“We are excited by the new resources that our partnership is going to bring to the development of TH-302 and the expertise in clinical development and commercialization that Merck will contribute to this program,” Barry Selick, president and CEO of Threshold, commented in the release.  “This collaboration provides Threshold a strong and committed partner with a shared vision for TH-302.”

Threshold, based out of Red Wood City, CA, will have primary responsibility for development of TH-302 in the soft tissue sarcoma indication in the United States. It and Merck will jointly develop TH-302 in all other cancer indications being pursued, with Merck KGaA paying 70% of worldwide development costs for the drug.

Merck KGaA will commercialize TH-302 in the United States, with Threshold receiving a tiered, double-digit royalty on sales.  Threshold, however, retains the option to co-promote and co-commercialize the drug, allowing the company to participate in up to 50% of the profits in the United States based on certain revenue tiers.

Outside of the U.S., Merck KGaA will be solely responsible for the commercialization of the drug, with Threshold receiving a tiered, double-digit royalty on sales in these territories.

In total, Threshold could receive up to $525 million in milestone payments, comprised of $280 million in regulatory and development milestones and $245 million in sales-based milestones.

TH-302 is a hypoxia-targeted drug that is thought to be activated under tumor hypoxic conditions, a hallmark for many cancer indications.To date, the drug has been investigated in over 550 patients in Phase I/II clinical trials in a broad spectrum of tumor types, both as a monotherapy and in combination with chemotherapy treatments and other targeted cancer drugs.

Shares of THLD added $0.39, or 13.04%, to close Monday’s trade at $3.38.  Over 19.72 million shares exchanged hands during the session, topping the 10-day average of 1.81 million.

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TH-302 is a hypoxia-targeted drug that is thought to be activated under tumor hypoxic conditions, a hallmark for many cancer indications. The drug is currently in a global Phase III clinical trial in patients with soft tissue sarcoma, a randomized Phase II trial in patients with advanced pancreatic cancer from which top-line results are expected in this month, as well as additional clinical studies in other solid tumors and hematological malignancies.

Under the deal, Darmstadt, Germany-based Merck KGaA will pay Threshold $25 million immediately. In addition, Threshold could receive up to $35 million in development milestones this year and $20 million with positive results from its randomized Phase II trial in pancreatic cancer.

Threshold could receive up to $525 million in total milestone payments, comprised of $280 million in regulatory and development milestones and $245 million in sales-based milestones.

Threshold will have primary responsibility for development of TH-302 in the soft tissue sarcoma indication in the United States. The company and Merck will jointly develop TH-302 in all other cancer indications being pursued, with Merck paying 70% of worldwide development costs for the drug.

The deal provides for Merck KGaA to commercialize TH-302 in the United States, with Threshold receiving a tiered, double-digit royalty on sales.  Threshold, however, retains the option to co-promote and co-commercialize the drug, allowing the company to participate in up to 50% of the profits in the United States based on certain revenue tiers.

Merck KGaA will be solely responsible for the commercialization of TH-302 outside of the U.S., with Threshold receiving a tiered, double-digit royalty on sales in these territories.

“We are excited by the new resources that our partnership is going to bring to the development of TH-302 and the expertise in clinical development and commercialization that Merck will contribute to this program,” Barry Selick, president and CEO of Threshold, commented in the release.  “This collaboration provides Threshold a strong and committed partner with a shared vision for TH-302.”

Shares of THLD added $1.70, or 131.8%, to close Friday’s trade at $2.99.  Shares have gained 119.9% in the last five days; 116.7% in the last month; and 69.9% year-to-date.

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Shares of the clinical-stage biotechnology company have gained 95.7% in the last five days and 93.7% in the last month.  Year-to-date, the stock is down 69.5%.

Tengion has pioneered the Organ Regeneration Platform that enables the company to create proprietary product candidates that are intended to harness the intrinsic regenerative pathways of the body to produce a range of native-like organs and tissues.

