EPIX Pharmaceuticals
PRX-03140
EPIX-
There was lot’s of buzz this weekend about EPIX having an “FDA approved” drug auction on Wednesday. The buzz sent the stock up 1000% on Friday and investors seemed eager to jump in this morning. But the funny thing about hype is that it can be deceiving…
If you read the PR closely you will see it says that the FDA approved a “IND” which is an extension of a test.
So the drug didn’t get approved, a continued study of it did. Which means only the patients who participated in phase II will get to continue using it. The phase II trial only had one test subject, which is strange.
I’m sure it was picked for the auction because it is EPIX’s greatest asset. It will likely bring them the most money. However, how much money?
What is for sale here is the opportunity for a larger company to purchase a drug (PRX-03140) for a large market (Alzheimer’s) at a late stage of development. The cost of two trials is behind them, and there is a possibility they
could meet with the FDA and get a Phase III trial approved (which is
the last phase before big time approval), which is good but it would no longer be involved with THIS company
after the auction. Also there are some reasonable claims against the company, somewhere around
$5 million. So if the auction on Wednesday were to yield a far greater amount, say $30m, $25m would be left over for the benefit of the company and its shareholders.
This morning I predicted a price drop because people would realize the drug was not “FDA approved” but merely acquired permission to continue a study. Unfortunately the company is low on funds and is liquidizing their assets to get out with what ever profit they can, and PRX-03140 is their greatest asset. Hopefully it will get some high bids.
Because of the auction on Wednesday, tomorrow after noon might see a light run. But another 1000% doesn’t seem likely. The time to get in would have probably been last Thursday. For those who bought in today I hope I’m wrong.
This is my opinion only, always do your own DD, and have a great afternoon!
-The Trading Grasshopper
GETA has been having intersting times it fell more than 10% today its biggest fall in quite some time. AAPL Apple Computers blew away the computer industry yesterday with a 46% increase in sales its a good time to own them maybe they can do the same thing again next quarter. There stock should keep on moving straight up. Buy geta before you can't.
PRX-03140
EPIX-
There was lot’s of buzz this weekend about EPIX having an “FDA approved” drug auction on Wednesday. The buzz sent the stock up 1000% on Friday and investors seemed eager to jump in this morning. But the funny thing about hype is that it can be deceiving…
If you read the PR closely you will see it says that the FDA approved a “IND” which is an extension of a test.
So the drug didn’t get approved, a continued study of it did. Which means only the patients who participated in phase II will get to continue using it. The phase II trial only had one test subject, which is strange.
I’m sure it was picked for the auction because it is EPIX’s greatest asset. It will likely bring them the most money. However, how much money?
What is for sale here is the opportunity for a larger company to purchase a drug (PRX-03140) for a large market (Alzheimer’s) at a late stage of development. The cost of two trials is behind them, and there is a possibility they
could meet with the FDA and get a Phase III trial approved (which is
the last phase before big time approval), which is good but it would no longer be involved with THIS company
after the auction. Also there are some reasonable claims against the company, somewhere around
$5 million. So if the auction on Wednesday were to yield a far greater amount, say $30m, $25m would be left over for the benefit of the company and its shareholders.
This morning I predicted a price drop because people would realize the drug was not “FDA approved” but merely acquired permission to continue a study. Unfortunately the company is low on funds and is liquidizing their assets to get out with what ever profit they can, and PRX-03140 is their greatest asset. Hopefully it will get some high bids.
Because of the auction on Wednesday, tomorrow after noon might see a light run. But another 1000% doesn’t seem likely. The time to get in would have probably been last Thursday. For those who bought in today I hope I’m wrong.
This is my opinion only, always do your own DD, and have a great afternoon!
-The Trading Grasshopper
GETA has been having intersting times it fell more than 10% today its biggest fall in quite some time. AAPL Apple Computers blew away the computer industry yesterday with a 46% increase in sales its a good time to own them maybe they can do the same thing again next quarter. There stock should keep on moving straight up. Buy geta before you can't.
No comments:
Post a Comment