Stock Alert for Keryx Biopharmaceuticals Inc. (KERX)
Keryx Biopharmaceuticals Inc. (NASDAQ: KERX)
Keryx Biopharmaceuticals Inc. (KERX) is a biopharmaceutical company focused on the acquisition, development and commercialization of pharmaceutical products for the treatment of life-threatening diseases, including cancer and renal disease. The Company is developing KRX-0401 (perifosine), a novel, potentially first-in-class, oral anti-cancer agent that inhibits Akt activation in the phosphoinositide 3-kinase (PI3K) pathway, and also affects a number of other key signal transduction pathways, including the JNK pathway, all of which are pathways associated with programmed cell death, cell growth, cell differentiation and cell survival. KRX-0401 has demonstrated both safety and clinical efficacy in several tumor types, both as a single agent and in combination with novel therapies. KRX-0401 is currently in phase 3 clinical development for both refractory advanced colorectal cancer and multiple myeloma, and in phase 1 and phase 2 clinical development for several other tumor types. Each of the KRX-0401 phase 3 programs are being conducted under Special Protocol Assessment (SPA) agreements with the FDA. The Company is also developing Zerenex(TM) (ferric citrate), an oral, iron-based compound that has the capacity to bind to phosphate and form non-absorbable complexes. The phase 3 clinical program of Zerenex in the treatment for hyperphosphatemia (elevated phosphate levels) in patients with end-stage renal disease is being conducted pursuant to an SPA agreement with the FDA.
KERX was founded in 1998 and is based in New York, New York.
| Share Statistics (14-July-10) | FY
2008 |
FY
2009 |
%
Chg |
Q4
2008 |
Q4
2009 |
%
Chg |
||
| Symbol | KERX | Revenue, $Mn | 1.28 | 25.19 | 1.8K% | 0.33 | 0.00 | -100.0% |
| Current price | $4.11 | Gross marg. | 100.0% | 85.7% | 1.6K% | 100% | – | -100.0% |
| 52wk Range: | 0.87-6.67 | Oper. margin | -4.2K% | 38.9% | -118.0% | -1.2K% | – | 32.4% |
| Avg Vol (3m): | 3,543,250 | Net margin | -4.1K% | 41.7% | -120.0% | -1.3K% | – | 23.7% |
| Market Cap. | 240.78M | |||||||
| Shares Outstanding | 58.59M | EPS, $ | -0.830 | -0.209 | -125.0% | -0.082 | -0.083 | 1.22% |
Source: Reuters.com, SEC Filings.
Financial Summary
KERX reported a net loss of $4.0 million, or $0.07 per share, in the first quarter of 2010, compared with a net income of $0.5 million, or $0.01 per share, in the comparable quarter of 2009. The change in net (loss) income was primarily attributable to a $3.3 million decrease in license revenue primarily resulting from a $3.0 million milestone payment received from its Japanese partners, Japan Tobacco Inc. and Torii Pharmaceutical Co. Ltd., in the first quarter of 2009, as well as a $1.1 million increase in research and development expenses related to KRX-0401 (perifosine) and Zerenex. The net loss for the first quarter ended March 31, 2010, included $0.6 million of non-cash compensation expense related to equity incentive grants.
At March 31, 2010, the Company had cash, cash equivalents, interest receivable and investment securities of $32.1 million, as compared to $35.9 million at December 31, 2009. Subsequent to March 31, 2010, the Company has received approximately $2.7 million of cash proceeds from the exercise of options and warrants.
Source: Keryx Biopharmaceuticals Inc.
| Financial Strength (14-July-2010) | Company | Industry | Sector | S&P 500 |
| Quick Ratio (MRQ) | 5.89 | 5.18 | 2.67 | 0.79 |
| Current Ratio (MRQ) | 5.89 | 5.60 | 3.19 | 0.95 |
| LT Debt to Equity (MRQ) | 0.00 | 20.04 | 23.67 | 135.66 |
| Total Debt to Equity (MRQ) | 0.00 | 25.73 | 30.39 | 203.44 |
| Interest Coverage (TTM) | -30.66 | -5.24 | 2.01 | 41.38 |
Source: Reuters.com, SEC Filings.
Analyst Consensus
This is the consensus forecast among four polled investment analysts. Against the Keryx Biopharmaceuticals Inc company.
| Analyst Detail | Buy | Outperform | Hold | Underperform | Sell | No Opinion |
| Latest | 3 | 1 | 0 | 0 | 0 | 0 |
| 4 weeks ago | 3 | 1 | 0 | 0 | 0 | 0 |
| 2 months ago | 3 | 1 | 0 | 0 | 0 | 0 |
| 3 months ago | 3 | 1 | 0 | 0 | 0 | 0 |
| Last year | 2 | 0 | 0 | 0 | 1 | 0 |
The four analysts offering 12-month price targets for KERX have a median target of 8.00, with a high estimate of 8.00 and a low estimate of 7.00. The median estimate represents a 124.72% increase from the last price of 3.56.