Its product candidates seek to eliminate the need to utilize other tissues of the body for a purpose to which they are poorly suited, procure donor organs or administer anti-rejection medications. An initial clinical trial is ongoing for the company’s lead product candidate, the Neo-Urinary Conduit, an autologous implant that is intended to catalyze regeneration of native-like bladder tissue for bladder cancer patients requiring a urinary diversion following bladder removal.

Tengion’s lead preclinical candidate is the Neo-Kidney Augment, which is designed to delay or prevent the need for dialysis or transplantation in patients at risk for kidney failure. Tengion has also applied its technology in two Phase II clinical trials for Tengion’s Neo-Bladder Augment for the treatment of neurogenic bladder.

The company maintains worldwide rights to its product candidates.

Last week, the company announced it has relocated its East Norriton, Pennsylvania corporate headquarters to its current facility in Winston-Salem, North Carolina. The move is part of the company’s previously announced restructuring, which was designed to fund its lead development programs through key milestones in 2012 while reducing anticipated cash utilization.

“This relocation allows us to focus our resources more efficiently on advancing our Neo-Urinary Conduit and Neo-Kidney Augment programs, said John L. Miclot , president and CEO of Tengion.  “The presence of a well-educated, high-quality workforce was also a factor in the decision to move our headquarters to Winston-Salem.”

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Based in San Diego, CA, Cardium is focused on the acquisition and strategic development of new and innovative bio-medical product opportunities and businesses with the potential to address significant unmet medical needs that have definable pathways to commercialization, partnering and other economic monetizations. The company’s current medical opportunities portfolio, which is focused on health sciences and regenerative medicine, includes the tissue repair company, Cardium Biologics, and its in-house MedPodium Health Sciences healthy lifestyle product platform.

The U.S. Food and Drug Administration (FDA) has recently granted the Company a 510(k) clearance to market and sell its Excellagen professional-use, sterile, syringe-based wound care product for the management of diabetic foot ulcers, pressure ulcers and other dermal wounds.

Under its agreement with BL&H Co. Ltd., an established pharmaceutical company based in Korea, Cardium will manufacture and supply Excellagen to BL&H at an up-front transfer price which will be 40% of the sales price based on reimbursement pricing to be established for the South Korean market. BL&H will be responsible for all costs related to regulatory filings, as well as sales, marketing and distribution activities.

With the Korea Food and Drug Administration registration process being adaptive to products that have received U.S. FDA clearance, registration and reimbursement pricing process can typically be completed within about a year from application.

As part of the regulatory process in Korea, BL&H intends to provide the health authorities with the findings of Cardium’s Matrix clinical study, which showed that formulated collagen can significantly accelerate reductions in wound radius immediately following application compared to standard of care therapy in diabetic foot ulcers, and can support platelet activation and release of the wound healing protein, Platelet-Derived Growth Factor (PDGF)

Christopher J. Reinhard, chairman and CEO of Cardium Therapeutics, commented in the release: “With our successful regulatory clearance of Excellagen by the FDA, and production of commercial supplies in process, we look forward to initiating commercialization of Excellagen with strategic and distribution partners having access to podiatrists and other wound care specialists. In that regard, we are pleased to announce the first of what we plan to be a series of marketing and distribution agreements with commercialization partners in the U.S. and other markets consistent with Cardium’s business model.”

CXM shares have risen 20.6% in the last five days and 12.1% in the last month.  Year-to-date, the stock is down 16.0%.

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Based in Lincolnshire, Ill., BioSante is focused on developing products for female sexual health and oncology. Its lead 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 according to a U.S. Food and Drug Administration (FDA) Special Protocol Assessment (SPA).

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 Azur Pharma, BioSante’s licensee. The company also is developing a portfolio of cancer vaccines, four of which have been granted Orphan Drug designation, and are currently in several Phase II clinical trials. Other BioSante products are Bio-T-Gel, a testosterone gel for male hypogonadism, for which a New Drug Application (NDA) is pending, licensed to Teva Pharmaceuticals, and an oral contraceptive in Phase II clinical development.

