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
TheStreet Open House

Biotech Stock Mailbag: Exelixis, Protalix, Arena

Stocks in this article: EXEL PLX ALXA ARNA VVUS MDVN BMRN ALXN GEVA

Adam's mistakes: The Vivus Qnexa decision wrong (he predicted approval) and Discovery Labs' (DSCO) Surfaxin. He guessed rejection but the drug was approved. You can find Adam on Twitter at @crusadernz.

Finally, a tie for third place between Patrick Crutcher and Joseph Lee. Both gents compiled a 12-3 record. Patrick is a statistics PhD candidate at UCLA and co-founder of Chimera Research Group, a subscription-based biotech investing web site. He's on Twitter at @chasingthealpha.

Joseph is also a graduate student but in San Francisco and the founder of FDATracker.com, a web site focused on analyzing FDA drug approval decisions. Hence, his strong showing in the contest. Joseph's Twitter handle: @fda_tracker.

Congrats to all the winners and a big THANK YOU to everyone who participated in the contest. I'll definitely organize another one soon.

Oh, if you're wondering how I performed in my own contest, well, I'm proud to say I finished with an 11-4 record, tied with several others for fourth place.

Dave B. asks, "How much value should we place in Protalix's (PLX - Get Report) pipeline? Seems like these rare treatments are the new moneymakers. Gaucher first, then others next? Is this a solid long-term buy?"

The business of developing new therapies for orphan (rare) diseases is exploding, agreed. These drugs treat relatively small numbers of patients but do so at super-premium prices with no reimbursement risk. But if you're interested in investing in orphan disease stocks, look at Alexion Pharmaceuticals (ALXN) and BioMarin (BMRN), perhaps Synageva Biopharma (GEVA), before Protalix.

Protalix is the me-too orphan drug company. By that I mean Protalix's pipeline is filled with drugs that are late to the market. Elelyso, approved this week for Gaucher disease, faces competition from currently marketed therapies Sanofi's Cerezyme and Shire's Vpriv.

The next drug in Protalix's pipeline is PRX-102, a therapy for Fabry disease but again, Sanofi (SNY) already sells Fabrazyme and Shire (SHHPGY) sells Replagal for the same disease. PRX-102 is still in preclinical development, meaning it's years from the market, if ever.

Protalix is also developing a bio-defense drug and a biosimilar version of the rheumatoid arthritis drug Enbrel. The former might be interesting although bio-defense drugs only have fickle, budget-constrained governments as customers; the latter will almost certainly run headfirst into generic competition and growing market share for the emerging class of rheumatoid arthritis pills.

5 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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!

Markets

DOW 17,416.85 +225.48 1.31%
S&P 500 2,021.25 +19.09 0.95%
NASDAQ 4,683.4070 +45.4130 0.98%

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