Source: markets.ft.com
Consensus Estimates Analysis
Source: http://www.reuters.com/finance/stocks/financialHighlights?symbol=KERX.W
Investment Highlights
KERX recently announced that KRX-0401 (perifosine) has received orphan drug status from U.S. health regulators for the treatment of neuroblastoma, a type of childhood cancer for which no FDA-approved therapies currently exist. The designation, which is given to drugs used to treat diseases for which there are few or no treatments, provides the drug developer seven years of U.S. marketing exclusivity, upon approval.
“We are currently exploring next steps for the development of perifosine in this indication which we hope, ultimately, could provide a new treatment option for children and infants suffering with neuroblastoma,” stated KERX CEO Ron Bentsur.
Neuroblastoma accounts for about 7% of all cancer deaths in children, according to the American Cancer Society. It is reported that there are about 650 new cases of neuroblastoma each year in the United States, and, while in rare cases neuroblastoma is detected by ultrasound in utero, the average age at the time of diagnosis is approximately one to two years, with 90% of cases diagnosed before age five. In about two of three cases, the disease has already spread (metastasized) to other parts of the body at the time of diagnosis and as a result, treatment options can be limited.
About KRX-0401 (perifosine)
KRX-0401 (perifosine) is a novel, potentially first-in-class, oral anti-cancer agent that inhibits Akt activation in the phosphoinositide 3-kinase (PI3K) pathway, and also affects a number of other key signal transduction pathways, including the JNK pathway, all of which are pathways associated with programmed cell death, cell growth, cell differentiation and cell survival. The effects of KRX-0401 on Akt are of particular interest because of the importance of this pathway in the development of most cancers, with evidence that it is often activated in tumors that are resistant to other forms of anticancer therapy, and the difficulty encountered thus far in the discovery of drugs that will inhibit this pathway without causing excessive toxicity. High levels of activated Akt (pAkt) are seen frequently in many types of cancer and have been correlated with poor prognosis.
KRX-0401 is currently also in a late-stage trial as a treatment for colon cancer and a type of cancer called multiple myeloma. It previously received FDA orphan drug status for multiple myeloma. The drug is in-licensed by KERX from Aeterna Zentaris Inc. (NASDAQ: AEZS) in the United States, Canada and Mexico.
Source: Keryx Biopharmaceuticals Inc.
Technical Analysis
Source: http://stockcharts.com
Tuesday, KERX closed above its 13-day moving average. This is generally considered to be an indication of a bullish trend.
KERX has been relatively stable recently. This is evidenced by the width of its Bollinger Bands which are tighter than normal. Additionally, KERX is trading within its Bollinger Bands. This is a normal condition and suggests that the stock is neither overbought nor oversold.
KERX’s MACD is currently indicating a weak bullish signal. Although the MACD is trending above the signal line, the indicator is still zero, which suggests that the underlying moving averages are bearish.
Comparative Analysis
| Company Name | Ticker | Price per | Mrkt. Cap. | P/E | P/S | ||
| July-14-2010 | symbol | Share, $ | $ Mn | 2010 | 2011 | 2010 | 2011 |
| Genzyme Corp. | GENZ | 53.58 | 14,300 | 21.35 | 14.44 | 2.87 | 2.56 |
| Amgen Inc. | AMGN | 52.62 | 50,410 | 10.28 | 9.67 | 3.34 | 3.21 |
| Biogen Idec Inc | BIIB | 52.97 | 14,140 | 11.59 | 10.90 | 3.13 | 3.05 |
| Pfizer Inc. | PFE | 14.84 | 119,700 | 6.87 | 6.60 | 1.78 | 1.82 |
| Ariad Pharmaceuticals Inc. | ARIA | 2.83 | 313.23 | n/a | n/a | 16.20 | 12.72 |
| Median | 10.94 | 10.29 | 3.13 | 3.05 | |||
| Keryx Biopharmaceuticals | KERX | 4.11 | 240.78 | n/a | n/a | n/a | n/a |
Source: Thomson Financial
Insider Trading Activity
| NET SHARES PURCHASE ACTIVITY
Inside Purchases – Last 6 Months |
||
| Shares | Transaction | |
| Purchases | n/a | 0 |
| Sales | 1,170,830 | 5 |
| Net Shares Purchased (Sold) | (1,170,830) | 5 |
| Total Insider Shares Held | 3.63M | n/a |
| % Net Shares Purchased (Sold) | 24.4% | n/a |
| Net Institutional Purchases — Prior Qtr to Latest Qtr | |
| Shares | |
| Net Shares Purchased (Sold) | (5,006,200) |
| % Change in Institutional Shares Held | (84.98%) |
Source: Yahoo Finance
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