Shares of BioSante plunged earlier this month after the company reported that LibiGel failed to achieve primary endpoints in the treatment of hypoactive sexual desire disorder in postmenopausal women.  While there were no statistical differences in the endpoints, the company said all results were in the appropriate directions.  Importantly, the company said that, as seen in previous pharmacokinetic data, the LibiGel groups in both trials showed an increase in free testosterone levels compared to baseline and placebo.

The trials demonstrated that LibiGel was generally well tolerated with a safety profile that appears to be comparable to placebo, the company said in a statement.

“We will continue to analyze the efficacy trial data fully and determine plans for our next steps in the LibiGel development plan, and provide an update at a later time, commented BioSante’s president and CEO Stephen M. Simes.  “While the LibiGel Phase III cardiovascular and breast cancer safety study currently continues as planned, we will be analyzing the best path forward for the study given the results reported today. I want to thank our entire BioSante clinical team and the clinical investigators for their tireless efforts in these trials, and I also want to thank the women enrolled in the BLOOM trials for their participation.”

BPAX shares gained 24.5% in the last five days, though the stock dropped 76.7% in the last month.  Year-to-date, the stock is down 74.1%.

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The certification confirms the company’s world-class manufacturing capabilities, and its focus on meeting the highest level of quality assurance for products developed for the medical industry.

Bill Adams, vice president and plant manager of Sanmina-SCI’s Kenosha facility, said that manufacturing reliable and safe medical devices is critical to everyone and that earning the ISO 13485 certification shows its commitment to produce the best quality devices for the medical market and represents a major accomplishment towards its strategy to support medical customers located in the Midwest.

Sanmina-SCI released its most recent quarterly results (Q3) in July. The company reported revenue of $1.67 billion for the third-quarter, up 6.7% on a sequential basis. The company’s GAAP operating margin for the third quarter was 3.2%, representing an improvement of 40 basis points on a sequential basis. The company’s GAAP diluted earnings per share for the third quarter were $0.09.

Since the release of third-quarter financial results, Sanmina-SCI shares are down 22.02%, compared with an 11.96% decline for the NASDAQ. Year-to-date, the stock is down 37.08%, compared with a 6.01% decline for the NASDAQ.

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MELA Sciences (MELA) is a medical technology company focused on developing MelaFind, a non-invasive and objective multi-spectral computer vision system intended to aid in the detection of early melanoma.  The company designed MelaFind to assist in the evaluation of clinically atypical pigmented skin lesions when a dermatologist chooses to obtain additional information before making a final decision to biopsy in order to rule out melanoma.  MelaFind acquires and displays multi-spectral (from blue to near infrared) and reconstructed RGB digital images of pigmented skin lesions and uses automatic image analysis and statistical pattern recognition. Although no cure is currently available for advanced-stage melanoma, the desease is virtually 100% curable if caught early.  By increasing the accuracy and reducing the invasiveness of early screening, MELA hopes to help improve early screening rates, reduce the number of unnecessary biopsies and help save lives.

Source: Reuters.com, SEC Filings.

Investment Highlights

Shares of MELA gained 73.2% in the last five trading days and 76.4% in the last month.  Year-to-date, the stock is down 44.6%.

Shares rocketed 79% yesterday after the New York-based medical device developer said it secured regulatory approval to market its melanoma detection device MelaFind in the European Union (EU). Over 7.8 million shares traded hands during the session, compared to a 10-day average of just over 144K.

MELA received the CE (Conformité Européenne, or European Conformity) Mark approval which allows the Company to market MelaFind freely across the 27 nations that comprise the EU.  According to the release, MELA intends to initially market its skin-cancer detecting device in Germany, which has the highest incidence of melanoma in Europe.

“With more than 81 million people, Germany represents a significant opportunity for the company and an ideal market to launch MelaFind in the EU,” said Joseph V. Gulfo MD, president and CEO of MELA, “Given the high rates of melanoma seen in the German population, we believe MelaFind has the potential to make a deep impact on the disease there. In order to achieve our initial goals for the commercial development phase of the launch, we plan to utilize a direct sales force that will focus on strategically placing MelaFind systems in the top dermatology practices in several key cities throughout the country.”

