Biotech Stocks -- On The Verge Of A Major Upturn?
Thought this would be of interest to investors, giving us something construtive to speak to/about.
Friday July 24, 2:32 pm Eastern Time
Company Press Release
Biotech Stocks -- On The Verge Of A Major Upturn? Or Another False
Start? Find Out At Informed Investors Forums in SF, July 26, and San
Diego, Aug. 1
SAN DIEGO--(BUSINESS WIRE)--July 24, 1998--For investors, biotechnology stocks are either on the verge of a
long-awaited run up or still in very treacherous territory, depending on which industry expert one believes.
Case in point. Jim McCamant, long-time industry guru and editor of the Medical Technology Stock Letter, says ''there's no
question'' biotech stocks have begun an upward move. However, BA Robertson Stephens' senior biotech analyst, Peter
Freudenthal, is pessimistic. He says many biotechs, in particular companies with market capitalizations of $100 million or less,
face ''big trouble'' ahead because of lack of sponsorship on Wall Street.
Freudenthal and McCamant are keynote speakers at upcoming Informed Investors Forums. Freudenthal is one of two keynote
speakers Sunday morning July 26 at the San Francisco Bay Area Biotech Stocks Forum, along with Kurt von Emster, portfolio
manager of Franklin Biotechnology Discovery Fund (NASDAQ:FBDIX - news). McCamant is the headliner at the San Diego
Biotech Stocks Forum Saturday morning Aug. 1.
According to McCamant, biotech stocks began to rally last Fall, but were stalled by fallout from the Asian financial woes that
beset virtually all technology stocks. But better-than-expected earnings from biotech giant Amgen (NASDAQ:AMGN - news)
this past week, if followed by similar reports of strength from other larger biotech stocks, could facilitate a rally, he added.
McCamant believes many small cap biotech companies are ''extremely undervalued'' and, with a bit of good news, could post
significant gains.
''We'll have to see the way the stocks act on good news,'' McCamant said. ''The technology has been progressing all along
the way ... that's not been the problem. It's impossible to predict whether some of the better stocks will rise quickly or slowly,
but I think they will rise. Some unexpected good news could be really helpful.''
McCamant said many biotech techs, despite good science, have been plagued by bad financing deals. Those will work out
over time if products in late-stage trials receive FDA approvals. Companies McCamant likes currently include Amgen, Isis
Pharmaceuticals (NASDAQ:ISIP - news), Shaman Pharmaceuticals (NASDAQ:SHMN - news) and Xoma
(NASDAQ:XOMA - news). But, he warns, investors should await results from late-stage trials and possible FDA
announcements.
Fruedenthal is less optimistic. He recommends investors avoid biotech companies with market capitalizations of less than $100
million and less than two years operating cash in the bank. Those stocks, Freudenthal warns, have little or no Wall Street
sponsorship and will likely fall by the wayside.
''In fact, on a recent trip to New York and Boston, I learned that hedge funds are now shorting biotech stocks selling as low as
$4 a share,'' Fruedenthal said. ''These funds believe these stocks, even if they have good science, have no sponsorship and will
end up drifting down to the $1 a share range. These companies will find it impossible to get financing. They're orphans.''
On the other hand, Freudenthal feels there are opportunities in a number of the larger biotech companies with products in
late-stage trials with positive Phase III data expected in upcoming quarters. ''Companies like Genentech (NYSE:GNE - news),
Centocor (NASDAQ:CNTO, MedImmune (NASDAQ:MEDI - news), Gilead (NASDAQ:GILD - news), Alkermes
(NASDAQ:ALKS - news) ... these are product stories that can rise,'' Freudenthal said.
Like McCamant, Freudenthal believes biotech stocks will need more than isolated good news for the sector to gain momentum.
Unexpected good news could facilitate a rally. And even the small cap biotechs can move under the right conditions, according
to Freudenthal.
''Biotechs, like the internet stocks, are one of the few open-ended dream sectors,'' Freudenthal said. ''If the internet stocks
lose their luster, those investors could switch to biotechs because, despite the very high risks, there are those upside dreams.''
The July 26 Forum in San Francisco runs from 8:30 a.m.-1 p.m.. In addition to Freudenthal and von Emster, executives from
the following companies will give analyst-style presentations: Protein Design Labs (NASDAQ:PDLI - news), Sangstat Medical
(NASDAQ:SANG - news), Megabios (NASDAQ:MBIO - news), Sugen (NASDAQ:SUGN - news), Sequus
(NASDAQ:SEQU - news), SunPharm (NASDAQ:SUNP - news) and Shaman Pharmaceuticals.The cost is $25 prepaid, $40
at the door. Audio tapes (five-cassette set) are available for $45 plus $3.95 shipping/handling. Call 1-800-992-4683 to
register for either event, order tapes or get more information.
On Saturday, Aug. 1 at the Mission Valley Radisson in San Diego, investors will be treated to a full day of biotech/medical
technology presentations, commentary and insight.The cost for the full day is $40 prepaid, or $55 at the door (space available).
The cost for the morning or afternoon sessions alone is $25 prepaid, or $40 at the door (space available). Audio tapes are
available. For the complete set of all companies and presenters (10 cassettes), the cost is $83.50 plus $5.95 shipping/handling.
For either the morning or afternoon session (five cassettes), the cost is $45 plus $3.95 shipping/handling.
The morning program (8:30 a.m. to 12:15 p.m.), featuring McCamant as the keynote speaker, is devoted to biotechnology.
Companies presenting are: Alliance Pharmaceutical (NASDAQ:ALLP - news), La Jolla Pharmaceutical (NASDAQ:LJPC -
news), Cytel Corp. (NASDAQ:CYTL - news), Isis Pharmaceuticals (NASDAQ:ISIP - news) Avigen (NASDAQ:AVGN -
news) and Genentech.
The afternoon session begins at 1:15 with a keynote address by Dr. Alex Arrow, Vice President/Research at Wedbush
Morgan Securities. Michael Yellen, portfolio manager of the AIM Global Health Care Funds (NASDAQ:GGHCX - news), is
the concluding keynote speaker at 5 p.m. Companies presenting are: Inhale Therapeutics (NASDAQ:INHL - news), Cardima
(NASDAQ:CRDM - news), Medical Science Systems (NASDAQ:MSSI - news), MiniMed, Inc. (NASDAQ:MNMD -
news), Zevex International (AMEX:ZVX - news), VISX, Inc. (NASDAQ:VISX - news), SteriGenics International
(NASDAQ:STER - news), and BioSource International (NASDAQ:BIOI - news).
Informed Investors is well established as an important source of current information for biotech investors. At its recent Beltway
Biotech Stocks Forum June 6 in Bethesda, MD, companies that presented included Integra LifeSciences (NASDAQ:IART -
news), Boston Life Sciences (NASDAQ:BLSI - news), EntreMed (NASDAQ:ENMD - news), Gene Logic
(NASDAQ:GLGC - news), OSI Pharmaceuticals (NASDAQ:OSIP - news), CytRx (NASDAQ:CYTR - news) and
SunPharm. Also, attendees heard from biotech experts Dr. Alex Arrow and Kris Jenner, Ph.D., M.D., biopharma analyst at T.
Rowe Price (NASDAQ:TROW - news). Audio tapes are available of that Forum for $45 plus $3.95 S/H.
Since 1993, Informed Investors has featured scores of quality companies and industry experts at its Forums. Informed
Investors represents individual investors who collectively hold an estimated $2 billion in investable assets.
Contact:
Informed Investors
Sean Finnigan, Steve Chanecka or
Tim Quast, 916/448-8222 or 800/992-4683 |
