Continue reading Genzyme Rejects Sanofi-Aventis's Buyout Proposal

Genzyme Rejects Sanofi-Aventis's Buyout Proposal originally appeared on BloggingStocks on Mon, 30 Aug 2010 10:00:00 EST. Please see our terms for use of feeds.

Continue reading Amgen Posts Better-Than-Expected Q2 Earnings

Amgen Posts Better-Than-Expected Q2 Earnings originally appeared on BloggingStocks on Thu, 29 Jul 2010 17:00:00 EST. Please see our terms for use of feeds.

Continue reading Closing Bell: Kicking Off Earnings Season, With a Thud (AA, MMR, EXXI, AOL, PEIX, CYCC, MNKD)

Closing Bell: Kicking Off Earnings Season, With a Thud (AA, MMR, EXXI, AOL, PEIX, CYCC, MNKD) originally appeared on BloggingStocks on Mon, 11 Jan 2010 16:00:00 EST. Please see our terms for use of feeds.

Continue reading Biogen Idec names new chairman, announces positive drug test results

Biogen Idec names new chairman, announces positive drug test results originally appeared on BloggingStocks on Fri, 11 Dec 2009 11:40:00 EST. Please see our terms for use of feeds.

Continue reading Closing Bell: The bull after the lull (AIG, DELL, GE, KFT, OSIR, SFD)

Closing Bell: The bull after the lull (AIG, DELL, GE, KFT, OSIR, SFD) originally appeared on BloggingStocks on Tue, 08 Sep 2009 16:00:00 EST. Please see our terms for use of feeds.

Biotechs are fascinating. They have such great promise, yet very few of them actually turn those promises into money. Cures for all types of cancers always seem imminent with promising (there's that word again) results from mice or small control groups. Phase I testing is completed and all kinds of good stuff seems possible. Then something usually happens. Usually not very good things.

Most of the time, it's discovered that what works in mice doesn't work in men (or women). Or that the group was too small for meaningful data and when a larger group is studied, the efficacy isn't there. Or as soon as there's a bounce in the stock price, much more stock is issued and dilution occurs.

Continue reading Comfort Zone Investing: Beware pretty promises when buying biotechs

Comfort Zone Investing: Beware pretty promises when buying biotechs originally appeared on BloggingStocks on Sat, 15 Aug 2009 10:30:00 EST. Please see our terms for use of feeds.

Venture capital funds found 612 companies in which to invest $3.67 billion in Q2. Of this, $1.5 billion (41%) was first-time financing, according to a report by PricewaterhouseCoopers and the National Venture Capital Association. This is only slightly ahead of the action in Q1, in which 141 transactions were first-time, and far behind the pace we enjoyed earlier this decade.

The biotech sector was the big winner in a shrinking market, with funding up 54% to $888 million over 85 deals. The software business was flat quarter-over-quarter at 4644 million over 135 transactions. Investments in internet companies fell 15% to $524 million via 124 deals. Clean technology showed considerable growth, up 15% to $274 million, with 42 transactions closed.

Continue reading VC first-time infusions hit 15-year low

VC first-time infusions hit 15-year low originally appeared on BloggingStocks on Tue, 21 Jul 2009 14:20:00 EST. Please see our terms for use of feeds.

Venture capital firms Braemar Energy Ventures and Lightspeed Venture partners led the Series C round for Solazyme, Inc., putting $57 million in fresh capital into the company. This brings total outside financing to above $76 million for the algae-derived biofuels company ... and shows yet another sign of life for private investment in green technology.

Solazyme uses microalgae biotechnology for the production of clean fuels, green chemicals, edible oils, and wellness products. The company seeks to "answer the increasing global demand for clean and renewable sources of oil" through sustainable and scalable technologies. The company's renewable oil production process relies on industrial fermentation, in which the algae consume nonfood biomass and industrial byproducts, which the algae converts to oil. End products include renewable diesel, biodiesel, and jet fuel.

Continue reading VC firms look to make green on green with $57m play for Solazyme

VC firms look to make green on green with $57m play for Solazyme originally appeared on BloggingStocks on Tue, 09 Jun 2009 12:30:00 EST. Please see our terms for use of feeds.

Continue reading Should you invest in low priced biotech stocks like Dendreon?

Should you invest in low priced biotech stocks like Dendreon? originally appeared on BloggingStocks on Wed, 15 Apr 2009 12:45:00 EST. Please see our terms for use of feeds.

Continue reading Baxter is one company that's on the mend

Baxter is one company that's on the mend originally appeared on BloggingStocks on Fri, 13 Mar 2009 10:30:00 EST. Please see our terms for use of feeds.

Just as President Obama lifted the executive order banning the use of embryonic stem cells for research, Roche and Genentech (NYSE: DNA) appear to have reached an agreement on Roche's bid to acquire the 44% of DNA that Roche does not currently own.