The clinical data for the CE Mark application were submitted in May 2011 and the complete technical file was submitted in early July 2011.

The studies used to support the CE Mark application were the 1,383-patient U.S. pivotal trial and the companion reader study of 110 dermatologists: the device demonstrated a 98% sensitivity; whereas dermatologists had a 72% sensitivity in the companion reader study.  MELA worked with the U.S. Food and Drug Administration (FDA) to design the pivotal study, the largest ever conducted in melanoma detection, and has a Binding Protocol Agreement with the FDA.  Approximately 11% of all lesions and melanomas in the MelaFind database were obtained from European clinical sites.

In the U.S., the Company submitted a Pre-Market Approval (PMA) application for MelaFind in June 2009, and received a positive vote from the General and Plastic Surgery Devices Panel at an advisory committee meeting in November 2010.   In February 2011, the Company submitted an amendment to the MelaFind PMA application with the FDA, limiting the indication for use to dermatologists and in May 2011 the company submitted another amendment to the MelaFind PMA that incorporated a training program for users.  The Company is currently awaiting the FDA’s decision.

MelaFind Proposed Indications for Use

MELA proposes that MelaFind is indicated for the evaluation of clinically atypical cutaneous pigmented lesions (those having one or more clinical or historical characteristics of melanoma, such as asymmetry, border irregularity, color variegation, diameter greater than 6 mm, evolving, patient concern, regression, and “ugly duckling”), when a dermatologist chooses to obtain additional information before making a final decision to biopsy to rule out melanoma.  MelaFind is a non-invasive and objective multi-spectral computer vision system designed as a tool to aid dermatologists in the detection of early (e.g., non-ulcerated, not bleeding, or less than 2.2 cm in diameter) melanoma.

Source: http://www.melasciences.com/?passthis=yes&andthis=News

Financial Summary

MELA has generated significant losses since its inception. As of June 30, 2011, the Company had an accumulated deficit of $108.9 million. The Company expects to continue to spend significant amounts on the development of MelaFind.

On June 30, 2010, the Company entered into an underwriting agreement, relating to the public offering of 2.2 million shares of the Company’s common stock, at a price to the public of $7.50 per share less underwriting discounts and commissions. The common stock was offered and sold pursuant to the Company’s Prospectus dated June 1, 2010, and the Company’s Prospectus Supplement filed with the SEC on June 30, 2010, in connection with a takedown from the Company’s effective shelf registration statement that closed on July 6, 2010. The gross proceeds to the Company from the sale of the common stock totaled $16.5 million. After deducting the underwriters’ discounts and commissions and other offering expenses, net proceeds were approximately $15.2 million. Approximately $58.5 million remains available under the Company’s 2010 shelf registration statement as of June 30, 2011.

Most of the Company’s expenditures to date have been for research and development activities and general and administrative expenses. Research and development expenses represent costs incurred for product development, clinical trials, activities related to regulatory filings, and manufacturing development efforts. MELA expenses all of its research and development costs as they are incurred. As of August 5, 2011, the Company has not borrowed (other than by issuing convertible notes, all of which have been converted into equity) or financed its operations through equipment leases, financing loans or other debt instruments.

As of June 30, 2011, the Company’s total of cash and cash equivalents was approximately $20.9 million. Management believes that this cash balance will be sufficient to fund the Company’s anticipated level of operations for at least the next twelve months. However, the Company will require additional funds to achieve significant commercialization of MelaFind. There can be no assurances that the Company will be able to raise additional financing in the future. Additional funds may not become available on acceptable terms, and there can be no assurance that any additional funding that the Company does obtain will be sufficient to meet the Company’s needs in the long term. In the event that the Company is unable to raise additional funds, the Company has the ability and intent to reduce certain discretionary expenditures.

MELA’s cash and cash equivalents at June 30, 2011, are liquid investments in money market accounts and deposits with commercial banks, which are held in amounts that substantially exceed FDIC limits.

Net cash used in operations was $9,547 for the six months ended June 30, 2011. For the corresponding period in 2010, net cash used in operations was $9,054. In both periods, cash used in operations was attributable to net losses after an adjustment for non-cash charges related to depreciation/amortization and share-based compensation, and other changes in operating assets and liabilities.

