Also in this playlist...
This transcript is automatically generated
They can -- investors are pouring big money into -- particular sector we need to focus on right now.
It's the Biotech space these are pharmaceutical.
Organizations that are coming up with brave new ideas.
But it's the smaller Biotech were pursuing an initial public offerings at the fastest pace in nearly a decade.
So how -- get into this booming trend and of course the big guys Steve I would think are also trying.
To swallow up some of the little -- wants these silver is that some big capital IQ Biotech analyst she's been looking at all of these names for years of real expert -- -- -- Let's let's tackle the two questions -- day.
Was -- a lot of IPOs why now.
What I think there's still reason behind it I think one of -- -- one of them as a byproduct of really just overall industry demand and investor appetite for risk as the Biotech industry continues.
It's two year uptrend honestly think that they're more companies that are interest in pursuing IPOs.
And really over the last couple of years there have been some immediate trickle of companies waiting -- VI PO waters.
But a lot of these companies have seen their offering prices have to come down from where they wanted to raise money.
Com and then once a company did get to go public.
A majority of those companies saw their prices in the first year after the IPO actually declined.
So I think there's been a hesitancy of small cap by text to go back into the waters.
-- really driven by the overall demand and investor appetite for risky in this -- current Biotech market.
We think a lot more companies are seeking the IPO -- at this time -- some of these smaller names only have one or maybe two names of drugs in the pipeline to set up a little more dangerous recommend if somebody's interested in getting it on the early stages of the smaller Biotech IPO.
Thought well I think to be Biotech industry is inherently risky I think it's always been that way and as long as there's risks in terms of drugs and making their way through the clinical pipeline.
I think it's going to be -- our remaining and risky proposition getting into -- text.
And like he said -- a lot of these companies do have one maybe two programs in the pipeline which just increases that risk profile.
But I do think that there's a lot going on in the industry.
Particularly from the FDA looking to move promising programs along.
That are helping to -- that your profile a little bit I wanna get to some of these names that you.
Absolutely love right now and again the copy item -- buyer beware is that there is risk but Celestine -- and it's been around for quite some time.
You've got -- 149 dollar price -- it on it.
Okay so what Celgene we've had a strong while quite awhile and that's a company that has really focused on only the growth has been focused on -- cancer drugs and they called revel in that.
-- and I think that that drug has been about 70% of company revenues in recent years.
Ominously for that reason it's -- -- some of its peers in terms of the multiple being ascribed to it.
But really -- a positive on Celgene diversifying its growth story.
They just got approval of -- new drug for multiple myeloma which is a form of blood cancer earlier this year.
There expect we're expecting them to get approval on a new use for -- approved drug -- seen in pancreatic cancer later this year.
And also we're looking for initial approval -- new drug in its in its inflammatory.
Unit in 2014 and so what we think there's a lot to like with Celgene.
And we think that -- revenue concentration story is becoming more diversified.
All right so it's got a seventy what 78% run up just over the past year but look at the next pick.
This one has a 123%.
Rise Europe reared its Gilead Sciences.
Where is the opportunity beyond a hundred plus percent to return here over the past year.
Well you know what they're not alone the Biotech industry has really been that strong over the past eighteen months or even two years.
But Gilead has been riding momentum of its hepatitis C program.
Which -- made -- a major acquisition in 2011 buying Pharmasset.
So I think that the opportunity and hepatitis C is immense.
There are many -- patients waiting for new therapies to reach the market.
The current hepatitis C market.
-- -- in 2011.
Program -- that treat regiment.
Has an injectable component called interferon which can lead to very nasty side effects so -- I was actually pursuing a hepatitis C regiment.
Which does not required to fear on to be included.
So there's been a major backlog of patients that have hepatitis C.
That are in need of treatment.
But are waiting for this regiment had reached the market up and we think that's to be for the biggest market opportunities though that can reach the market in 20040.
Lesser known name it's your third pick and give me twenty seconds on -- PS pharmaceuticals and and what I wanna point out about this -- for our viewers just so that they know was that 13% of the float.
Is being shorted by the -- surrounding the stock but that doesn't necessarily mean much it's just that we've seen a massive -- up quarter to date up 93%.
For just the past three months.
Right an MPS is definitely more speculative play compared to the first two companies.
And PS is focused on -- rare disease drugs -- more of an orphan drug company.
I think just got approval earlier -- to the end of our 2012 for their first drug debt text.
Which is a drug for a rare condition called short bowel syndrome.
Armed and -- -- watching the drug now we expect to be true the company to get a second approval in the US in 2014.
And also we see opportunities for them to expand both these drugs internationally after completing a deal early this year to regain global writes I told you guys Steve knew he was talking about living and breathing -- Steve it's great to see you thank you so much for your ideas and we'll put them on the FaceBook dot com slash after the bell -- thanks for having so much has just.
Filter by section