Scott Matusow | Jul 30, 2013 07:47AM ET
Going long ahead of certain biopharma catalysts have proven to be a very sucessfull trade this year, especially with small cap biopharmas, as many small cap companies have seen large upside moves.
Just recently, we wrote on Astex Pharma (ASTX) when the stock was trading at a little over $4.70 a share. Astex has a strong catalyst coming up for its drug, SGI-110.
The data for Astex to be released is from a randomized Phase II study of the drug in MDS and AML patients. 2 points of Data released, the first at the European Society for Medical Oncology (ESMO) in late September and the second, at the American Society of Hematology conference in December.
Since our article release, traders and investors have bet the stock up to a recent high of $5.75 on July 17th.
Biodel (BIOD) is Afrezza , Biodel seems poised to take advantage of this, as both companies are seeking to offer treatments in the same segment – fast acting insulin.
With a market cap coming of around $90M, and a well-supported recent public offering at $4.35, Biodel looks to be the next big price mover among small cap biopharmas, as news spreads and institutions roll money into the name. Considering that Humalog, which as mentioned, (along with Humilin) brings in yearly sales for Lilly of over $3.5B, it seems to us that a $90M market cap is a very under-speculated price tag.
Disclosure: Long BIOD
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