For the six months ended June 30, 2011, there was $31 net cash used in its investing activities for the purchase of fixed assets. For the corresponding period in 2010, $636 net cash was used in its investing activities, for the purchase of fixed assets.

For the six months ended June 30, 2011, no net cash was provided by or used in its financing activities. For the six months ended June 30, 2010, net cash provided by its financing activities was $5,331, representing proceeds from the Committed Equity Financing Facility, as well as the exercise of options and warrants.

Source: http://biz.yahoo.com/e/110805/mela10-q.html

Technical Analysis

Source: http://stockcharts.com

MELA is above the upper Bollinger Band, implying that it is currently extended from its recent trend. Be aware, however, that a cross outside of the Bollinger Bands can sometimes be a signal of trend strength and not, necessarily, trend reversal.

The MACD for MELA 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

Source: Thomson Financial

DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority.  We are neither licensed nor qualified to provide investment advice.

The information contained in our report should be viewed as commercial advertisement and is not intended to be investment advice.  The report is not provided to any particular individual with a view toward their individual circumstances. The information contained in our report is not an offer to buy or sell securities.  We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

Our newsletter and website have been prepared for informational purposes only and are not intended to be used as a complete source of information on any particular company.  An individual should never invest in the securities of any of the companies profiled based solely on information contained in our report.  Individuals should assume that all information contained in the report about profiled companies is not trustworthy unless verified by their own independent research.

Any individual who chooses to invest in any securities should do so with caution.  Investing in securities is speculative and carries a high degree of risk; you may lose some or all of the money that is invested.  Always research your own investments and consult with a registered investment advisor or licensed stock broker before investing.

Information contained in our report will contain “forward looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934.  Subscribers are cautioned not to place undue reliance upon these forward looking statements.  These forward looking statements are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ materially from those anticipated.  Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company’s most recent reports or registration statements filed with the SEC.  You should consider these factors in evaluating the forward looking statements included in the report and not place undue reliance upon such statements.

We are committed to providing factual information on the companies that are profiled.  However, we do not provide any assurance as to the accuracy or completeness of the information provided, including information regarding a profiled company’s plans or ability to effect any planned or proposed actions.  We have no first-hand knowledge of any profiled company’s operations and therefore cannot comment on their capabilities, intent, resources, nor experience and we make no attempt to do so.  Statistical information, dollar amounts, and market size data was provided by the subject company and related sources which we believe to be reliable.

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We encourage you to invest carefully and read investment information available at the websites of the SEC at http://www.sec.gov and FINRA at http://www.finra.org.

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Aeterna Zentaris Inc. (AEZS) is a late-stage oncology drug development company currently investigating potential treatments for various cancers including colorectal, multiple myeloma, endometrial, ovarian, prostate and bladder cancer. The Company’s innovative approach of “personalized medicine” means tailoring treatments to a patient’s specific condition and to unmet medical needs. AEZS’s deep pipeline is drawn from its proprietary discovery unit providing the Company with constant and long-term access to state-of-the-art therapeutic options.

Source: Reuters.com, SEC Filings

Investment Highlights

Shares of AEZS have gained 10.94% in the last five days; 2.53% in the last month; and 111.46% year-to-date.

Shares of the Quebec-based cancer and endocrine drug maker jumped as much as 14% on Tuesday after it announced positive results of its completed Phase III study with AEZS-130 as the first oral diagnostic test for Adult Growth Hormone Deficiency (AGHD).

In the press release, the Company said the results show that AEZS-130 reached its primary endpoint demonstrating >90% area-under-the-curve (AUC) of the Receiver Operating Characteristic (ROC) curve, which determines the level of specificity and sensitivity of the product. The Company added that it is currently proceeding with further detailed analyses of the data and preparing for a pre-New Drug Application (NDA) meeting with the U.S. Food and Drug Administration (FDA) in the upcoming months, which would be followed by the filing of an NDA for the registration of AEZS-130 in the United States.

