The biotech universe has been a hot investment option towards the end of the year for those looking for high risk
high reward equities. This industry offers investors a chance to find
companies which price per share is valuated based on science rather than
heavy influence from major indices and economic news around the world.
Though often times it is hard to distinguish the golden eggs among the
rotten ones, it is becoming increasingly popular to see investors and
firms begin buying up companies prior to their upcoming FDA catalysts in
anticipation of the news, often a few weeks or months in advance.
One of the companies looking to take advantage of the recent inflow
of attention to the small cap biotechs is BioSante Pharmaceuticals,
who has 2 upcoming catalysts for the first half of 2011 which could
easily propel the company to new 52-week highs. It is expected in the
coming weeks that they begin phase 2 study at Johns Hopkins cancer
center for GVAX (therapeutic cancer vaccine) and also phase 3
results for their flagship product, LibiGel to support an NDA filing.
With a market capitalization of only 112M, it isn't a surprise the
company's Director, Ross Manango has been scooping up shares at $1.47
during December in anticipation of the company's forward looking events
during the new year. The company has also increased cash on hand by
nearly $6M from product revenues and partnerships year-over-year as its
clinical pipeline continues to grow stronger, dispelling any worries of
future dilution. (source:11/12/2010 10-Q EDGAR ONLINE)
Such occurences have recently been witnessed in XOMA whose shares rose a whopping 204.68% since last Monday's trading, Repros who jumped 82% on Thursday, and ACADIA
who went on to gain 31% on Wednesday and Friday's market. Though no
material news was formally announced neither XOMA nor ACADIA, the shares
jumped solely in anticipation of upcoming FDA catalysts, with Repros
being the exception of the three. Repros reported positive developments
for its experimental testosterone deficiency drug, Androxal.
What's most important to note is that all three of these companies
saw heavy institutional accumulation during the last three months
leading up to their anticipated catalysts, something BioSante has yet to