The market has staged a huge bounce-back rally this week after two weeks of brutal declines.
Teva Pharmaceuticals gets a boost from the Oracle of Omaha and Apricus Biosciences implodes after CRL from the FDA.
All the other notable news, events and analyst ratings from across the sector as well as a Spotlight feature on Zafgen are in the paragraphs below.
This idea was discussed in more depth with members of my private investing community, The Biotech Forum.
It is amazing how complete is the delusion that beauty is goodness.”
― Leo Tolstoy, The Kreutzer Sonata
The market has staged a huge bounce back rally this week after two weeks of brutal declines. After just passing into official 'correction' territory late last week for the first time in two years, equities have come roaring back this week. The S&P looks set to have its best weekly performance in 15 months and the NASDAQ since 2014. The main biotech ETFs have rallied with the overall market and have posted solid gains throughout the week. Investors will be hoping to close out a stellar week on a high note in trading today.
Beaten-down generic drug leader Teva Pharmaceuticals (TEVA) picked up a well-known investor recently. New filings show that Warren Buffett has picked up an over-$350 million stake in the beleaguered firm that is undergoing a massive restructuring and dealing with multiple headwinds. The shares rallied on this news on Thursday.
Going in the opposite direction today will be Apricus Biosciences (APRI), which looks set to lose the majority of its market value in trading today. The FDA rejected its market application for its topical erectile dysfunction cream Vitaros with a Complete Response Letter (CRL). The letter cited deficiencies in Chemistry, Manufacturing and Control and safety concerns specific the current formulation. Company management came out and stated Apricus will review the contents of the CRL and see what it can potentially due to address these concerns in the months ahead. They also promised an update to investors by March. Judging from the early market action, most are not waiting around for that update.
Pacira Pharmaceuticals (PCRX) is also taking a hit in early trading today. The Ad Comm Panel split its vote (4 for and 6 against) on recommendation for its anesthetic drug EXPAREL. The half-dozen dissenters believe that more research is needed to further support the proposed new indication. EXPAREL's scheduled PDUFA date is April 6th. The stock is down some 15% in early trading today on the news.
AMAG Pharmaceuticals (AMAG) has had a big February so far. On February 5th, the FDA approved the expansion of the company's drug Feraheme for another indication. Wednesday, the FDA approved Makena. This is a subcutaneous auto-injector to reduce the risk of preterm birth in pregnant women who have previously delivered a preterm baby. It was developed by partner Antares Pharma (ATRS). Janney Montgomery upgraded the stock from Neutral to Buy on this news. Several other analyst chimed in yesterday as well including Jefferies (Buy, $18 price target), Cowen & Co. (Hold, $20 price target) and B Riley FBR (Hold, $16 price target)
Adverum Biotechnologies (ADVM) was assumed as a Buy at Piper Jaffray Thursday with a $12 price target. Jaffray's analyst believes the company
has a 'differentiated, risk-mitigated approach' in gene therapy and sees the stock as a "clear value buy."
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