This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

ASCO's Abstract Release Day: Preview

If ASCO research abstracts skimp on these important details, why do investors get worked up about their release?

Well, abstracts sometimes lack efficacy and safety data, but other times, that sort of information craved by investors is in there, either in interim or final form. Investors have no way of knowing how detailed research abstracts will be until they're released, which is why Wall Street's biotech and drug investors make a big deal out of ASCO abstract release day.

The importance of the ASCO abstract is also ruled by tradition. Back in the old days when ASCO selectively disclosed this information, institutional investors with privileged access to the data could make real money well before the general public had its chance.

To make this process even more complicated, ASCO purposely withholds certain late-breaking abstracts, delaying the releases until the meeting begins.

Is this investor fixation on ASCO and its abstracts the reason why biotech and drug stocks run up in advance of the ASCO meeting?

It sure is. This year's "hot" ASCO stocks -- defined by their surging stock prices this spring -- include Celldex Therapeutics (CLDX - Get Report), Keryx Pharmaceuticals (KERX - Get Report) and Delcath Systems (DCTH - Get Report). Each of these companies will be presenting data at next month's ASCO meeting and each stock is on a huge run.

Other ASCO-related stocks making a more modest run ahead of the meeting include Pharmacyclics (PCYC - Get Report), Ziopharm (ZIOP - Get Report), Arqule (ARQL - Get Report) and Sunesis Pharmaceuticals (SNSS - Get Report).

Does the actual ASCO meeting really matter if investors get the information they need in advance from the research abstracts?

Yes, I think the ASCO meeting does matter. Remember, these abstracts were submitted months ago, so the clinical data you'll read about Thursday might be outdated by the time the meeting starts next month. That's why final presentations with updated data at the meeting are important.

The ASCO meeting can also be a telling barometer for the relative importance of clinical data. When Genentech (now Roche) presented Herceptin breast cancer data to a packed auditorium of 15,000 people a few years ago -- nearly everyone stood up and clapped -- you knew that Herceptin was going to be very big deal.

Conversely, a company that puts up a research poster in the corner of a cavernous exhibition hall and is then ignored by almost everyone can be signal that this avenue of research isn't ready to make headlines.

2 of 3

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!
SYM TRADE IT LAST %CHG
ZIOP $11.59 2.90%
ARQL $1.84 -2.40%
CLDX $27.03 5.80%
DCTH $1.19 -6.30%
KERX $12.27 0.90%

Markets

DOW 18,242.93 +110.23 0.61%
S&P 500 2,110.74 +6.24 0.30%
NASDAQ 4,990.2350 +26.7080 0.54%

Partners Compare Online Brokers

Free Reports

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