The parameters of the study were achieved as agreed to with FDA under the Company’s Special Protocol Assessment (SPA). Importantly, the primary efficacy parameters show that the study achieved both specificity and sensitivity at a level of 90% or greater.  In addition, 8 of the 10 newly enrolled AGHD patients were correctly classified by a pre-specified peak GH threshold level. The use of AEZS-130 was shown to be safe and well tolerated overall throughout the completion of the trial.

AEZS-130, a ghrelin agonist, is a novel orally active small molecule that stimulates the secretion of growth hormone.  It has been granted orphan-drug designation by the FDA for use as a diagnostic test for growth hormone deficiency. Aeterna Zentaris owns the worldwide rights to AEZS-130 which, if approved, would become the first orally administered diagnostic test for AGHD.

AGHD affects 35,000 adult Americans, with 6,000 new adult patients diagnosed each year. Growth hormone not only plays an important role in growth from childhood to adulthood, but helps promote good health throughout life. It is usually characterized by low energy levels, decreased strength and exercise tolerance, increased weight or difficulty losing weight, emotional changes, anxiety and impaired sleep.

Investors also welcomed news yesterday that a poster on AEZS’s novel orally active anticancer Erk inhibitor, which includes AEZS-131, was presented at the 242nd American Chemical Society National Meeting held at the Colorado Convention Center in Denver, Colorado. The poster was presented by Matthias Gerlach Ph.D., senior director of medicinal chemistry for AEZS.

Source: http://www.aezsinc.com/en/page.php?p=60

Financial Summary

AEZS reported revenues of $6.5 million for the three-month period ended June 30, 2011, as compared to $5.6 million for the same period in 2010. This increase is largely related to comparative higher-than-normal deliveries of Cetrotide to certain customers, as well as to the comparative strengthening of the euro against the U.S. dollar.

Research and development costs, net of tax credits and grants were $5.6 million for the three-month period ended June 30, 2011, as compared to $5.4 million for the same period in 2010.

Selling, general and administrative expenses were $3.4 million for the three-month period ended June 30, 2011, as compared to $3.7 million for the same period in 2010.

Net finance (costs) income are comprised predominantly of net foreign exchange gains and losses, the change in fair value of the Company’s warrant liability and the unrealized gain on the Company’s short-term investment (2011 only).

For the three-month period ended June 30, 2011, net finance costs totaled $2.6 million, as compared to a net finance income of $1.8 million for the same period in 2010. This significant increase in net finance costs is due to the change in fair value of the Company’s warrant liability. That change results from the periodic “mark-to-market” revaluation of currently outstanding share purchase warrants. Additionally, the increase is due to higher foreign exchange losses, which in turn resulted primarily from the comparative weakening of the U.S. dollar against the euro during the second quarter of 2011, partially offset by the unrealized gains on the Company’s short-term investment, which is carried at fair value. Neither the loss resulting from the periodic mark-to-market valuation of the warrants nor the gain resulting from the fair value adjustments to the short-term investment has resulted in any cash disbursement or cash receipt during the three-month period ended June 30, 2011.

Net loss for the three-month period ended June 30, 2011, was $10.6 million, or $0.12 per basic and diluted share, as compared to $6.2 million, or $0.08 per basic and diluted share, for the same period in 2010. This increase is mainly related to higher net finance costs related to the periodic mark-to-market valuation of the warrants (non-cash) and higher foreign exchange losses, partly compensated by the unrealized gains on the Company’s short-term investment (non-cash).

Source: http://www.aezsinc.com/en/page.php?p=60&q=450

Technical Analysis

Source: http://stockcharts.com

AEZS is above the upper Bollinger Band, implying that it is currently extended from its recent trend.

AEZS’s MACD is currently indicating a weak bullish signal. Although the MACD is trending above the signal line, the indicator is still below 0, which suggests that the underlying moving averages are bearish.

Comparative Analysis

Source: Thomson Financial

DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority.  We are neither licensed nor qualified to provide investment advice.

