Bubble talk, biotech IPO setbacks plus news about small cap biotechs like Intrexon Corp (NYSE: XON) and TNI BioTech (OTCMKTS: TNIB) have dominated biotech news this week or in recent weeks. Just consider the following news:
Why There is No Biotech Bubble & Where to Look for Value in Biotech. Marshall Gordon, the Director and senior health-care analyst of ClearBridge Investments, was recently interviewed by Barron's where he stated his belief that there is no biotech bubble because biotech stocks have delivered new drugs and have shown an ability to innovate. With that said, he added that the sector got ahead of itself while some biotechs suffered setbacks plus hedge funds decided to trim risk from their portfolios. Nevertheless, Marshall likes or is watching mid cap biotechs BioMarin Pharmaceutical Inc (NASDAQ: BMRN) and Pharmacyclics, Inc (NASDAQ: PCYC) along with small cap biotechs Pacira Pharmaceuticals Inc (NASDAQ: PCRX) and Clovis Oncology Inc (NASDAQ: CLVS). He also added that recent biotech IPOs have been lesser quality names than earlier offerings. A Trio of Biotech IPO Setbacks. FierceBiotech has summarized how a trio of biotech IPO have suffered setbacks. Specifically, Relypsa (NASDAQ: RLYP), a late-stage biotech developing a treatment for hyperkalemia, slashed its asking price on 6.9 million shares to $12 a share to raise $82 million from a range of $16 to $19 a share while Xencor (NASDAQ: XNCR), a biotech developing antibodies for severe autoimmune/allergic diseases and cancer, has dropped its IPO price to $7 a share to raise $75 million from a range of $14 to $16. Meanwhile, Celladon, which is developing a first-in-class gene therapy for patients with systolic heart failure, has postponed its IPO citing poor market conditions. Coming Biotech IPOs. Nevertheless, FierceBiotech has noted that GeNO Healthcare (NASDAQ: GNO) is looking to raise $50 million for its new, patient-friendly approach for delivering inhaled nitric oxide on the go plus Dutch biotech uniQure is apparently positioning itself to go public after pioneering the world's first approved gene therapy. David Einhorn Likes Intrexon Corp. Greenlight Capital Inc, a hedge fund managed by billionaire David Einhorn, has added 2,176,868 shares of small cap Intrexon Corporation, a biotech company that issued stock to the public last August. Intrexon Corporation is a biotechnology company focused on collaborating with companies in Health, Food, Energy and the Environment to create biologically based products. It should be mentioned that Intrexon Corporation reported net income of $15.4 million verses a net loss of $20.5 million last week and that the IPO raised approximately $168.3 million. TNI BioTech. Small cap TNI BioTech, which acquires patents, develops treatments, markets and licenses immunotherapies for the treatment of cancer, HIV/AIDS and autoimmune diseases, has been producing a steady stream of news lately. For starters, TNI BioTech recently announced that its subsidiary, TNI BioTech International, Ltd., has a distribution agreement with a Nigerian company called AHAR Pharma to market Lodonal™ in Nigeria for the treatment of autoimmune diseases and cancer. TNI BioTech says the deal will generate just over $53,000,000 in gross revenue for the company in 2014 with approximate $21,000,000 in available cash flow to meet TNIB's financial clinical trial commitments plus AHAR Pharma has pre-paid for the API necessary for the soft launch and has committed to purchase a minimum of $1,000,000 worth of capsules between now and January 2014. In addition, TNI BioTech has announced a manufacturing and supply agreement with Laboratorios Ramos for the production of Low Dose Naltrexone ("LDN") and has provided a financing update which noted the receipt of $826,250 as consideration for the exercise of previously-issued warrants and $531,250 for the purchase of common stock under the Private Placement (for an aggregate sum of $1,357,500).
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