This Day On The Street
Continue to site
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

Biotech Stock Mailbag: Ranking Cheap Biotechs

BOSTON ( TheStreet) -- A large share of the email for this week's Biotech Stock Mailbag focused on my list of 10 Cheap Biotech Stocks That Could Soar.

Steve L. writes, "Thanks for the article Adam! I'm always fascinated with biotech and I tried to read and understand your articles as much as I can. I was wondering if you would offer one more advice on this article. Can you rank them in terms of their potential to succeed?"

I struggle with ranking these 10 stocks in any meaningful way because they're all so different. I chose to highlight these stocks, however, because I felt that their respective drug development programs had a viable chance for success, while fully recognizing the substantial hurdles that lay ahead. Realistically, we know that a good number of these drugs will blow up -- that's the harsh nature of the sector -- but I believe there are winners amongst these 10 stocks.

Now, which of the 10 stocks is more likely to succeed than the others? The following ranking is totally subjective and certainly subject to debate and revision.

The bottom five i.e. the highest risk, in order from most to least:

10. Athersys (ATHX) 9. Neptune Technologies (NEPT) 8. Repros Therapeutics (RPRX) 7. GTx (GTXI) 6. Celldex Therapeutics (CLDX)

The top five, again ranked most to least risky:

5. Aastrom Biosciences (ASTM) 4. Celsion (CLSN - Get Report) 3. Cyclacel Pharmaceuticals (CYCC - Get Report) 2. Derma Sciences (DSCI - Get Report) 1. YM Biosciences (YMI)

As I re-read this ranking to myself, I can already see where some juggling of places would be justified. This is hard to do. I decided to place YM Biosciences at the top because CYT387's mechanism of action is well understood and the drug could be a viable treatment for myelofibrosis even if the controversial anemia benefit turns out to be a zero. (Just not as commercially successfully.)

Derma Sciences grabbed the No. 2 spot because it's hard to find fault with the wound-healing data from a randomized, controlled phase II study. Derma's ranking may be too high because a phase III study hasn't started yet.

Athersys and Neptune are on the bottom only both have a lot to prove and a long way to go.

If you a thoughts on how these stocks could be better ranked by risk, send me your list and I'll publish in a future Mailbag.

Chris L. asks, "Very interesting commentary on Cyclacel. When does the trial conclude?"

Cyclacel is enrolling patients in the phase III study of sapacitabine in elderly patients with acute myeloid leukemia but the company has not provided specific guidance on when it expects data to be announced. This is a study with an overall survival primary endpoint. What Cyclacel has said about timing is that an interim analysis would be conducted when 50% of the enrolled patients die.

1 of 2

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
SYM TRADE IT LAST %CHG
APRI $1.50 -3.85%
CLSN $2.75 5.80%
CYCC $0.79 -6.00%
DSCI $6.58 -6.10%
SGMO $12.55 0.24%

Markets

DOW 18,254.71 -31.03 -0.17%
S&P 500 2,130.82 +4.97 0.23%
NASDAQ 5,090.7940 +19.0510 0.38%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs