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(Medical-NewsWire.com, July 12, 2012 ) New York, NY -- VFC's Stock House, an information and research outlet that brings ideas and opens discussions to a broad spectrum of investors, brings attention to some companies that may be worth keeping an eye on as the merger and acquisition market in the biotech and pharmaceutical sectors heat up.
Trial results, trial initiations, FDA approval filings, peer-reviewed validation and FDA approvals are all factors that play heavily into the trading patterns of biotech and healthcare companies looking to make a mark in the sector. This is especially true for the relatively small cap, developmental companies that are dependant upon catalyst event that could propel to the 'next level,' so to say, which would launch them into the mainstream of the investing community and also potentially throw them on the radar as a possible buyout or partnership target of a larger pharmaceutical company.
Given the recent string of high-profile acquisitions and takeover offers, whether they be hostile or not, many still-developmental companies - and some, like Amarin Corp (AMRN), who are swiftly nearing the commercialization stage - openly declare themselves as 'on the block' to accept offers for an outright purchase.
It's a seller's market right now, meaning if you've got a product to sell that could potentially replace some glaring gaps that have opened up in the big pharma pipeline as the result of a slew of patent expirations, then you're holding the leverage to hold out and wait for the best deal. Take some recent examples as evidence; GlaxoSmith (GSK), for instance, made international headlines with an offer to acquire Human Genome Sciences (HGSI). That bid has since gone hostile when Human Genome demanded a better deal. Illumina Inc. (ILMN) also rejected two offers from Roche Holding AG (RHHBY.PK) -- one for $44.50/share and the other for $51/share -- and Amylin Pharmaceuticals (AMLN) turned away Bristol-Myers Squibb Company (BMY) earlier this year on a $3.5 billion, $22/share offer.
Prolor Biotech (PBTH), with potentially catalysts on the not-so-distant horizon, is one such company that may fit into the 'buyout target' profile. Prolor holds world wide rights to the naturally-occurring Carboxyl Terminal Peptide (CTP), which can be attached to already-existing therapeutic proteins in order to slow the process by which the protein is removed from the human body and thereby creating an extended life span for an already-existing treatment. This process significantly reduces the amount of injections or applications a patient would need to endure during the course of treatment.
The company has yet another catalyst pending with the initiation of Phase III trial in adults later this year. Success in that trial would likely lead to a nice runup as Prolor would then look for approvals - if the company is not bought out beforehand.
Although most larger companies generally wait until approval decisions are known before buying-in, Teva's (TEVA) Dr. Phillip Frost is already heavily invested in PBTH and could throw an offer on the table with a decision still pending, assuming positive clincal results.
Another company that may be in line to receive an offer before the approval process is complete is Lpath Inc. (LPTN). Considering the potential catalysts in play and a prime-time partnership with Pfizer (PFE), Lpath shares may be undervalued right now.
Lpath has become a recognized leader in the field of developing lipid-based therapies through its proprietary ImmuneY2 platform, which contains the ability to generate therapeutic antibodies that bind to and inhibit bioactive lipids that contribute to the spreading and growth of various diseases and inflammatory/auto-immune disorders. The market potential for this technology in treating a plethora of modern day illnesses and diseases, should it advance past the clinical stages, is huge. Lpath is first applying this technology to treat Wet AMD and cancer, both multi-billion dollar markets, and that could just be the beginning.
Sunshine Heart (SSH), for example, saw its share price explode over the past few trading sessions on the potential of its implantable device to treat Class III and ambulatory Class IV heart failure. The company could register its first sales later this year and also has the initiation of a pivotal US trial on the table for later this year as another potential catalyst.
MRI Interventions (MRIC) is another company whose share price has registered some nice recent gains as its MRI-enhancing device, ClearPoint, allows the medical community to conduct less-invasive procedures on the brain. MRIC is also developing its ClearTrace system to augment existing MRI suites to conduct less-invasive procedures of the heart and Siemens AG (SI) is already on board as a partner for its development. Another unique collaboration with Boston Scientific Corporation (BSX) identifies this company as a buyout play, once again.
Cytosorbents, Inc (CTSO) is also one not to ignore in the medical device sector, as this company recently announced the official commercial launch of its blood purification CytoSorb device, destined to treat severe sepsis and other indications where high cytokines are present. The device was approved in Europe on results strong enough that European regulators did not even wait for final data to be compiled before rendering their decision. It also helped that CytoSorb targets a market for which there are currently no effective treatments. Additional trials in the US are in the preparatory stages.
For full report visit: http://vfcsstockhouse.com/blog/article/-buyout-talk-catalysts-and-clinical-results-can-move-these-health-care-stocks
For this week's list of hot stocks to watch visit: http://vfcsstockhouse.com/blog/article/-weekly-stock-watch-week-of-july-9-jpm-aa-goog-ssh-mnkd-mric-sppi-jazz-pbth-teva-mrk-lptn-pfe-gnbt-ctso-tlle-fb-yhoo-imsc
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VFC's Stock House is an information and research outlet that brings new ideas to the table and opens discussions for a broad spectrum of investors, with a strong focus on - but not limited to - biotech stocks, biopharma stocks, growth stocks and the pharmaceutical and healthcare sectors. VFC's Stock House provides individual company profiles, write-ups and reports as well as giving general insights into broader-market news through various 'Stock Watch' lists. At the conclusion of most weeks, VFC's Stock House issues a "Weekly Stock Watch" that examines news items, stocks and stories that made headlines during the previous trading week, but may also make headlines or influence trends during the upcoming week as well. The information contained within the pages of VFC’s Stock House are not intended to be taken as advice, but as a starting point where investors can follow up with their own DD and devise their own entry and exit strategies.
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