Shares of biodefense company PharmAthene, Inc. (AMEX: PIP) soared almost 32 percent from Friday’s closing price, in morning trading on Monday after WBB Securities upgraded its rating on the stock to a Strong Buy. The tailwind for PharmAthene began last week after it was announced that the NYSE Amex LLC (NYSE Amex) determined that the Company made a reasonable demonstration of its ability to regain compliance with the NYSE Amex listing requirements and granted PharmAthene an extension until January 26, 2012 to demonstrate its compliance.
PharmAthene also caught a huge boost from last week’s news that the United States is spending up to $2.8 billion to shore up its defenses against biological warfare, according to SIGA Technologies, Inc. (Nasdaq: SIGA), the drugmaker who expects to get a government contract to supply smallpox antiviral drugs.In December 2006, PharmAthene had filed a case against SIGA pursuant to a merger agreement between the companies that was terminated in October 2006. The trial is expected to start on Jan. 3, 2011. Noble Financial Capital Markets analyst Raghuram Selvaraju expects the court case with PharmAthene to be ruled in its favor, with PharmAthene getting a percentage of SIGA’s contract with the government. Roth Capital Partners analyst Joseph Pantginis said the contract has positive implications to PharmAthene that can now identify the exact measure of potential damages.
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TheStreet.com’s James Altucher recently wrote that on the basis of this contract alone, Pharmathene would potentially make up to a billion dollars in cash earnings. “On this one catalyst I think PIP is potentially a $7 – $12 stock,” he stated in his October 15, 2010 article.
PharmAthene is also positioning its anthrax vaccine, Valortim, as a potential alternative to the existing vaccine that is administered to military personnel and individuals who work in high-risk environments. Anthrax is considered the Department of Defense’s No. 1 biological threat. The US is required to have a stockpile of 75 million doses of vaccine. Right now, the only approved supplier of doses of vaccine is EBS, which has a long-approved first-generation vaccine that requires 5 doses over 18 months and costs $120 per dose. PIP’s second-generation vaccine requires 3 doses over 60 days and costs about $45 a dose, according to PharmAthene’s Chief Executive Officer, Eric Richman.
Shares of neurological and endocrine-related drug maker, Neurocrine Biosciences, Inc. (Nasdaq: NBIX) soared as much as 16 percent from Thursday’s closing price, in morning trading on Friday on news that Jefferies & Co. had initiated coverage of the stock with a buy rating. Neurocrine shares touched a high of $7.37 per share in morning trading, up from Thursday’s closing price of $6.34.
Shares of cancer drug developer, Celldex Therapeutics, Inc. (Nasdaq: CLDX) were up as much as 22 percent from Monday’s closing price, in morning trading on Tuesday after the company announced positive data for its cancer therapy CDX-1401.
We originally covered Opexa Therapeutics in September of 09, today Opexa (Nasdaq: OPXA) shares surged as much as 23.4% to a high of $1.95 ahead of the stem cell research firm’s presentation this afternoon at the Rodman & Renshaw healthcare conference. Neil K. Warma, Opexa’s President and Chief Executive Officer will deliver a corporate presentation that will include an overview of the Company’s ongoing clinical development program for Tovaxin, the Company’s lead therapy for Multiple Sclerosis (MS).
Shares of oncology-focused drug developer, EntreMed, Inc. (Nasdaq: ENMD) were up as much as 28 percent from Wednesday’s closing price in morning trading on Thursday. The company recently announced a second quarter net loss of $4.9 million, or 62 cents per share, compared with a net loss of $3.1 million, or 46 cents per share for the same period a year ago.