Northfield Laboratories (NFLD)

Northfield Laboratories is a development stage company engages in the research, development, testing, manufacture, marketing, and distribution of hemoglobin-based blood substitute products. Its primary investigational drug PolyHeme is a human hemoglobin-based temporary oxygen-carrying red blood cell substitute and it is in development stage for the treatment of life-threatening blood loss when an oxygen-carrying fluid is required and red blood cells are not available.

As company is in the growing phase with no drugs in the market, its stock price movements is expected to be highly correlated with the progress of its investigational drug PolyHeme. The fact that the company could not achieve its objectives from the results of the crucial Pivotal Phase III trial in December’06 saw an immediate dent in its stock price by 50% in the after-hours trade. However, the company promises to sort out the problem and come out with the final data in five to six weeks. Despite the hiccup, the company is optimistic about filling its Biologics License Application in the first half of 2007.

Traumatic Brain Injury contributes to a substantial number of deaths and cases of permanent disability annually. Judging by the uniqueness of the drug, it is believed to have tremendous potential catering to patients in immediate need of blood. However, the current uncertainty over its recent unsuccessful trial on PolyHeme has casted a shadow on its FDA approval in 2007.