On Friday, biotech stocks Oxygen Biotherapeutics (NASDAQ: OXBT), NuPathe (NASDAQ: PATH) and Adeona Pharmaceuticals (NYSEAMEX: AEN) were hot. Specifically, Oxygen Biotherapeutics (OXBT) rose 28.89%, NuPathe (PATH) rose 11.98% and Adeona Pharmaceuticals (AEN) rose 8%. However, hot biotech stocks have a way of becoming cold rather quickly for unwary investors – especially if a new treatment fails to work, the FDA fails to give a green light or if the company simply runs out of both time and money. Hence, should investors or traders be taking a close look at biotech stocks Oxygen Biotherapeutics (OXBT), NuPathe (PATH) and Adeona Pharmaceuticals (AEN)? Here is a closer look at all three biotech stocks to help you decide on an investment strategy:Oxygen Biotherapeutics (NASDAQ: OXBT)Oxygen Biotherapeutics is engaged in the business of developing biotechnology products with a focus on oxygen delivery to tissue. On Friday, Oxygen Biotherapeutics surged 28.89% to $1.74 (OXBT has a 52 week trading range of $1.30 to $3.55 a share) for a market cap of $47.67 million on no apparent news. However, Oxygen Biotherapeutics did report fiscal 2Q2012 results on Friday a week ago. Specifically, Oxygen Biotherapeutics reported net revenue of $95,159 due to direct cost reimbursements for work performed under studies funded by the US Army and a net loss of $2,929,923. Otherwise and for the previous four quarters, Oxygen Biotherapeutics reported revenues of $61k, $59k, $227k and $63k along with net losses of $2,930k, $2,869k, $2,850k and $2,544k. As of October 31, 2011, Oxygen Biotherapeutics had roughly $2 million in cash on hand to cover $2,096k in current liabilities and $6,178k in long term debt – which also helps to explain why the OXBT has announced a $7.5 million private placement with two unnamed institutional investors that will keep the company funded until the end of 2012 while the proceeds will be specifically used to fund further development of Oxycyte, an experimental treatment for traumatic brain injury that’s in phase 2 clinical trials. Nevertheless, investors should be aware of one cloud hanging over Oxygen Biotherapeutics: Its former Chairman and CEO was terminated in August following an internal investigation that concluded he had both lied about his academic background and had conducted undisclosed securities deals that he also tried to cover up.
NuPathe (NASDAQ: PATH)NuPathe is a specialty pharmaceutical company focused on the development and commercialization of therapeutics for diseases of the central nervous system (including neurological and psychiatric disorders).
On Friday, NuPathe rose 11.98% to $1.87 (PATH has a 52 week trading range of $1.52 to $9.74 a share) for a market cap of $27.58 million on no apparent news. Hence, investors should note that NuPathe has reported revenues of zero (most recent quarter), zero, zero and $650k along with net losses of $7,443k (most recent quarter), $6,464k, $3,723k and $6,174k. In addition and as of September 30, 2011, NuPathe had $29,991k in cash on hand to cover $12,461k in current liabilities and $7,537k in long term debt. However, what will ultimately make or break NuPathe is its migraine patch Zelrix – which the FDA refused to approve back in August over concerns about safety, chemistry and manufacturing. NuPathe will be filing a new request to have Zelrix approved during the first six months of 2012 and given that the company has no other drugs on the market, the company is pretty much rolling the dice on this one questionable product – something that might make investors nervous.
Adeona Pharmaceuticals (NYSEAMEX: AEN)Adeona Pharmaceuticals is a biotech focused on the development of synthetic DNA-based therapeutics and innovative disease-modifying medicines for serious illnesses. On Friday, Adeona Pharmaceuticals rose 8% to $1.35 (AEN has a 52 week trading range of $0.42 to $2.25 a share) for a market cap of $38.08 million. Earlier last week, Adeona Pharmaceuticals announced that it will change the company’s name to Synthetic Biologics, Inc. in order to better reflect the fact that the company has entered into the synthetic biology area. Specifically and back in November, Adeona Pharmaceuticals had announced that it and Intrexon Corporation had entered into a worldwide exclusive channel collaboration for the development and commercialization of a synthetic DNA-based therapy that will be used to treat pulmonary arterial hypertension (PAH). Otherwise, investors should note that Adeona Pharmaceuticals has reported revenues of $293k (most recent quarter), $356k, $323k and $620k for the past four quarters along with net losses of $1,098k (most recent quarter), $1,680k, $2,186k and $871k. Adeona Pharmaceuticals also reported having $4,609k in cash and $2,866k in short-term investments to cover $234k in current liabilities – which may not be enough funds to last the company until the end of next year. However, traders and investors with a stomach for risk might want to take a closer look at Adeona Pharmaceuticals’ charts as its up around 50% since late November on news that one of the company’s drug treatments has met its primary outcome without any safety issues in a Phase I/II safety study.
NuPathe (NASDAQ: PATH)NuPathe is a specialty pharmaceutical company focused on the development and commercialization of therapeutics for diseases of the central nervous system (including neurological and psychiatric disorders).
On Friday, NuPathe rose 11.98% to $1.87 (PATH has a 52 week trading range of $1.52 to $9.74 a share) for a market cap of $27.58 million on no apparent news. Hence, investors should note that NuPathe has reported revenues of zero (most recent quarter), zero, zero and $650k along with net losses of $7,443k (most recent quarter), $6,464k, $3,723k and $6,174k. In addition and as of September 30, 2011, NuPathe had $29,991k in cash on hand to cover $12,461k in current liabilities and $7,537k in long term debt. However, what will ultimately make or break NuPathe is its migraine patch Zelrix – which the FDA refused to approve back in August over concerns about safety, chemistry and manufacturing. NuPathe will be filing a new request to have Zelrix approved during the first six months of 2012 and given that the company has no other drugs on the market, the company is pretty much rolling the dice on this one questionable product – something that might make investors nervous.
Adeona Pharmaceuticals (NYSEAMEX: AEN)Adeona Pharmaceuticals is a biotech focused on the development of synthetic DNA-based therapeutics and innovative disease-modifying medicines for serious illnesses. On Friday, Adeona Pharmaceuticals rose 8% to $1.35 (AEN has a 52 week trading range of $0.42 to $2.25 a share) for a market cap of $38.08 million. Earlier last week, Adeona Pharmaceuticals announced that it will change the company’s name to Synthetic Biologics, Inc. in order to better reflect the fact that the company has entered into the synthetic biology area. Specifically and back in November, Adeona Pharmaceuticals had announced that it and Intrexon Corporation had entered into a worldwide exclusive channel collaboration for the development and commercialization of a synthetic DNA-based therapy that will be used to treat pulmonary arterial hypertension (PAH). Otherwise, investors should note that Adeona Pharmaceuticals has reported revenues of $293k (most recent quarter), $356k, $323k and $620k for the past four quarters along with net losses of $1,098k (most recent quarter), $1,680k, $2,186k and $871k. Adeona Pharmaceuticals also reported having $4,609k in cash and $2,866k in short-term investments to cover $234k in current liabilities – which may not be enough funds to last the company until the end of next year. However, traders and investors with a stomach for risk might want to take a closer look at Adeona Pharmaceuticals’ charts as its up around 50% since late November on news that one of the company’s drug treatments has met its primary outcome without any safety issues in a Phase I/II safety study.
No comments:
Post a Comment