This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Feuerstein's Biotech-Stock Mailbag

It's Saturday, so time for another Biotech Mailbag. As always, send your rants and raves here .

Several readers have inquired about Novacea (NOVC) and its drug Asentar. Judging by the anguished tone of their emails, I get the sense that many bought the stock after it nearly doubled overnight to $15 on May 30. The big move was triggered by a very nice Asentar partnership signed between Novacea and Schering-Plough (SGP).

Unfortunately, the stock hasn't been able to sustain the momentum. One month later, it has dropped more than 30%, all the way back down to around $10.

I missed a chance to write about Novacea before the Schering-Plough deal, so I can't say I'm unhappy about the stock's retrenchment. I believe Asentar is a compelling drug for the treatment of prostate cancer, on the basis of the data generated to date. The Schering-Plough partnership is a big positive, and management deserves kudos for promising a deal and then actually delivering one (the latter accomplishment being something sorely lacking in biotech circles).

But (and yes, there is always a "but") the next big event for Novacea is going to be data from its ongoing pivotal phase III trial of Asentar. That's not expected before the end of 2008 -- a long time from now.

That's a big reason behind the pullback in the stock. (I also believe momentum investors went a bit crazy on May 15, too.) For those who already own Novacea, patience will be required. For those who are not yet in the stock, it deserves another look, because the risk/reward is compelling.

1 of 5

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,237.32 +168.45 0.99%
S&P 500 1,997.06 +24.32 1.23%
NASDAQ 4,609.1760 +61.3420 1.35%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs