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
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Quick Take: Drugs IPOs Depend on Deals

Stocks in this article: BLUECELGPTCT

NEW YORK ( TheStreet) -- TheStreet's Debra Borchardt is with Francis Gaskins, Director of Research for Equities.com, discussing the three biotech IPOs this week.

BlueBirdBio (BLUE) has a $75 million offering and just completed a deal with Celgene (CELG), which bodes well for the company, Gaskins says.

BlueBirdBio focuses on cancer treatment by taking a patient's blood and modifying it to attack cancer cells, which could be a huge breakthrough for the industry. According to Gaskins, it is possible for the company to succeed on its own, but the deal with bio-giant Celgene will certainly help.

PTC Pharmaceuticals (PTCT) also has its IPO this week with a $100 million offering. This company focuses on treating muscular diseases and has a low valuation, at just 2.5 times book value.

While Gaskins says that he still prefers BlueBirdBio to PTC, he likes that this company has several partnerships and that it is "making progress in an area for which there is little known treatment."

Unfortunately for Regado (RDGO), the company has no collaborations with other biotech names, meaning that they will have no support and will have to do everything on their own.

Making things a little more dicey according to Gaskins, is that the company plans to use the $75 million offering to fund a phase three trial, which has yet to provide a completion date.

While the first two trials have seemed to go well and the valuation is low, Gaskins warns potential investors that without any collaborations or a set completion date for phase three trialing, this name is riskier than the first two.

Bret Kenwell currently writes, blogs and also contributes to Rocco Pendola's Weekly Options Newsletter. Focuses on short- to intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

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!
DOW 17,810.06 +91.06 0.51%
S&P 500 2,063.50 +10.75 0.52%
NASDAQ 4,712.97 +11.1030 0.24%

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