demonstrating some early proof of a rebound along with strong fourth-quarter 2011 product sales. But has Human being Genome done something to suggest it may do the exact same with Benlysta? Not really yet. Not actually close. The company whiffed within the fourth quarter as well as analyst estimates for 2012 continue to be too high depending on current prescription developments. Benlysta sales may improve (the drug’ s performance may hardly get worse) however Human Genome includes a very long approach to take before Benlysta sales reach a place where a $2 billion-plus valuation is sensible.
Entremed
Share return since January. 1: 198 percent
The biotech bubble wouldn’ t be complete with no new crop associated with investors “ discovering” Entremed
Entremed’ s record associated with drug-development futility is hard to complement yet the organization survives, always lacking cash, always transitioning or even re-inventing itself every couple of years. And like clockwork, whenever a new biotech bubble arrives, investors who understand nothing of Entremed’ s checkered history start purchasing the stock again, insisting this time, Entremed would have been a winner.
BioSante Drugs
Share return since January. 1: 110 percent
All you should know about the bio-bubble could be summed up within BioSante Pharmaceuticals
Libigel’ utes a bust. Bio-T-Gel is actually irrelevant. That simply leaves BioSante’ s pipeline associated with cancer vaccines, that have been picked off the actual ash heap through Cell Genesys in years past after trials within prostate cancer as well as lung cancer blew upward. Likelihood of BioSante’ s creating a real go within cancer vaccine improvement: Miniscule.
BioSante should turn off and return it's cash to investors. That this failure of the company is surging this season is proof that the biotech sector market off is arriving. Get ready for this.
Extra News: Health Treatment and State associated with Biotech
Extra Views: Cramer ” Biogen Idec’ utes Profit Pipeline
______________________________
CNBC Information Pages:
______________________________ Disclosures:
TheStreet’ utes editorial policy forbids staff editors, reporters and experts from holding positions in a individual stocks.
Please note
View this post on my blog: http://stocktips.valuegov.com/shares-6-shares-unworthy-of-biotech-fluff-market/
Biotech shares are off for their best start in greater than a decade, with the actual Nasdaq Biotechnology Catalog
Biotech fluff markets are fun however they turn quickly in to biotech bubbles whenever ebullient investors get cocky and begin believing that these types of risky, volatile stocks only increase. It may appear to be a distant memory however it was only final August when biotech stocks tanked and also the sector was un-investable. Don’ capital t believe biotech shares will ever drop again? Guess once again, they will. These people always do.
Proof of a biotech bubble abounds. My Twitter stream is turning out to be a raucous celebration of self-congratulatory twitter posts from traders that fancy themselves biotech stock-picking geniuses. Much more telling: Valuations in certain high-quality stocks are beginning to defy logic as the sector’ s garbage shares are propelled higher on the noxious fuel mixture of momentum, speculation as well as ignorance.
About the following pages, I check out six biotech as well as drug stocks along with valuations reaching unsustainable amounts or that, with regard to various reasons, don’ t deserve an invitation towards the biotech bull market party whatsoever.
Cytori Therapeutics
Share return since January. 1: 96 percent
Cytori’ utes
To put it simply, Cytori is having problems convincing doctors within Europe and Japan to purchase their expensive stem-cell body fat graft machines. As well as when doctors do purchase the device, they’ re not utilizing it very much, or whatsoever, because procedures aren’ capital t being reimbursed. (Most likely simply because Cytori has yet to supply convincing clinical information to prove which stem cell-enriched stomach fat is superior by any means to “ regular” body fat. )
The actual U. S. continues to be a closed marketplace for Cytori simply because regulators here won’ t permit the company’ s machine to become sold without first demonstrating a genuine clinical benefit with regard to patients.
Interim, Cytori continues in order to burn cash as well as raise money although dilutive stock sales so that its unprofitable company afloat. Simultaneously, the organization is funding big, expensive clinical tests in indications such as heart repair subsequent heart attack which will take years to completely enroll.
Regeneron Drugs
Share return since January. 1: 84 percent
I was about the fence about such as Regeneron
Galena Biopharma
Share return since January. 1: 168 percent
The actual prevailing “ wisdom” appears to be that Galena Biopharma
The Galena drug under consideration is NeuVax, a cancer immunotherapy made to stimulate the defense mechanisms in patients along with breast cancer which express low amounts of a protein referred to as Her-2. Similar patients that express high amounts of Her-2 are usually treated with Roche’ utes antibody cancer medication Herceptin.
Data in the NeuVax phase II study happen to be presented (and offered again) through a lot of updates and retrospective discusses various patient subgroups how the overall results ” NeuVax didn't significantly reduce breasts cancer recurrence or even improve survival ” happen to be virtually whitewashed. Rather, Galena pins it's phase III expectations on assumptions culled through rosier retrospective discusses small subgroups of patients have been “ optimally dosed” or who've low levels associated with Her-2 expression.
NeuVax isn’ capital t new. The therapy may be kicking around for a long time under the control of the private drug organization, Apthera, which conducted the sooner studies and drafted plans for that phase III research. Last year, RXi Pharmaceutical acquired Apthera as a swap for 4. 8 zillion shares of RXi share, worth a little more than $7 zillion. At the time from the purchase, RXi have been focused (unsuccessfully) upon developing RNAi therapeutics. RXi and it is RNAi drugs are actually gone, transformed into Galena having a more investor-friendly breasts cancer immunotherapy getting into a pivotal stage III study.
The number of high quality, late-stage cancer medicines get acquired just for $7 million?
Human being Genome Sciences
Share return since January. 1: 48 percent
In the event that Dendreon
Dendreon has been doing a good job of having Provenge back upon course, or a minimum of demonstrating some early proof of a rebound along with strong fourth-quarter 2011 product sales. But has Human being Genome done something to suggest it may do the exact same with Benlysta? Not really yet. Not actually close. The company whiffed within the fourth quarter as well as analyst estimates for 2012 continue to be too high depending on current prescription developments. Benlysta sales may improve (the drug’ s performance may hardly get worse) however Human Genome includes a very long approach to take before Benlysta sales reach a place where a $2 billion-plus valuation is sensible.
Entremed
Share return since January. 1: 198 percent
The biotech bubble wouldn’ t be complete with no new crop associated with investors “ discovering” Entremed
Entremed’ s record associated with drug-development futility is hard to complement yet the organization survives, always lacking cash, always transitioning or even re-inventing itself every couple of years. And like clockwork, whenever a new biotech bubble arrives, investors who understand nothing of Entremed’ s checkered history start purchasing the stock again, insisting this time, Entremed would have been a winner.
BioSante Drugs
Share return since January. 1: 110 percent
All you should know about the bio-bubble could be summed up within BioSante Pharmaceuticals
Libigel’ utes a bust. Bio-T-Gel is actually irrelevant. That simply leaves BioSante’ s pipeline associated with cancer vaccines, that have been picked off the actual ash heap through Cell Genesys in years past after trials within prostate cancer as well as lung cancer blew upward. Likelihood of BioSante’ s creating a real go within cancer vaccine improvement: Miniscule.
BioSante should turn off and return it's cash to investors. That this failure of the company is surging this season is proof that the biotech sector market off is arriving. Get ready for this.
Extra News: Health Treatment and State associated with Biotech
Extra Views: Cramer ” Biogen Idec’ utes Profit Pipeline
______________________________
CNBC Information Pages:
______________________________ Disclosures:
TheStreet’ utes editorial policy forbids staff editors, reporters and experts from holding positions in a individual stocks.
Please note
View this post on my blog: http://stocktips.valuegov.com/shares-6-shares-unworthy-of-biotech-fluff-market/
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