Shares of biotech companies engaged in stem cell protocols rallied after the Obama announcement. While most of these companies are small in size with stock prices below $2 per share, the announcement gave impetus to price increases of 17% to 100%.

Continue reading Beware biotech

Beware biotech originally appeared on BloggingStocks on Tue, 10 Mar 2009 14:40:00 EST. Please see our terms for use of feeds.

"Celgene (NASDAQ: CELG) reported their fourth quarter and year end numbers which showed strong revenue growth." observes biotech sector expert John McCamant.

The editor of The Medical Technology Stock Letter explains, "We remain excited about CELG's growth prospects and management's ability to deliver the goods.

"Total revenue for the quarter grew 50% to $623 million, with the primary driver being Revlimid sales of $369.4 million. Sales of their two other drugs, Thalomid and Vidaza generated $126.8 million and 69.7 million, respectively.

Continue reading Celgene (CELG): Strong growth in biotech

Celgene (CELG): Strong growth in biotech originally appeared on BloggingStocks on Mon, 23 Feb 2009 11:40:00 EST. Please see our terms for use of feeds.

As an investor, I hate crowds. If a stock or sector that I like attracts a crowd, I know it is time to leave. As they say, the sheep are usually the buyers at the top.

Now, we need sheep to help drive prices of our holdings higher, but at some point it is time to jettison. Nothing goes up forever, and the best signal I have found over the years is to sell when the sheep are buying.

This year the sheep are being told to buy the biotechnology sector.

That advice may be a bit late in coming. 2008 was a disastrous year, but biotechnology did very well. It is that performance that is now attracting the sheep.

Continue reading Don't be a sheep -- beware of biotech (VPHM)

Don't be a sheep -- beware of biotech (VPHM) originally appeared on BloggingStocks on Mon, 09 Feb 2009 18:00:00 EST. Please see our terms for use of feeds.

Genentech is among the leading biotech companies in the world. It is engaged in the discovery, development, manufacturing and commercialization of pharmaceutical products intended for treatment of previously untreatable illnesses.

In 1990, Roche acquired a 56% stake in the company. Since that time, the relationship between the two companies has been a model for similarly structured combinations.

Roche's offer of $89 per share for DNA was characterized by DNA as significantly undervaluing the company.

But this was hardly a "hit the road, Jack" response. DNA's board of directors has been encouraging the two sides to continue discussions, and recent comments suggest that the deal could come together soon.

Continue reading Don't sell your Genentech (DNA) stock just yet

Don't sell your Genentech (DNA) stock just yet originally appeared on BloggingStocks on Wed, 14 Jan 2009 11:05:00 EST. Please see our terms for use of feeds.

There were a few stocks in 2008 that exhibited great performance despite horrible market conditions. And these gems of 2008 may provide investors with a safe haven of sorts for 2009.

In fact, we are already hearing analysis of the year to come suggesting that biotechnology stocks will be the place to be for positive returns in the new year.

One such name to consider is Amgen (NASDAQ: AMGN).

Founded in 1980, AMGN is one of the largest biotechnology companies in the market. It has a stable of proven drugs that provides significant profits, and a pipeline of opportunities that should provide reasonable growth in the future.

Shares of AMGN have gained approximately 20% during the last year as investors recognized the value of current profits combined with future growth. Interestingly, the company really gained traction during the second half of the year as the rest of the market was imploding.

Even with the gains, AMGN is a compelling investment story.

Shares trade for 15 times trailing earnings and only 12 times forward earnings. That means you can buy shares for a price-to-earnings ratio that is lower than its growth rate.

One reason for the optimism in the stock in 2008 was the progress made on its osteoporosis drug, Denosumab. Analysts are expecting the drug to be a blockbuster.

Denosumab has done well in trials, and AMGN recently applied for FDA approval to bring the drug to market. Given the expected 10-month FDA review and processing period, AMGN is only a year or so away from the sales benefits of this new drug.

Continue reading Amgen offers safety, growth in 2009

Amgen offers safety, growth in 2009 originally appeared on BloggingStocks on Tue, 30 Dec 2008 12:45:00 EST. Please see our terms for use of feeds.

Continue reading Closing Bell: Market up, GM up slightly

Closing Bell: Market up, GM up slightly originally appeared on BloggingStocks on Fri, 12 Dec 2008 16:00:00 EST. Please see our terms for use of feeds.

It's been a tough year for many industries -- there's no denying it. Retailers of all stripes, oil companies, construction firms, financials, basic materials companies -- you name it, it's down.

So, are there any safe havens?

Historically, in times of economic uncertainty the pharmaceutical industry, along with consumer staples, is often the "go to" place where, at a minimum, you can count on a nice dividend yield to shield your portfolio from gigantic losses. Not anymore.

