This Day On The Street
Continue to site
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

Biodel Offers Opportunity in the Growing Insulin, Glucagon Markets

Novo Nordisk has had sales of $2.3 billion in the first nine months of the fiscal year for Novo Nordisk, representing 12% growth. Novo continues to be the leader in the diabetes market with a huge portfolio of insulin drugs. The company had a global insulin share of 48%, including 40% in the United States as recent as the third quarter. More importantly, in what is considered new generation treatments, Novo has a share of 46% globally and 39% in the United States.

Biodel is hoping its treatments will improve the time for diabetes patients when injecting insulin. Old-school insulin injections take 120 to 180 minutes for patients. New, rapid-acting methods take 50 to 70 minutes, which greatly boosts prior performances. However, Biodel has shown in several studies that it can improve on the success of Novo and Eli Lilly with shorter delivery times. Results have also shown that those taking the insulin need a lower amount throughout the day from Biodel versus other companies existing insulin injections.

The small setback from Biodel's clinical trials was a higher pain level at the point of impact than other existing drugs. This higher rate was minimal and was only listed as "mild" pain for those that reported it. Better yet, Biodel's BIOD-250 provided better injection site results than other Biodel drugs such as BIOD-090 and BIOD-100.

On Dec. 17, Biodel announced it had entered a manufacturing agreement with Becton Dickinson (BDX). Biodel shares were up by double digits on the announcement, which should power an already strong pipeline. The deal gives Biodel exclusive rights to Becton Dickinson's BD Uniject SCF Disposable Auto-Disable Injection System for delivery of liquid glucagon to treat severe hypoglycemia. Even though the glucagon market isn't as big as insulin, it presents a large opportunity for a company with a market capitalization under $50 million.

Every year, over 200,000 people are hospitalized for severe hypoglycemia. Fewer than 10% of high-risk patients carry an emergency kit. The current kits are bulky and costly, a problem that could be solved by Biodel. A current market worth $125 million in the United States is believed to expand significantly, according to Biodel.

Look at this list of upcoming catalysts:

  • First half of 2014: top-line data phase 1 concentrated ultra-rapid-acting insulin
  • First half of 2014: possible phase 3 trial for RHI ultra-rapid-acting insulin
  • Second half of 2014: submit IND glucagon
  • Second half of 2014: initiate pivotal clinical trial glucagon
  • 2015: submit NDA glucagon

Many investors have taken a chance on Biodel because of the insulin market. However, while the insulin market is huge and could see revenue in 2015 or 2016 for Biodel, glucagon appears on the fast track and is a growing need that the company is addressing. Positive results in 2014 and 2015 could boost shares fast.

This is one stock under $5 I might be investing in for 2014.

At the time of publication the author had no position in any of the stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

2 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
Dividend Stock Advisor

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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BIOD $0.41 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs