This Day On The Street
Continue to site
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

Biotech Stock Mailbag: Discovery Labs

I knew this, of course, but sometimes the mouth doesn't follow the brain, especially when you're shooting video. Regardless, I apologize for the mistake.

Peramivir is a legitimate albeit still experimental flu drug, and the company has an initial, small development contract with the U.S. government, which apparently wants to stockpile peramivir in case vaccines fail and this country is plunged into a flu emergency.

But peramivir must be given intravenously, which limits its use to the hospital. There is the possibility of the drug being given in a doctor's office, but primary care doctors are generally not equipped to administer I.V. drugs.

I wasn't trying to be a total Biocryst bear in my video, but was merely pointing out that the stock's run from $4 to $10 bakes in a good amount of whatever peramivir stockpiles the government may purchase. Profit taking by investors, therefore, wasn't a bad idea.

Traders are having a party when it comes to flu stocks. Heck, take a look at the insanity around Inovio Biomedical (INO - Get Report) this week for proof. But yes, I do think that a lot of this flu mania is hype, and that includes some of the more bullish estimates for the size and scope of peramivir stockpiling contracts that Biocryst bulls are betting on.

I won't be surprised to see the U.S. government buy some more peramivir as a "last line of defense" strategy to tackle whatever the flu delivers this winter. But peramivir has been around a long time -- still unapproved -- and I don't yet see the evidence that government officials see the drug as anything more than a minor part of their contingency plans.
4 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
CTIC $0.44 -5.59%
BCRX $3.00 -7.41%
BDSI $2.90 -3.01%
DSCO $2.30 -0.86%
INO $9.39 -9.36%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs