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!

Biotech Stock Mailbag: Vivus

"Pump and dump." That sounds about right.

It should be very clear to anyone who spends an hour tops digging into Cel-Sci's fundamentals, including the appallingly sparse data supporting the company's head-and-neck cancer drug Multikine, that this company is a running joke. No one other than penny stock day traders is seriously interested in Cel-Sci. Have fun with Cel-Sci if trading penny stocks is your thing (and say hello to Timmy Sykes for me). Otherwise, stay away.


Via Twitter, @DLesh asks, "Is Pops going to hit big for me with Vivitrol? I am long and strong Alkermes (ALKS)."

I like Alkermes, although I like the stock a lot more when it was trading at $10 this past spring than I do now that shares are around $14.

The "Pops" @DLesh mentions is Alkermes CEO Richard Pops, who gets two backslaps from me. First, for being one of the only biotech/drug CEOs on Twitter (follow him @popsalks); and two, for the overwhelmingly positive vote last week from the FDA advisory panel which reviewed the company's Vivitrol opioid therapy for the treatment of opioid addiction.

Well done, Senor Pops!

I have reasons to be less bullish on Alkermes at $14: Can Alkermes turn Vivitrol opioid into a successful and profitable product? Vivitrol for alcohol addiction has not been a moneymaker for the company. The new opioid addiction indication should garner more acceptance from addiction treatment specialists, but is that enough to make the product a meaningful growth driver?

Alkermes still derives the bulk of its revenue and stock market value from the royalties on Risperdal Consta sales received from Johnson & Johnson (JNJ). However, Consta sales and growth are under pressure from other newer schizophrenia drugs, including J&J's once-monthly version of Risperdal.

Lastly, Alkermes' stock price could get another a short-term bump if FDA approves the diabetes drug Bydureon on Oct. 22. (Alkermes will receive royalties on Bydureon sales.) Bydureon's commercial prospects, however, are up in the air because competition in the so-called GLP-1 market is fierce.

Looking further ahead, watch Alkermes' internal drug pipeline. Pops has the company working on some interesting projects. Right now, investors aren't paying much attention or giving Alkermes credit for the work, which is mostly in early stages.

2 of 6

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
CTIC $2.34 0.00%
ALKS $70.25 0.00%
BCRX $10.20 0.00%
CVM $1.04 0.00%
OREX $5.64 0.00%

Markets

DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

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