Carefull dude, as a consultant in clinical systems specializing in drugs (no surprise, ex 60's child) I've done very well in biotechs. It also requires doing a lot of homework & rampup to spot when a company has moved into a viable risk/reward position.
VICL (would not buy right now due to the runnup, wait for a dip after Jan 1) has a broad pipeline with a unique technology platform (naked DNA) that is well patent protected, validated by multiple significant licensing deals with major pharmas for things like malaria, flue and HIV vaccines, coupled with several therapeutic vaccines for non-cyctotoxic cancer therapy, which means they'll get all the proceeds, coupled with a low burn ratre and solid mgmt.
It's people who don't know what they're doing who jump on Entremed's based on a WSJ article, when several other biotechs had anti-angiogenesis programs much further along (see CTIC, I know ther are others)
Anyway, PTIX is also surprisingly languishing despite continued good product development. I want to talk with the CFO before making a strong buy rec at this point, but it's s good company, innovative products with good customers (CSCO for instance) ya may want to do some DD.
But you're right, were looking at a sector rotation. Partially the market is catching up to the fact that biotechs have made huge progress clinically, and a strongly increasing # of FDA approvals coupled with shortened drug development times due to greatly improved candidate screening technologies & the knowledge gained by genomic research means the water's a lot safer now.
Partially we're seen biotechs moving into more appropriate valuations since they languished incredibly for several years. Partially we're seeing a herd mentality of novice investors & mo-players that will depart the sector just as easily.
Hadn't planned on lecturing when I started, but oh well, there's no charge 4 the consult. ;) Scott
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