Shorting MIPI sure is turning into a nightmare..
News sources keep pumping it back up.
UPDATE 1-Molecular Insight shares jump on imaging agent dataWed Jun 17, 2009 12:55pm EDT
By Anand Basu
BANGALORE, June 17 (Reuters) - Shares of Molecular Insight Pharma Inc (MIPI.O) surged as much as 80 percent on Wednesday, a day after the biopharmaceutical company said its imaging agent, Trofex, had the potential to both detect and treat metastatic prostate cancer.
"They can kill two birds with one stone," Boenning & Scattergood analyst Debjit Chattopadhyay said.
"If you compare it with current standard of care, it's a very dramatic advancement."
Typically, a patient needs to go through five different tests -- including magnetic resonance imaging, bone scan and ultrasound -- to find the metastasis, while Molecular Insight's product can collect the data within 2 hours of the injection, Chattopadhyay said.
Trofex, which is in an early-stage trial, has the potential to treat metastatic prostate cancer when labeled with a therapeutic isotope, the company said.
"Right now, they are using an iodine isotope which is meant for imaging, but they can easily change the isotope to another iodine isotope which is used for therapy," Chattopadhyay said.
The company said two Trofex compounds rapidly detected metastatic prostate cancer lesions in soft tissues and bone.
"Right now there is not a diagnostic tool available that allows you to pick up metastasis," Wachovia analyst Aaron Reames said. There are 2.5 million patients for prostate cancer, and a small amount charged by Molecular Insight can generate pretty large net present value, he added.
Given the favorable data, the Cambridge, Massachusetts-based company plans to conduct additional studies to investigate the performance of the radio-labeled small molecules in patients with metastatic prostate cancer, Babich added.
Shares of the company touched a high of $7.90 before shedding some gains to trade up $1.67 at $6.06 Wednesday afternoon -- making it the second highest percentage gainer on Nasdaq. (Editing by Anne Pallivathuckal, Himani Sarkar)