In this downturn even stalwarts such as Merck (NYSE: MRK) and Pfizer (NYSE: PFE) trade near their multi-year lows, despite offering generous yields.

What about biotechs? That sector has performed much better.

However, one of my favorite biotech names, Elan (NYSE: ELN), is struggling.

At the start of the year, ELN was looking strong. Its stock was up by 50% by mid-summer. Since then shares have collapsed and now trade in the mid-single digits.

I profiled the company on July 2, with one caveat: If late-stage testing of a new Alzheimer's drug called bapineuzumab doesn't go as planned, then ELN will trade lower.

About a month later, the company announced that the results of a Phase II clinical study showed the drug does safely treat the symptoms of Alzheimer's disease, but the results were not statistically significant, and the 234-person Phase II study would have to be broadened to a much larger Phase III study to be considered for FDA approval.

The shares fell 17% on the announcement, but that was just the start. As is often the case, when it rains, it pours.

Continue reading Biotech no longer a safe haven: Elan (ELN) falls on hard times

Biotech no longer a safe haven: Elan (ELN) falls on hard times originally appeared on BloggingStocks on Fri, 12 Dec 2008 15:01:00 EST. Please see our terms for use of feeds.

This post is part of a series featuring bargain stocks that are worth a look now. See more Cheap Stocks.

Every time I write about Monsanto Company (NYSE: MON), I get e-mails from vocal opponents of genetically modified foods. It strikes me as unusual, if only because there are so many companies out there doing business in an ethically questionable manner, and I'm rarely e-mailed about most of them. But, hey -- I can't blame anybody for being protective of the food supply.

If you're morally opposed to Monsanto, I definitely don't recommend you invest in it. Otherwise, there are valid reasons for taking a closer look at this agricultural chemicals firm. For example, on October 21, S&P Ratings hiked its long-term ratings on MON from "A" to "A+," citing the "expected continuation for favorable business trends ... a very strong market position ... and an impressive pipeline of new products that should underpin strong future earnings and cash flow."

Add sugar cane to the pipeline; Monsanto recently announced its intention to acquire Brazil's Aly Participacoes Ltda for $290 million. With sugar cane emerging as a popular alternative to corn for ethanol production, the acquisition makes sense. Carl Casale, the company's head of global strategy and operations, observed, "... we think that the biotechnology traits that we've invested in [corn] can bring a lot of value to sugar, as well."

Continue reading Cheap Stocks: Monsanto Company

Cheap Stocks: Monsanto Company originally appeared on BloggingStocks on Mon, 08 Dec 2008 09:20:00 EST. Please see our terms for use of feeds.

"The medical arena has long been my favorite sectors; perhaps the best opportunities within the medical sector will be with companies who provide life-saving products for the treatment of serious diseases," says Dave Dyer.

In The Dave Dyer Newsletter, he explains, "That is why Celgene (NASDAQ: CELG) is an excellent choice in this economy." Here's his look at this "recession-resistant" company.

"Celgene is a multinational biopharmaceutical company with a $29 billion market cap and no debt. Revlimid is their blockbuster drug with multi-billion dollar potential. It was first approved by the FDA in 2005, and it has many good years of patent protection ahead of it.

"Revlimid delays the onset of progression of deadly diseases -- leprosy and multiple myeloma. No wonder it is worth $6,000 per month. It is a close derivative of their other drug Thalomid. This drug was used by another company about 50 years ago to treat morning sickness in pregnant women and caused numerous birth defects.

"Despite a recession, we believe that demand for its products will remain strong. For example, if you have multiple myeloma, you would probably do just about anything before missing a payment for your monthly dose of Revlimid.

Continue reading Celgene (CELG): Blockbuster potential?

Celgene (CELG): Blockbuster potential? originally appeared on BloggingStocks on Thu, 27 Nov 2008 14:30:00 EST. Please see our terms for use of feeds.

Ted Allrich is the founder of The Online Investor and author of the just released book: Comfort Zone Investing: Build Wealth and Sleep Well at Night. In this weekly column, he'll offer advice to investors who are just getting started.

In today's market it seems every stock is a bad stock. Doesn't matter what you buy. It goes down. But I'm not talking about good stocks caught in a bad market. This is about bad stocks with no earnings and no real prospects, the ones with great stories but nothing else. Lots of promise, but no profits.

There are lots of bad stocks, many more than good ones. Any prudent investor should avoid them. But most of us don't. There's always a story that seems so compelling, so right, so possible, that many of us buy a bad stock even though it has no earnings, or racked up huge losses. It's only human to hope for the best even when the facts tell you the odds are against success.

Continue reading Comfort Zone Investing: How to buy bad stocks

Comfort Zone Investing: How to buy bad stocks originally appeared on BloggingStocks on Sat, 15 Nov 2008 10:30:00 EST. Please see our terms for use of feeds.