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: Amarin or Arena Takeout?

@glopolon asks, "$ARNA = $AFFY? More or less?"

Affymax (AFFY) shares dropped from $14 to $10 in the two weeks after FDA approved Omontys, a once-monthly anemia drug, this past spring. The stock has recovered a bit but is still down about 6% since Omontys' approval. So, yeah, Arena and Affymax are acting in similar ways post-drug approval.

Takeda sells Omontys on behalf of Affymax but how the product's sales will be reported publicly each quarter is not yet clear. Affymax spokeswoman Sylvia Wheeler told me that the company and Takeda are still working through the disclosure process. Affymax reports third-quarter financials in August.

Regarding Ampio Pharmaceuticals (AMPE) and the looming expiration of an insider stock lockup, Joe remarks, "Funny that the CEO and CSO's press release regarding voluntary extension of their lock-up was not followed by an SEC filing. I get the sense that AMPE's CEO and CSO might very well change their minds and not inform the shareholders. That press release is meaningless."

Good point. Even if Ampio's CEO and CSO do extend their lock-up agreement for another six months, plenty of other company insiders remain free to sell millions of shares starting July 15.

James asks, "Any chance you are going to take another look at Nymox Pharmaceuticals (NYMX)?"

Nymox remains opaque about the clinical development of NX-207, its experimental drug for benign prostatic hyperplasia, or enlarged prostate. When I last wrote about Nymox in February 2011, CEO Paul Averbeck told me he expected to file NX-207 for FDA approval in 2012, assuming the ongoing phase III studies were positive.

But since Nymox doesn't provide any meaningful updates about the progress of the phase III trials, it's impossible to say whether the company is on track to meet its development timelines for NX-207. I have my serious doubts, particularly since Nymox has never disclosed much about the drug, and what it has disclosed makes little sense.

Why trust a drug company unwilling to be transparent with its shareholders or potential investors?

Andrew I. asks, "Will Chelsea Therapeutics (CHTP) ever recover? Lost half of the value today and have to do a new study. Down to about 85 cents today. Think a lot of the bad news was already priced in and that this news is really not a surprise. I can understand why the company would try to re-work their current study 306B but not surprised at all the FDA said no deal. What are your thoughts?"

4 of 5

Select the service that is right for you!

COMPARE ALL SERVICES
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 16,979.13 +59.54 0.35%
S&P 500 1,986.51 +4.91 0.25%
NASDAQ 4,526.4820 -1.0320 -0.02%

Brokerage Partners

Rates from Bankrate.com

  • 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