After a grueling week at the JP Morgan Conference and a relaxing few days off in the Sierras, I’m back at my desk and ready to start capitalizing on some of the ideas I came across in California.
I met with the CEO of my next recommendation. No one on Wall Street covers the company yet and I am digging around for more info. I’ll let you know when I have an ETA on the report, but it shouldn’t be too much longer.
In the meantime, as shares of Electro-Optical Sciences (Nasdaq: MELA) have continued higher, I want to raise the stop. Replace the old stop with a new one at $8.33. This will guarantee us gains of 60% on our remaining position (based on an entry price of $5.22).
There hasn’t been any news in a while. At this point, we’re waiting for word on whether MelaFind will go before a panel review or straight to an approval decision. While we’re still very confident in approval, we want to be sure to protect those gains, so make sure your stop is in place.
Earnings Next Week
Earnings season is getting started and two of our companies report quarterly results next week.
After the market closes on Tuesday, January 26th, Rochester Medical (Nasdaq: ROCM) will report fiscal first quarter results. Wall Street expects earnings of 2 cents per share on $10.07 million in sales.
I wouldn’t be surprised if the company’s sales and earnings figures are higher than Wall Street’s estimates due to the rise of the dollar. In the past, ROCM has been hurt by the weak dollar, so the buck’s new found strength should be beneficial to the top and bottom line.
Most importantly, I want to hear an update on FemSoft, which will hopefully include a distribution agreement. Once a deal is signed for FemSoft, the sales machine should start revving.
Immunogen (Nasdaq: IMGN) reports on Thursday, January 28th after the close. The company is projected to lose 21 cents per share on revenue of $4.33 million. However, since IMGN is a development stage company, its operating results aren’t as important as progress in its pipeline, particularly because IMGN has plenty of money in the bank.
I spoke with CEO Daniel Junius before he gave his presentation at the conference. He emphasized that IMGN is not a one-trick pony and that even if T-DM1 is the blockbuster many are hoping it will be, the company has plenty of other interesting drugs including IMGN901 and two new compounds that will enter clinical trials this year.
In a phase I trial, 3 out of 6 Merkel cell carcinoma (a rare and aggressive skin cancer) patients showed a marked response, with 1 in complete remission for 4 years. The average survival rate for patients with advanced disease is less than 9 months. IMGN901 is wholly owned by IMGN and could be partnered in the near future.
More data on IMGN901 will be out in the second half of the year. IMGN will see lots of new data this year including, phase I data on BIIB015 in solid tumors in the first half of the year. The drug is partnered with Biogen Idec (Nasdaq: BIIB). Data on IMGN388, also on solid tumors, will be presented at the annual meeting of American Society of Clinical Oncology (ASCO) in June.
Marc Lichtenfeld
Director of Research
Access Research Group