Why Accumulating and Trading Shares of Medgenics Now May Not Be A Bad Idea
(Thomson Reuters ONE) -
By M.E. Garza
On Tuesday afternoon, we tweeted to our followers that it might not be a bad
idea to pick up some shares of Medgenics, Inc. (AMEX:MDGN) (AIM: MEDU, MEDG),
particularly given the recent buzz about the firm's anticipated
hepatitis pipeline development milestone.
This is a stock that had traded as low as $11.89 during Wednesday's
session following the sad news that one of the firm's Board Members, Gary
Brukardt, had passed away. Still, we reminded our readers that we continue to
anticipate news related to the firm's active hepatitis program and that such
news might come at any moment. The stock closed the day almost a dollar higher
from those lows, at $12.86- a testament to how quickly MDGN shares move on
limited volume.
Some of you may recall that MDGN was one of our biggest movers earlier this
summer after the company announced that it had received Orphan Drug
Designation from FDA for its INFRADURE Biopump to Treat Hepatitis D. The stock
stock has a very low float and it went on an incredible run from roughly $6.50
to over $15. Shares had recently traded as low as $10.23 and we began to
accumulate more at those levels, given the anticipation of the telegraphed
milestones that other writers and research firms have been pointing to.
Recently, we've also seen articles tht remind us of the importance and
opportunity that has presented itself for the company within the hepatitis
space, particularly given the Biopump Platform technology's ability to provide
sustained protein therapy for the treatment of various chronic diseases and
conditions, including anemia, hepatitis, hemophilia, multiple sclerosis,
arthritis, pediatric growth hormone deficiency, obesity, diabetes, and other
chronic diseases or conditions.
This is a solid firm with multiple shots on goal and the recent
addition of former Celgene Corporation Chairman and Chief Executive Officer, Sol
J. Barer, PhD. as Chairman of the Board cannot be overlooked. In May, Medgenics
was given the FDA nod to begin a Phase IIb clinical trial for its EPODURE
Biopump that treats anemia in dialysis patients, the company`s first such
approval in the U.S. In June we saw the Orphan Drug designation granted for
INFRADURE, a biopump designed to treat a form of hepatitis. If Medgenics can
realize these achievements in a short time, imagine how far and how fast it can
move with Barer now in place.
The fact that the firm has a limited float only adds to the reasons we like to
trade and have accumulated shares. This is, without a doubt, one of our
favorite- most intriguing- biotech plays out there and we hope to continue to
follow their story on a regular basis. If the firm starts to partner some of
these indications, as we are told they plan to do, then MDGN's market cap will
begin to rise substatially, but it will take patience. In the meantime, we are
happy to trade in an out, taking profits and leaving some shares to ride on
"house money." Remember that the FDA has been putting the brakes on hepatitis c
drug hopefuls quite agressively and as such, the longer Medgenics' own program
In an earlier report, we pointed out that while, analysts have weighed in, about
how the Orphan Drug development may have transformed MDGN into a buy-out
candidate, during our own interview with Andrew L. Pearlman, Ph.D., President
and Chief Executive Officer of Medgenics he indicated his team was focused on
making sure that his firm will continue to build its pipeline (of multiple
+billion dollar market indications) and add value beyond its current market cap.
He stated cleary that the approval was the second one they had gotten for their
technology and that, "for our company and we think it will give a lot more
confidence to would-be partners and institutional investors who may have been
looking for a clear sign from a regulatory agency that we have a straight shot
for an approvable product within a reasonable time."
We note also that more recently, MDGN appointed Marvin Garovoy as its chief
medical officer.Garovoy is another heavy hitter who has been involved in
clinical development and regulatory submissions at a number of drug development
and biotechnology companies, including Genentech, Hyperion Therapeutics and
BioMarin.
Regardless of how quickly this anticipated milestone news arrives, we continue
to feel that Medgenics is a solid biotech bet with limited down-side given their
widely recognized upside potential.
Disclosure: Long MDGN
The full report on MDGN is available now at:
http://www.biomedreports.com/20120829103312/why-were-accumulating-and-trading-
medgenics-now.html
Healthcare investors and Biotech traders interested in accessing BioMedReports'
new complete database of clinical trials and upcoming FDA and world-wide
regulatory decisions which can be used to make more profitable trades and see
upcoming catalysts can go to: http://biomedreports.com/fdacal.html
Follow Us
News developments and live healthcare sector updates are available constantly
via twitter at: http://twitter.com/BioMedReports
####
About BioMedReports.Com
BioMedReports is a news and research portal covering financial biomedical news
and the entire Healthcare Sector of the market. BioMedReports is not paid or
compensated to report the news and developments of publicly traded companies.
BioMedReports sells a premium product for subscribers and full disclosures and
information about the stocks and news mentioned in this news release is
available at BioMedReports.Com
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: BioMedReports via Thomson Reuters ONE
[HUG#1636993]
Datum: 29.08.2012 - 12:44 Uhr
Sprache: Deutsch
News-ID 178684
Anzahl Zeichen: 6676
contact information:
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 210 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Why Accumulating and Trading Shares of Medgenics Now May Not Be A Bad Idea"
steht unter der journalistisch-redaktionellen Verantwortung von
BioMedReports (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
