Tuesday, January 25, 2011

Briefs: CLDA, Opens the Week Running; MCET, Another One Running; BDSI, Lawsuit News; RNN, Big Buys By Teva; DDSS, Approval in Canada

Posted earlier at VFC's NEW Stock House:

CLDA:  After announcing last week that the FDA had approved Clinical Data's Vilibyrd - an antidepressant whose claim to fame will be that it doesn't interfere with the sex drive - it was off to the races on Monday morning as shares of CLDA traded up by over ten dollars, closing nearly seventy percent higher than Friday's closing price.

The company itself some and analysts predict that Vilibyrd's favorable side-effect profile gives the product a chance to make an immediate impact in an already competitive market.

While the long term still gives Clinical Data some fairly significant room to the upside, in my opinion, I'm always a fan of enjoying some of the profits to be had in price swings like this one over the short term, so congrats to shareholders of CLDA who were along for the ride and are booking nice vacations at this time.

Speculation of a buyout or partnership has also surrounded this stock over the past week, and with a product that could eventually bring in up to two billion dollars annually, there's sure to be a lot of buzz surrounding this one.

Keep an eye out for news and enjoy the profits, for those who were playing this one based on the pending FDA news.

I'm not a big fan of chasing stocks, and the most significant have already been had for the short term, so any entry here would be one with an eye towards the long term commercializiation of Vilibyrd. Any premium on a buyout may not be as much as it would have been before approval, after the already significant run-up in price.

Disclosure: No position.

MCET: After having given off indications of a pending run late last week, shares of Multicell Technologies closed the day on Monday up by nearly 50% while having spiked even higher shortly after the opening bell.
No news has yet to accompany the run - a run built on huge volume - which has inclined many (including myself) to sell a few trading shares into the upside volume in order to lock in profits just in case this is a run not built on the foundation of solid news.

MCET has realized significant runs such as this one on many occasions over the years, although each time it has retraced back to previously traded levels, hence the inclination to ensure that a few shares are sold to bank in some profits.

That said, MCET is also a penny play with potential, therefor it's worth keeping a core base of shares in the event the company announces solid news regarding the pipeline. The two candidates far enough along to create buzz are MCT-125, a treatment for fatigue in MS patients (a Phase II product) or the Ideal BioStent, which was recently purchased by Multicell's majority-owned subsidiary Xenogenics.

MCET could be setting a new bottom at just around a penny right now, but with this current run having led to a double in a very short amount of time, it's worth being aware that the run may not be sustained without news, especially if it was sparked by a mention in a penny stock news letter.

Keep an eye on this one, and congrats to those who realized some nice profit.

Disclosure:  Long MCET.

BDSI:  BioDelivery Sciences issued a press release last week refuting the claims of a recent lawsuit filed by MonoSol RX alleging patent infringement and false marketing against BioDelivery, Meda and Aveva Drug Delivery Systems.

If the BioDelivery rebuttal is to be worth its words, then MonoSol's claims are baseless and the pipeline is going to move forward without distraction. It is up to the courts, however, to decide whose argument deserves merit or not, bur for the time being I don't think that this lawsuit is a factor, until it becomes one.

BioDelivery has a promising drug delivery technology in BEMA and a promising pipeline and is still worth the look as a long term investment.

Disclosure: Long BDSI.

RNN: Shares of Rexahn saw a twenty percent jump on Monday after it was disclosed that Teva Pharmaceutical Industries purchased nearly four million dollars worth of RNN common stock in a private offering.

The shares were bought at a significant premium over the current RNN trading price, fueling Monday's run. With this offering, Teva now owns over six percent of Rexahn.

Rexahn has stated that the raised funds will be used to fund the anit-cancer compound, RX-3117, which is still in the preclinical stages of development.

Aside from 3117, Rexahn has a robust pipeline of product to potentially treat various indications, including cancer, depression and Parkinson's Disease, and is a solid long term 'Phase II' pick, in my opinion.

Any dips back towards the one dollar mark would maintain RNN as a solid buy, although it's worth noting that many 'Phase II companies' are always at threat of having to conduct a cash raising event. That said, any cushy deals like the one worked with Teva - where the offering is at a premium - should keep shareholders happy for the short term.

Disclosure: No position.

DDSS:  Labopharm announced last week that the Canadian regulatory authorities had granted the approval of OLEPTRO in the Canadian market. OLEPTRO is a once daily formulation of the antidepressant trazodone, which is intended to treat major depressive disorder (MDD).

DDSS has traded sideways for quite some time now as OLEPTRO has been slow to make headway in the market, and the Canadian approval news had little effect on the share price. Any immediate gains were instantly wiped out as Labopharm has not been drawing much interest or attention of late.

Labopharm has a solid drug delivery technology in CONTRAMID and the company has offered some promising news releases over the course of the past year, however, earnings and news have not been enough to spark a spike in price, leading to the extended period of time at or near the one dollar mark for DDSS.

Although stagnant for a while, when stocks like this one move, they move quick, so I'm still a fan of some accumulation at the dollar mark.

Disclosure: Long DDSS.

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