ProHost Biotech

Thursday’s news brought to mind our old friend, Xoma (XOMA), which, unlike Raymond, not everybody loves it. Actually, many still love Xoma, but with reservation and resentment. Many time we questioned whether Xoma is addictive. For a couple of months, when we had nothing to write, good or bad, about Xoma, readers accused us of infidelity. It is important to mention that two decades ago, many investors highly treasured Xoma, viewing it as the personification of hope for breakthrough drugs the budding biotechnology industry was promising to get across to medical practice. In London, investors asked us if we know Xoma and the same came about in Paris, Milan, Rome, and Zurich. As a matter of fact, this firm was esteemed everywhere for its technologies, scientists, and pipeline products. More...

Elan (ELN) was granted FDA approval of Tysabri for Multiple Sclerosis in November 2004. It was great news for the firm and its shareholders, as it was no secret that the drug was a breakthrough expected to become bestseller in a huge market. The celebration of the great achievement was of short duration. Three patients developed PML (progressive multifocal leukoencephalopathy), two of them died. It was Biogen Idec, Elan’s partner on Tysabri, not the FDA, which decided to withdraw the drug from the market. The FDA was aware that the reward from such a great drug outweighs the risk, which is a rare complication that would occur with any drug that compromises the immune system and there are many on the market. Bottom line, Tysabri was reinstated on the market on condition that the patients take part in a risk-minimization program with mandatory patient registration and regular follow-up. More...

Picking biotech stocks for short-term and long-term investment could be a good practice if investors know what to pick. In most cases, picking biotech stocks that have no near-term catalysts could be disappointing, leading investors to wait and wait, then get bored, and sell their shares at a great loss. To pick firms in early- or mid-phase development the firms should have very advanced technologies and product pipelines with strong evidence of promise that they are the envy of rich pharmaceutical firms. The large-pocketed drug developers usually desire what they need and buy what they desire. Most are currently in dire need of breakthrough products, as the patent lives of many of their bestsellers are expiring. Investors must be aware of the fact that stocks of development-stage firms’ are destined to fall after each and every quarterly financial results announcement, as they have no revenues or incomes. They also fall after shareholders get disappointed in the negative performances of their stocks, hence, trash them. Compensation can come early, however, in the event of takeovers, alliances that pay huge upfront payments, or the announcement of stunningly positive clinical trial results of products that deal with life-threatening diseases with large markets. Focused investors may be able to catch big fish in situations exemplified by the following three circumstances: More...

As expected, Human Genome Sciences (HGSI) will report on progress with the commercialization of Benlysta® (belimumab) during a presentation at the 30th Annual JPMorgan Healthcare Conference in San Francisco. The drug is approved for the treatment of adult patients with active autoantibody-positive systemic lupus erythematosus (SLE) who are receiving standard therapy. More...

We keep reading daily tails about Dendreon (DNDN), Human Genome (HGSI) and other firms granted FDA approvals for therapeutics, which had disappointing sales. Bullish and bearish analysts are filling the media with articles explaining the reasons for the sluggish sales of Dendreon’s drug Provenge and Human Genome’s drug Benlysta after investors have already lost their money. Predicting the drugs’ poor sales before they hit the market was no dilemma, as the barriers to successful launch were palpable. Both bullish and bearish analysts preferred not to reveal ongoing obstacles to satisfactory market penetration; the bullish were enjoying the rally and had no interest in halting it, and the short-selling analysts and their followers welcomed bubbling of stocks, so they would hit the jackpot if and when the bubbles burst. Investors’ disappointment wouldn’t have been as deep, resulting in a huge selloff of the stocks if they had done their due diligence towards developing realistic expectations. Instead, they interpreted analysts’ silence as a sign that the revenues being generated from the drugs’ sales would certainly meet the analysts’ and the firms’ projections. They didn’t. Why? That’s what investors needed to know. More...