Alimera Sciences (ALIM) is a biotech company focused on the development of Iluvien, an eye implant used to treat vision loss associated with chronic diabetic macular edema (DME). The drug was rejected 3 times by FDA already (last time in October), and the company is submitting a new request in early 2014. The difference this time is, that FDA stated that Alimera does not need to conduct additional trials before approval, and the company is undergoing discussions about treatment details to go on the label, if it's approved. The implant is already on the German and UK market, with Austria, Spain, Portugal and France coming soon after receiving recent approvals. The stock jumped 61% on heavy volume following the news.
US revenues of Iluvien are estimated at 250 mil. USD, if we assume a 30% profit margin and a 20% profit share to pSivida (PSVD), Alimera could generate 60 million USD in net profits from USA alone, which under it's current market cap would bring a forward P/E of 2.2. Assuming a conservative P/E valuation of 10, the market cap would be 600 million, implying a 361% increase from current prices. This doesn't take into account possible future growth or expansion to new markets. There are approximately 3 million people suffering from DME in US and Europe right now.
US revenues of Iluvien are estimated at 250 mil. USD, if we assume a 30% profit margin and a 20% profit share to pSivida (PSVD), Alimera could generate 60 million USD in net profits from USA alone, which under it's current market cap would bring a forward P/E of 2.2. Assuming a conservative P/E valuation of 10, the market cap would be 600 million, implying a 361% increase from current prices. This doesn't take into account possible future growth or expansion to new markets. There are approximately 3 million people suffering from DME in US and Europe right now.
CytRx Corporation (CYTR) develops cancer drugs, with it's most promising candidate being aldoxorubicin, which treats advanced soft tissue sarcomas (muscle cancer). The company recently announced Phase 2b trials, which demonstrated a clear dominance over the current drug doxorubicin (manufactured by Beohringher Ingelheim and sold by Johnson & Johnson), with median patient progression-free survival of 8.7 months for the former and 4.7 for the latter. As such, their drug would be the first agent to surpass doxorubicin as first-line treatment for sarcomas. In addition, doxorubicin is sold to treat many other types of cancer, aldoxorubicin could be the best alternative on the market, if it's benefits show similar dominance in other fields.
The stock has a market cap of 141 mil. USD, short float stands at 4.36%, and there have been several insider purchases in the past months. If their drug delivers results shown in Phase 2, the stock offers tremendous growth potential for years ahead and is significantly undervalued. There is always a risk of failure, but by purchasing the best 5-6 stocks with huge potential, one can mitigate the risk contribution of a single stock and still capture a large part of upside.
The stock has a market cap of 141 mil. USD, short float stands at 4.36%, and there have been several insider purchases in the past months. If their drug delivers results shown in Phase 2, the stock offers tremendous growth potential for years ahead and is significantly undervalued. There is always a risk of failure, but by purchasing the best 5-6 stocks with huge potential, one can mitigate the risk contribution of a single stock and still capture a large part of upside.
AcelRx Pharmaceuticals (ACRX) and their lead product Zalviso, which addresses problems arising from patient-controlled analgesia (a method allowing the a patient in pain to control his pain relief). Approximately 75% of patients report inadequate pain relief, and are served morphine by IV PCA, which can lead to drug side effects or complications related to it's delivery to patient's body. Zalviso has completed Phase 3 trial and is currently awaiting FDA approval. The company recently announced a partnership with Gruenenthal (European leader in pain medications) under which ACRX receives an upfront payment of 30 million USD and another 220 million USD based on sales, development and regulatory progress. They will also receive royalty payments of 15-25% of Zalviso net sales.
ACRX has a market cap of 430 million, short float of 11% and significant insider buying in the last few moths. Since Zalviso is in a late stage of development and Gruenenthal showed interest in marketing the product, I believe the stock is set for large gains in 2014.
ACRX has a market cap of 430 million, short float of 11% and significant insider buying in the last few moths. Since Zalviso is in a late stage of development and Gruenenthal showed interest in marketing the product, I believe the stock is set for large gains in 2014.
OncoMed Pharmaceuticals (OMED) is a revolutionary pharma company, focused on discovering drugs that target "cancer stem cells", in other words tumor initiating cells. Common therapies usually target the bulk tumor cells, but not the cancer stem cells, which are responsible for the growth and recurrence of tumors. OMED therapies block these cells and also impact bulk tumor cells, so that cancer cannot spread throughout the body. They have several products in their pipeline, the most advanced being currently at Phase 1b/2. Their treatment is significantly different from current chemotherapies, and if successful would change cancer treatment as we know it.
OncoMed is already cooperating with Bayer and GlaxoSmithKline, but recently signed a deal with Celgene (CELG), to jointly develop and commercialize 6 product candidates including the top one, demcizumab. Celgene will help with development and sales of products, for which OncoMed receives royalty payments: 50/50 in USA and double-digit revenue share in worldwide markets. Celgene will pay 155 million upfront, as well as buy 22 million worth of OMED stock. Most importantly, the deal includes payments for achieving certain regulatory and sales milestones: 790 million for demcizumab and around 440 million for each of the other five programs. If everything goes well, OncoMed will receive 3 billion dollars just from milestone payments! Celgene certainly sees huge potential in their innovative therapies, and will provide much needed capital and resources for development and marketing. Joint ventures in the pharmaceutical sector always smell of opportunity, reminds me of one of the best deals between Pharmacyclics and Johnson & Johnson
OMED sells for 660 million USD, with a 5% short float and no recent insider buying. Following the release of collaboration with Celgene, OMED stock shot up almost 100% with volume higher than on IPO day.
OncoMed is already cooperating with Bayer and GlaxoSmithKline, but recently signed a deal with Celgene (CELG), to jointly develop and commercialize 6 product candidates including the top one, demcizumab. Celgene will help with development and sales of products, for which OncoMed receives royalty payments: 50/50 in USA and double-digit revenue share in worldwide markets. Celgene will pay 155 million upfront, as well as buy 22 million worth of OMED stock. Most importantly, the deal includes payments for achieving certain regulatory and sales milestones: 790 million for demcizumab and around 440 million for each of the other five programs. If everything goes well, OncoMed will receive 3 billion dollars just from milestone payments! Celgene certainly sees huge potential in their innovative therapies, and will provide much needed capital and resources for development and marketing. Joint ventures in the pharmaceutical sector always smell of opportunity, reminds me of one of the best deals between Pharmacyclics and Johnson & Johnson
OMED sells for 660 million USD, with a 5% short float and no recent insider buying. Following the release of collaboration with Celgene, OMED stock shot up almost 100% with volume higher than on IPO day.
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