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!

Biotech Stock Mailbag: Health Discovery

Stocks in this article: HDVY.OB AMGN ANX DSCO CLRT DGX ABT

BOSTON ( TheStreet) -- This week's Biotech Stock Mailbag opens with an email from Edward M. with a question about Health Discovery Corp (HDVY.OB).

" Health Discovery Corp. recently received a bullish write-up by Biomedreports that said certain undisclosed actions would be taken very soon to implement the company's urine-based test for prostate cancer. Did you see this report and if so, what is your position? If Health Discovery Corp.'s urine-based test works it could become the gold standard for prostate cancer and replace PSA tests because those don't work at all and doctors want something else."


Health Discovery (HDC) is working on a urine-based genetic test for prostate cancer, along with partners that include Quest Diagnostics (DGX), Clarient (CLRT) and Abbott Labs (ABT). That much from Biomedreports' recent coverage of the company is true.

Unfortunately, more of what was reported by Biomedreports about HDC contained factual omissions and exaggerations that distort both the timeliness of the company's prostate cancer test as well its near-term commercial potential.

HDC's urine-based test doesn't appear to be close to clinical validation or commercialization, according to checks I made with HDC's partners. And even if a convenient and accurate urine-based gene test for prostate cancer was launched soon, it would not replace the widely used, if flawed, PSA blood test -- certainly not right away, according to cancer experts.

Trading in Health Discovery (HDC) surged on Jan. 29, triggered by a Biomedreports alert to its paying subscribers that morning:

"... speculation centers on news surrounding the company's new gene-based molecular diagnostic test for prostate cancer -- which has successfully completed its phase III double-blind clinical trial and is now ready for commercialization. The new prostate cancer test will be performed at Clarient's clinical laboratory in Aliso Viejo, Calif. HDC will receive 30% royalty on each test performed," the Biomedreports alert stated.

By the close of trading on Jan. 29, HDC's stock price rose 6 cents, or 27%, to 28 cents a share. The intraday high reached 31 cents. More than 12 million shares traded hands, 12 times the average daily trading volume in the stock.

1 of 6

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 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

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