KaloBios Pharmaceuticals (NASDAQ:KBIO)

CAPS Rating: 4 out of 5

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Player Avatar TSIF (99.96) Submitted: 3/29/2014 5:52:20 PM : Outperform Start Price: $2.67 KBIO Score: -43.64

KaloBios Pharmaceuticals gave investors/speculators a rough time in January, diving 50% and bottoming at about $2.60 after a failed Phase II for KB-003 for asthma. It gained a $1 back over Feb into March, but has been bleeding that back off again to return close to where it bottomed....leaving any who rode the rides, most likely seasick.

There are, however, other drugs in the pipeline, including KB001-A which is in a Phase II clinical trial for the prevention and treatment of pseudomonas aeruginosa infection in mechanically ventilated and cystic fibrosis patients. (Try saying that out loud!) Topline Data should be due soon.

There are other drugs in the pipeline, much further up. They have a good partner in Sanofi Pasteur S.A. Cash bleed, important in a biopharm is fairly healthy, with a little over a year left, although many biopharms raise funds earlier if they can get some attention to the stock.

I believe the last 10% or so of the selloff, was the recent biopharm "correction".....if the markets get healthy again, it should gain this back. I don't, however think the selloff in biopharms is done yet, I hopeful it will be an end of quarter cycle next week and then back to business, but sentiment/charts have not confirmed a bottom.

Fairly early stage development, some potential for a trade if metrics play out.....could be in serious trouble if KB001-A does not progress further.... (Typical high risk Biopharm)

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Member Avatar stemcells2011 (87.79) Submitted: 4/4/2014 4:57:06 PM
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I will continue to hold my shares then, thank you!!!

Member Avatar TSIF (99.96) Submitted: 4/4/2014 6:44:59 PM
Recs: 3

More bio-bleed broad based today. Sometimes the more beaten down can hold better, but few survived at least some selloff today.
Hi Risk BIOPHARM, but in my opinion, clearly not as valuable as ZZ's, it has a decent risk/reward metric.

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