Small-Cap Stock on Watch: BioSante Pharmaceuticals Inc. (BPAX)
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    Stock Alert for BioSante Pharmaceuticals Inc. (BPAX)

    BioSante Pharmaceuticals Inc. (BPAX) is a specialty pharmaceutical company focused on developing products for female sexual health and oncology. Its products include LibiGel® (transdermal testosterone gel) for the treatment of female sexual dysfunction (FSD), specifically hypoactive sexual desire disorder (HSDD), which is in Phase III clinical development. BPAX also is developing a portfolio of cancer vaccines, with 17 Phase I and Phase II clinical trials currently on-going. Four of these vaccines have been granted Orphan Drug designation by the U.S. Food and Drug Administration (FDA). The Company’s other products include Bio-T-Gel™, a testosterone gel for male hypogonadism, for which a New Drug Application (NDA) was just approved by the FDA, which is licensed to Teva Pharmaceuticals, and the Pill-Plus™, an oral contraceptive in Phase II clinical development by Pantarhei Bioscience B.V. The Company’s first FDA-approved product is Elestrin™ (estradiol gel) indicated for the treatment of hot flashes associated with menopause, marketed in the U.S. by Jazz Pharmaceuticals, BPAX’s licensee.

    Share Statistics (15-Feb-11)   FY

    2009

    FY

    2010

    %

    Chg

    Q3

    2010

    Q3

    2011

    %

    Chg

    Symbol BPAX Revenue, $Mn 1.26 2.47 96.0% 0.05 0.18 260.0%
    Current price $0.97 Gross marg. 100.0% 100.0% 0.0% 100.0% 100.0% 0.0%
    52wk Range: $0.38-$4.02 Oper. margin -1867.1% -6966.7%
    Avg Vol (3m): 6,811,410 Net margin -3772.2% -1870.4% -50.4% -23180.0% -7072.2% -69.5%
    Market Cap. 106.60M              
    Shares Outstanding 110.01M EPS, $ -1.13 -0.70 -38.1% -0.16 -0.12 -25.0%

    Source: Reuters.com, SEC Filings.

    Investment Highlights

    Shares of  the Lincolnshire, Ill.-based specialty pharmaceutical company got a 61% boost Wednesday following news that the Food and Drug Administration (FDA) had cleared the sale of Bio-T-Gel, the Company’s testosterone replacement product for men. The product is aimed at treating male hypogonadism, which is generally characterized by impotence, a lack of sex drive, muscle weakness and osteoporosis.

    BPAX shares have gained 18.9% in the last five days and 85.0% in the last month.  Year-to-date, the stock is down 51.5%.

    Bio-T-Gel was initially developed by BPAX and then licensed to Teva Pharmaceuticals for late stage clinical development. The latter is responsible for all Bio-T-Gel regulatory and marketing activities. BPAX will get royalties and may receive certain milestone payments upon commercialization of Bio-T-Gel, according to the release.

    “We are pleased that Bio-T-Gel will provide another treatment option to men suffering from low testosterone levels,” commented BPAX president and CEO Stephen M. Simes.  “We are confident that Teva has the commercialization and marketing expertise to implement a successful launch, and we look forward to Bio-T-Gel reaching the market.”

    The U.S. market for male testosterone products is currently valued at around $1.6 billion.

    BPAX shares suffered a blow in December after the Company reported that its testosterone product for women, LibiGel, failed in a late-stage study.

    Speaking at an investor conference in New York, Simes stated that the company is still trying to determine “the best path forward for LibiGel.”

    Shares of BPAX gained $0.21, or 27.28%, to close Wednesday’s session at $0.97.  Over 52 million shares traded hands during the session, against the 10-day average of 17.10 million.

    Source:

    http://www.biosantepharma.com/News-Releases.php

    Financial Summary

    BPAX posted a net loss of $12.7 million, or $(0.12) per share, for the third quarter of 2011, compared to a net loss of $11.6 million or $(0.16) per share for the third quarter 2010. The Company mainly attributed the increase in net loss to increased LibiGel® (testosterone gel) clinical development expenses during the third quarter of 2011.

    As of September 30, 2011, BPAX’s cash and cash equivalents were about $69.6 million, compared to $38.2 million at December 31, 2010.

    Source:

    http://www.biosantepharma.com/News-Releases.php?ID=110911

    Financial Strength (15-Feb-2012)

    Company

    Industry

    Sector

    S&P 500

    Quick Ratio (MRQ) 3.11 1.43 0.59
    Current Ratio (MRQ) 6.13 3.94 1.77 0.93
    LT Debt to Equity (MRQ) 43.59 23.28 25.08 171.69
    Total Debt to Equity (MRQ) 46.38 26.57 34.32 229.31
    Interest Coverage (TTM) -27.28 52.27 2.48 27.48

    Source: Reuters.com, SEC Filings.

    Technical Analysis

    Source: http://stockcharts.com

    BPAX is presently near its upper Bollinger Band. This suggests that it is at a high level relative to recent action.

    The MACD for BPAX currently indicates a strong bullish signal for two reasons. First, the MACD is above the signal line, a 9-day moving average. Second, the MACD is above 0, which implies that the underlying moving averages are trending higher.

    Comparative Analysis

    Company Name Ticker Price per Mrkt. Cap. P/E P/S
    Feb15-2011 symbol Share, $ $ Mn 2011 2012 2011 2012
    Pfizer Inc. PFE 21.13 162.43B 9.31 9.03 2.62 2.62
    Merck & Co. Inc. MRK 38.01 115.82B 9.98 10.19 2.45 2.51
    Auxilium Pharmaceuticals Inc. AUXL 19.75 948.43M n/a n/a 3.58 3.14
    Watson Pharmaceuticals Inc. WPI 59.70 7.59B 10.57 10.00 1.40 1.43
    Biotechnology Median       17.39 n/a 9.12 n/a
    BioSante Pharmaceuticals Inc. BPAX 0.97 106.85M n/a n/a 288.78 125.71

    Source: Thomson Financial

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