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: Mela Sciences

Stocks in this article: MELA DCTH DSCO KERX CYTX ACHN VRUS

@Biopharminvest tweets, "@adamfeuerstein any comment on KERX potential co. selling?"

As I wrote on Wednesday, perifosine could be a $600 million-ish colon cancer drug if the ongoing phase III study is a success, and the drug is approved. So yes, there is potential for Keryx Pharmaceuticals (KERX) to find a buyer for the company, which is what CEO Ron Bentsur called his top priority.

I'd caution against using a Keryx takeout as the sole basis for your investing thesis. For starters, perifosine doesn't have the strongest intellectual property protection. It's an old drug with a composition of matter patent that expires in 2013. If approved, Keryx will be able to extend the drug's patent life out by at least five years, perhaps more if new method-of-use patents are granted.

Whether potential acquirers see this limited patent life as a liability and reason to walk away from a deal is a possibility you need to consider.

Put aside the Keryx buyout speculation and just focus more narrowly on the looming results from the perifosine phase III colon cancer study expected in the first quarter of next year. Super positive results, and Keryx's stock is an easy double or more from here. The hard part, of course, is trying to predict whether perifosine is going to work or not, but that's why biotech investing is so exciting!

Randy M. emails, "Is this the time that Discovery Labs (DSCO) finally gets Surfaxin approved?

You think the fourth attempt at FDA approval finally gets Surfaxin across the finish line? I'm rooting for these guys, if only so that another of my 2011 biotech predictions comes true.

Do I have confidence that Discovery will finally convince FDA to approve Surfaxin? Absolutely not, and neither should you, based on the company's dismal track record. If there's a way to screw up approval for the fourth time, Discovery will find a way.

If Surfaxin is approved, I do have a suggestion for Discovery. Since the infants in the original Surfaxin studies are now adults, they can promote the drug if it's approved.

--Written by Adam Feuerstein in Boston.

>To contact the writer of this article, click here: Adam Feuerstein.

>To follow the writer on Twitter, go to

>To submit a news tip, send an email to:

Adam Feuerstein writes regularly for TheStreet. In keeping with company editorial policy, he doesn't own or short individual stocks, although he owns stock in TheStreet. He also doesn't invest in hedge funds or other private investment partnerships. Feuerstein appreciates your feedback; click here to send him an email.
3 of 3

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 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

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