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Pharmaxis (NASDAQ:PXSL) – Phase II Trial of Bronchitol Successful
August 12, 2008 — stockmd
August 12, 2008
On 8/11/2008, Pharmaxis (NASDAQ:PXSL) declared success in its Phase II trial of DPM-CF-202, a unique agent that has shown efficacy in the treatment of patients with cystic fibrosis. Cystic Fibrosis is a genetic disorder that commonly leads to decrease in lung funtion. At the end of two weeks of treatment with DPM-CF-202 (Bronchitol), cystic fibrosis patient displayed an increase in lung function. In the late 90’s It was estimated that the cost of patients with cystic fibrosis was $314 million per year in 1996 dollars. Twelve years later there has been no significant breakthrough and the cost of Cystic Fibrosis patients is most likely close to half a billion dollars a year. If Bronchitol passes through it’s phase three clinical trials and gets placed on Pharmaceutical Markets Worldwide it may lead to hundreds of millions of dollars in revenue for Pharmaxis. An increase in revenue may lead to an increase in stock price for Pharmaxis.
Biotech Stocks Follow the Cool Rules.
August 12, 2008 — stockmd
The
Nasdaq Biotech index continues to increase although the market in general appears to be catching up to it. Note that since July 15 the Nasdaq Composite, Dow Jones and the S & P 500 have corrected their downward trend and are now arching upward. For the stock market this is good news as gas prices have been falling as of late and shipping costs become less prohibitive to business. Nonetheless, Biotech still appears to be leading the way as far as stock price is concerned in the face of rising losses. However, these losses are primarily secondary to advancement of its pipeline which is critical for growth in any corporation that produces a product. And often the pipelines of these Biotech Companies are exceptional in that they have products that address unique disorders. Now more the an ever: Biotech is Cool. For example Chelsea Therapeutics (Nasdaq: CHTP) and GTX, Inc (Nasdaq: GTXI) both have unique products and both have seen an uptrend in its stock price over the last 3 weeks. As of late, Chelsea has started to eat into its gain in stock price, most likely because of increasing losses in the second quarter of this year. Chelsea reported a net loss of 7.3 million in the second quarter of 2008 as compared to its second quarter loss in 2007, which was only 3.8 million. However, it still acquires interest because of its innovative pipeline. CHTP has increased from 4.46 on 07/02/2008 to 5.46 on 8/11/2008. Chelsea Therapeutics received the go ahead from the UK’s Medicines and Healthcare products Regulatory Agency, the MHRA for the beginning of a phase II trial for Droxidopa. Droxidopa has been developed to treat Fibromyalgia. Fibromyalgia is unique because as I diagnosis it is somewhat amorphous. Some Medical Doctors actually do not believe the disease exists. However, designing a drug that decreases is symptoms with or with out carbidopa is a unique niche that is without doubt under exploited. Moreover, Toremifene, one of its GTx’s key products in development, met its Phase III goals back in 2/2008. As of August 5th 2008 GTX announced that its phase III trial of Toremifene is on course. If all goes well, Toremifene, may be on the market as early as 2010. GTX, Inc posted a $26 million loss as compared to a net loss of $17.3 million for the first 6 months of 2007 but its stock price has risen steadily from 14.35 on 06/30/2008 to 18.02 as of 8/11/2008. Both GTX, Inc and Chelsea Therapeutics have the Biotech “Cool Factor” which allows them to enjoy a gradual increase, while displaying rising losses. The shroud of Health protects and nourishes Biotech during recession times while other industries continue to crumble.
