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: Generex, Part II

Dan M. writes, "I am wondering if you can revisit your analysis on Vanda Pharmaceuticals (VNDA - Get Report) and Titan Pharmaceuticals (TTNP.PK). With initial Fanapt sales numbers due form Novartis in about one month, patent extension granted past 2020 on the injectable depot formulation and a likely rest-of-world partnership coming this year, I would like to know if your opinions or views of Vanda and Titan have improved, or if you still view them with a negative tilt."

I'm still skeptical about Novartis' ability to sell Fanapt into a crowded schizophrenia treatment market in the U.S. Vanda and Titan receive royalties on Fanapt sales from Novartis, so their valuations hinge almost entirely on the success or failure of the drug's commercial launch. I don't think any of the other factors mentioned by Dan matter more than Fanapt sales at this point.

At $12, Vanda's stock price is right where it was in October when the Fanapt partnership with Novartis was announced. By my reckoning, Vanda's stock price is already baking in $200 million to $400 million in Fanapt sales.

The Fanapt sales launch began in early January, so hopefully Novartis will say something about the effort on its first quarter conference call. But like Spectrum, it's going to take more than one quarter's worth of sales to get a clear picture of Fanapt's health in the market.

-- Reported by Adam Feuerstein in Boston.

Follow Adam Feuerstein on Twitter.

Correction: In last week's Mailbag column, the name of Generex' Oral-lyn was misspelled. It has been corrected. Also, it should be noted that Oral-lyn has been discussed in medical journals and presented at medical association meetings over the last ten years. regrets the error.
Adam Feuerstein writes regularly for In keeping with TSC's editorial policy, he doesn't own or short individual stocks, although he owns stock in He also doesn't invest in hedge funds or other private investment partnerships. Feuerstein appreciates your feedback; click here to send him an email.
5 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
MNKD $2.01 0.50%
SPPI $5.85 -2.50%
VNDA $9.81 -0.51%
CTIC $1.22 -0.41%
GNBT $0.01 0.00%


Chart of I:DJI
DOW 17,882.14 +162.22 0.92%
S&P 500 2,089.89 +9.48 0.46%
NASDAQ 5,127.2090 +18.5430 0.36%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs