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I hope these stocks dance with the one that brung 'em

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May 08, 2010 – Comments (2) | RELATED TICKERS: AEZS , KERX , SPPI

Enough ranting about the macroeconomic picture, it feels good but I'm sure it is boring. Today I want to take a deeper dive into the companies I am headed into ASCO with.

The ASCO Annual Meeting 2010 abstracts will be available after 6pm EDT on May 20th.

It can be difficult to fundamentally evaluate pharma/biotech companies, especially ones without a product on the market. You can't just take a quick peek at their P/E or PEG ratio, it is more like the Hope/Dream ratio. You need to look at their burn rate, cash reserves and debt levels.

For drugs in Phase3 one might estimate how much money their drugs will bring in if approved, and try to judge how likely the FDA is to approve by looking at Phase2 and Phase1 trial data.

You can investigate their management and see how successful they have been in the past at getting products to market and establishing partnerships.

While my purchase of these four companies was mostly based on the upcoming ASCO conference, I need to learn more about them so that I can decide whether or not to keep a position after that catalyst has passed.

I have begun to take a closer look at Keryx, AEterna Zentaris, Sunesis, and Spectrum.

Continued here

2 Comments – Post Your Own

#1) On May 10, 2010 at 6:39 PM, EnigmaDude (53.41) wrote:

DT,

You probably already saw this writeup from Seeking Alpha, but it helped to persuade me to buy a few shares of KERX.  I am looking at adding some shares of AEZS as well if I can find some extra cash laying around.  But I am a bit cautious about putting too much faith into one potential cancer drug (perifosine). 

On the other hand, this Seeking Alpha blog does a great job of highlighting the reasons why it might be a good investment.  And then your comments also help!  Thanks for sharing.

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#2) On May 12, 2010 at 10:49 AM, DarkToast (32.00) wrote:

Perifosine isn't an entirely new drug either. I am looking at this mostly as a momentum play leading into ASCO.

They Keryx conference call about earning was really good.

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