Biotech Orphans Seek Homes

The American Society of Clinical Oncology (ASCO) annual meeting is full of orphans looking for a home.

By orphans, I mean beaten down drug and biotech companies long left for dead by much of Wall Street. These are the companies that have blown-up drugs -- and the bottomed-out stock prices to go along with them -- but are trying to make a comeback, either by resurrecting old drugs or starting from scratch with something else in the pipeline.

One medical conference does not a comeback make, but the ASCO meeting is a good place to kick the tires on some of these bio-orphans and get started on some further fundamental research.

Let's take a look at three such companies that caught my eye this weekend at the ASCO meeting: Keryx Pharmaceuticals(KERX Quote), Accentia Biopharmaceuticals(ABPIQ.PK Quote) and Medarex(MEDX Quote).

Keryx Pharmaceuticals

Keryx blew up in March 2008 when its lead drug for diabetic nephropathy failed a pivotal phase III study. The setback sent the company's stock plunging below $1 where it has stayed ever since. Money became tight and the company was forced to restructure operations and cut back on the development of two remaining drugs. A new CEO took over Keryx's reins in May.

This weekend, Keryx presented mid-stage data from one of those remaining pipeline drugs. Perifosine, or KRX-0401, is an oral anti-cancer drug that targets the AKT pathway in cells, which when activated, promotes cell survival and resistance to chemotherapy. High levels of AKT are seen in many types of cancer and are often correlated with poor prognosis.