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This Week's Watchlist 12/19/11

publication date: Dec 18, 2011
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author/source: Mark Messier
After an action packed few months of biotech trading, we have hit a period of 'light' activity.  We have a lot of catalysts that are setting themselves up for January - March 2012, but there are no more expected catalysts through the remainder of 2011 and for the first few weeks of 2012.

The timing works out well, as the markets tend to slow around the holiday anyways, with volume decreasing and many companies taking time off.  Despite this we still have a few stocks to keep an eye on.

CBRX - CBRX is next in line for a catalyst, which is its 1/20/12 FDA Panel.  IT started picking up momentum last week, breaking the $2.50 resistance level.  This stock has ran in the past hitting its 52 week high in early 2011 of $4.31.  FDA Panels may have created more interest, as AFFY and ALXA were both able to get positive recommendations.

NGSX - NGSX got an acceleration of its catalyst last week, as it was announced that there would be an FDA panel for its drug on Feb 9, 2012.  It has a PDUFA date of 3/7/12.  There was heavy selling last week, as if a large holder was liquidating their position before year end (tax loss selling).  

ALXA - While most of us our out of ALXA (hopefully), this should be an interesting stock to watch on Monday morning.  ALXA slipped out an 8pm EST press release on Friday night, announcing that they are exploring 'strategic options' and issuing layoff notices to their 60 employees.  ALXA has about $.39 cash per share, and it seems they are virtually giving up, as even if the FDA approves their drugs, the proposed REMS is so strict that sales will be extremely limited.

AMRN - Amarin has been in a slow bleed mode for months, performing miserably since mid 2011.  Concerns over NCE status and patents have been weighing heavily on the stock.  Now it seems that tax loss selling has destroyed the share price even more, trading at a low of $6, even printing $5.99 last week.  AMRN does have a PDUFA date of 7/26/12.  I will be watching AMRN, and I plan to take a position in early 2012 in my personal IRA account, as I think its worth a shot for a long term hold soon. Just an FYI...