Knobias Clip Report (04-08-2008)
Submitted By Knobias ClipReport
AGEN: Receives Russian Approval; Shares Spike 30%
Tuesday’s session began with another day of indecision as the indexes were down slightly with extreme calmness overtaking many investors waiting on the Fed’s minutes. With the credit crisis on the backburner, others were waiting on earnings reports over the coming days to gauge the direction market may head.
Those waiting on the minutes were a bit disappointed as they were somewhat mixed as some members viewed a contraction in GDP as likely, while others saw a recovery in the second half of the year. They noted the recent inflation data was disappointing and had some concern that the price expectations may loosen but also said that pricing would moderate later in the year and next year.
The others waiting on earnings season might have also been disappointed as Alcoa reported on Monday with a lackluster quarter which missed bottom line expectations. Revenues were $7.38 billion producing adjusted earnings of 44c versus estimates of $7.38 billion and 50c in adjusted earnings. But the Company noted that they felt they actually performed well in the face of challenging economic conditions including a declining dollar and record energy prices. Demand in Asia, and more specifically, China, kept returns from being extremely disappointing.
With Fed minutes leaving many without a direction and the beginning of earnings season doing the same, investors were left wanting.
One area where investors found refuge was oncology based pharmaceuticals. On Tuesday, Antigenics Inc. (AGEN) announced that the Russian Ministry of Public Health has issued a registration certificate for the use of Oncophage(R) (vitespen) in the treatment of kidney cancer patients at intermediate risk for disease recurrence. The company expects to launch Oncophage in Russia in the second half of 2008.
The move by the Russian entity was a first. The approval of a drug in the country which was first denied by the FDA could open a flood gate of denied applicants in the US to press their luck in the former communist nation.
“The registration of Oncophage in Russia represents an important treatment advancement for patients with intermediate-risk kidney cancer,” said Garo H. Armen, PhD, chairman and CEO of Antigenics. “We are very pleased that Oncophage is the first personalized cancer vaccine that will be available in any major country. Additionally we hope to file for the conditional approval of Oncophage in Europe this year.”
“The current standard of care for patients with nonmetastatic renal cell carcinoma consists of surgical removal of the kidney followed by observation,” commented Professor Vsevolod Matveev of N.N. Blokhin’s National Cancer Research Center of RAMS, Moscow. “Following surgery, these patients often request treatment options to help prevent or delay recurrence of their disease. This registration means patients in Russia with earlier-stage disease will now have Oncophage as a treatment option.”
Following the news, shares spiked to a high of $3.90 before falling down below $3 until a CNBC mention renewed interest sending shares to the $3.20 area, up 30% on the day.
Visit 1800blogger to see all of our industry leading blogs.
