Biotech Catalyst Trade Pick For The Week: Keryx Pharmaceuticals

Recently, we have detailed companies that have released positive Phase III data because we believe several of these companies continue to be under speculation value. Companies who have strong management, cash, and a strong pipeline can be very profitable for investors.
Keryx Pharmaceuticals (KERX) is a company that works on developing and commercializing novel therapies for the treatment of renal disease. We feel that with positive Phase III data in hand and another Phase II data release coming in the third quarter, Keryx will see a significant catalyst run in the coming months.

• Kidney Disease

Keryx's main drug in the pipeline is Zerenex, which is being tested in clinical trials to treat End State Renal Disease (ESRD) and Chronic Kidney Disease (CKD). Chronic Kidney Disease is defined as a progressive loss of renal function over a period of months or even years. The symptoms of worsening kidney function are non-specific, and may include feeling generally unwell and experiencing a reduced appetite. The severity of Chronic Kidney Disease is classified in five stages. Stage 1 is the mildest form and stage 5 is considered the most severe. Stage 5 means a patient has a very poor life expectancy if the condition is not treated. The vast majority of patients with ESRD, or stage 5 kidney disease, require dialysis and are typically in extreme danger of kidney failure. In patients with kidney disease, dietary phosphates are not properly filtered out of the blood due to the lowered renal function.

For this reason, phosphate binders are taken at meal time when dietary phosphates enter the body after eating. Drugs within this class work by simply reducing absorption of these phosphates into the body. Phosphate binders chemically bind to the phosphates in the gastrointestinal tract. This renders them insoluble and therefore non absorbable. Several types of these phosphate binding drugs have been used over the years with some becoming obsolete. Due to unwanted long-term side effects, doctors have trouble prescribing some of these treatments for an extended period of time. Aluminum-based drugs are also rarely used anymore because the absorption of aluminum in the body causes more unwanted side effects. Calcium binders are also widely used, but the prolonged use of them leads to an imbalance of calcium into the body. The most commonly prescribed phosphate binder is called a non-calcium-type binder. Since many of these drugs are becoming obsolete, we believe Keryx is set to eventually take a strong share of the market.

Investors had been skeptical of Zerenex as a viable competitor to other phosphate binders such as Sanofi's (SNY)Renagel and Renvela, until Keryx released several sets of Phase III trial data that validated the therapy as a possible more effective and better option.

• Upcoming Catalysts

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Keryx has brought three-fold returns over the past year to investors who took a chance on the Phase III results of its phosphate binder, Zerenex, being positive. The chance paid off for Keryx investors This article is intended for informational and entertainment use only, and should not be construed as professional investment advice. They are my opinions only. Trading stocks is risky -- always be sure to know and understand your risk tolerance. You can incur substantial financial losses in any trade or investment. Always do your own due diligence before buying and selling any stock, and/or consult with a licensed financial adviser.