6 Cheap Biopharma Stocks to Consider
March 25, 2016
By Mark Terry, BioSpace.com Breaking News Staff
Everybody wants a deal, and here are six companies whose stocks are selling under $10 per share, but stand a chance of going big, or at least up.
Pernix Therapeutics
Morristown, N.J.-based Pernix Therapeutics is a specialty pharmaceutical company working to develop products for underserved areas of the central nervous system, including neurology and psychiatry. Company is currently trading at $1.15, up from $0.90 on Mar. 18, but down from $2.40 on Mar. 7.
TheStreet writes that, “Traders should now look for long-biased trades in Pernix Therapeutics as long as it’s trending above $1 a share and then once it sustains a move or close above those breakout levels with volume that hits near or above 822,582 shares.”
The company recently released its 2015 financials, reporting net revenue increased 44 percent year-over-year to $175.9 million.
Amicus Therapeutics
Amicus Therapeutics (FOLD), headquartered in Cranbury, NJ, is a rare-disease company. It is awaiting the approval of Galafold for Fabry disease. It was recently cited by The Motley Fool as an underperforming stock worth looking at, something TheStreet agrees with. are currently trading at $7.76.
Rockwell Medical Technologies
Rockwell Medical Technologies (RMTI), located in Wixom, Mich., is a fully-integrated biopharmaceutical company focused on end-stage renal disease and chronic kidney diseases, with products and services for iron deficiency anemia, secondary hyperparathyroidism and hemodialysis. Rockwell is currently trading for $6.42 per share, down from $9.98 on Feb. 26.
TheStreet writes, “Traders should now look for long-biased trades in Rockwell Medical as long as it’s trending above some near-term support around $6 a share and then once it sustains a move or close above those breakout levels with volume that hits near or above 646,874 shares.”
Momenta Pharmaceuticals
Cambridge, Mass.-based Momenta Pharmaceuticals (MNTA) is focused on generics and biosimilars. It markets a generic version of Sanofi’s Lovenox to treat deep vein thrombosis (DVT) and is launching another complex generic, Novartis’s Glatopa, a generic version of daily COPAXONE for relapsing forms of multiple sclerosis.
Momenta is currently trading for $8.51. TheStreet thinks it’s close to a big breakout.
BioDelivery Sciences International
BioDelivery Sciences International (BDSI) is headquartered in Raleigh, NC, and focuses on pain and addiction treatments. It has three drugs approved, Onsolis for breakthrough cancer pain, Bunavail for opioid dependence, and Belbuca for chronic pain. It has Clonidine Topical Gel for diabetic neuropathy in Phase III trials and Buprenorphine Depot Injection in development.
BioDelivery is currently trading for $2.91. TheStreet writes, “This stock has been downtrending badly over the last six months, with shares collapsing off its high of over $7 a share to that new 52-week low of $2.53 a share…. That said, shares of BioDelivery Sciences are now starting to trend higher with volume and are quickly moving within range of triggering a near-term breakout trade.”
Celldex Therapeutics
And finally, Hampton, NJ-based Celldex Therapeutics (CLDX). On Mar. 7, the company announced that its Rintega cancer vaccine failed to meet its primary endpoint and the study was being terminated. Not surprisingly, company shares plunged by more than half at the news. traded on Mar. 19, 2015 for $31.78, dropped on Aug. 21 to $13.53, then to $10.38 on Sept. 29. They bounced back a little on Nov. 23 to $18.11, then dropped on Feb. 10, 2016 to $6.45. Shares are currently trading for $3.53.
Despite this setback, the company has a fairly vigorous pipeline. It’s glembatumumab vedotin is an antibody drug conjugate being studied in a trial on triple-negative breast cancer patients. Enrollment is expected to be finished in the second half of this year. The company’s varlilumab, a monoclonal antibody that targets CD27, is being investigated in early clinical trials in solid tumors, some in conjunction with Bristol-Myers Squibb ’s checkpoint inhibitor, Opdivo.
TheStreet, looking for a jump in stock, writes, “If that breakout hits soon, then this stock will set up to re-fill some of its previous gap-down-day zone that started near $8 a share.”