Access Update- #57
It’s always nice when you wake up to positive headlines in your stocks. Here’s what’s going on:
Cytori Therapeutics (Nasdaq: CYTX) – Nagasaki University Hospital dosed the first patient in a small trial to see if adipose derived stem and regenerative cells can be used to treat radiation related injuries. The study is using CYTX’s Celution System.
This is an independent study that is being funded by the Japanese government.
Celution is currently approved for use in breast reconstruction, but it is being used in various trials all over the world in all kinds of different illnesses and conditions. It’s exciting to see that medical professionals see the enormous potential of this product.
SIGA Technololgies (Nasdaq: SIGA) – The company announced it completed three registration batches of small pox therapeutic ST-246. This is an important milestone in the process to apply for approval from the FDA.
Synta Pharmaceuticals (Nasdaq: SNTA) – After reviewing safety data and non-futility analysis, the independent Data Monitoring Committee determined that SNTA’s elesclomol phase III trial for melanoma should continue.
We anticipated this event before year-end and are glad it has come to fruition. While it’s clearly a positive, it’s important to note that it does not indicate that the drug will work or be approved.
The trial is expected to wrap up in January or February with the data released shortly after.
ViroPharma (Nasdaq: VPHM) – VPHM announced the resignation of Michel De Rosen from the board of directors. This is the one headline that I don’t view as positive. De Rosen was the chairman and former CEO. I was a big fan of De Rosen who had a history of bold leadership. While I like the current CEO Vincent Milano very much and believe he is cut from the same cloth as De Rosen, I had comfort in knowing that De Rosen still had input.
On another note, VPHM is continuing to battle the FDA’s stance that proof of in vitro (in test tubes) bioequivalence will be adequate to approve generic vancocin. VPHM filed papers with the Federal District Court of the District of Columbia under the Freedom of Information Act to obtain the FDA’s administrative record in relation to its decision to change its policy on generic vancocin from requiring in vivo (in a living organism) proof of bioequivalence to in vitro. VPHM has attempted to get the information from the FDA for over two years.
Also, don’t forget about today’s 2:30 p.m. ET conference call with Rochester Medical’s (Nasdaq: ROCM) management. This stock is a screaming buy, especially in the current environment. The company is profitable, cash flow positive, has plenty of cash, low debt and two huge catalysts in 2009 that should take the company’s business to a new level.
Lastly, I’d like your feedback on the Access service. What do you like? What needs improvement? What would you like to see more of? Less?
I believe Access is the most unique investing service out there, but I’m always looking to improve. Please let me know how we can serve you even better in 2009. Send your feedback to research@accessresearchgroup.com .
Marc Lichtenfeld
Director of Research
Access Research Group
Current Portfolio:
Name: Rochester Medical
Symbol: ROCM
Current Price: $14.00
Comments: Buy up to $15.00
Name: SIGA Technologies
Symbol: SIGA
Current Price:$3.10
Comments: Buy up to $4.00
Name: Synta Pharmaceuticals
Symbol: SNTA
Current Price: $5.40
Comments: Buy up to $13.00
Name: ViroPharma
Symbol: VPHM
Current Price: $12.10
Comments: Buy up to $12.50
Name: Cytori Therapeutics
Symbol: CYTX
Current Price: $3.83
Comments: Buy up to $8
Name: Electro-Optical Sciences
Symbol: MELA
Current Price: $3.13
Comments: Buy up to $5.75