The information contained in our report should be viewed as commercial advertisement and is not intended to be investment advice.  The report is not provided to any particular individual with a view toward their individual circumstances. The information contained in our report is not an offer to buy or sell securities.  We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

Our newsletter and website have been prepared for informational purposes only and are not intended to be used as a complete source of information on any particular company.  An individual should never invest in the securities of any of the companies profiled based solely on information contained in our report.  Individuals should assume that all information contained in the report about profiled companies is not trustworthy unless verified by their own independent research.

Any individual who chooses to invest in any securities should do so with caution.  Investing in securities is speculative and carries a high degree of risk; you may lose some or all of the money that is invested.  Always research your own investments and consult with a registered investment advisor or licensed stock broker before investing.

Information contained in our report will contain “forward looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934.  Subscribers are cautioned not to place undue reliance upon these forward looking statements.  These forward looking statements are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ materially from those anticipated.  Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company’s most recent reports or registration statements filed with the SEC.  You should consider these factors in evaluating the forward looking statements included in the report and not place undue reliance upon such statements.

We are committed to providing factual information on the companies that are profiled.  However, we do not provide any assurance as to the accuracy or completeness of the information provided, including information regarding a profiled company’s plans or ability to effect any planned or proposed actions.  We have no first-hand knowledge of any profiled company’s operations and therefore cannot comment on their capabilities, intent, resources, nor experience and we make no attempt to do so.  Statistical information, dollar amounts, and market size data was provided by the subject company and related sources which we believe to be reliable.

To the fullest extent of the law, we will not be liable to any person or entity for the quality, accuracy, completeness, reliability, or timeliness of the information provided in the report, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information we provide to any person or entity (including, but not limited to, lost profits, loss of opportunities, trading losses, and damages that may result from any inaccuracy or incompleteness of this information).

We encourage you to invest carefully and read investment information available at the websites of the SEC at http://www.sec.gov and FINRA at http://www.finra.org.

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PharmAthene Inc. (PIP) is a biodefense company engaged in the development and commercialization of medical countermeasures against biological and chemical weapons. The Company’s lead product development programs include: SparVax, a second generation recombinant protective antigen (rPA) anthrax vaccine and a third generation anthrax vaccine with potential for improved potency and stability; Valortim, a fully human monoclonal antibody for the prevention and treatment of anthrax infection; and rBChE (recombinant butyrylcholinesterase), which countermeasures for nerve agent poisoning by organophosphorous compounds, including nerve gases and pesticides.

PIP was incorporated in 2005 and is based in Annapolis, Maryland.

Source: Reuters.com, SEC Filings.

Investment Highlights

Shares of the biodefense company spiked more than 26% in Tuesday’s trading, a day after the Company was highlighted in a SeekingAlpha report, which suggests that a lawsuit it is involved in with Siga Technologies (NASDAQ: SIGA) will likely be ruled in its favor.

PIP added $0.63 to close the session at $3.04.  In the past 52 weeks, PIP has traded between a low of $1.26 and a high of $4.96.  Approximately 2.65 million shares have traded hands during the session, versus the average daily volume of 1.01 million.  PIP remains below its 50-day and 200-day moving averages of $3.54 and $3.46, respectively.

The company last week announced the completion of a previously announced registered direct offering, which raised gross proceeds of about $6.5 million. Approximately $5.8 million worth of net proceeds remain from its offering, after placement agent fees and other offering expenses, which PIP intends to use for general corporate purposes.

PIP posted revenue of $6.3 million for the first quarter of 2011, compared with $3.1 million in the same period of 2010. It said the higher revenue was a result of increased revenue for the SparVax program, which totaled $5.4 million for the three months ended March 31, 2011, as against $2.1 million for the same period in 2010.  PIP attributed SparVax program’s higher revenue to additional work completed during the quarter in relation to the Company’s manufacturing platform for SparVax and the establishment of analytical and stability-indicating assays for characterization of the product.  The Company recognized $0.8 million of revenue for its Valortim program for each of the three months ended March 31, 2011 and 2010, respectively.

The Company’s research and development expenses increased to $5.8 million for the period ended March 31, 2011, compared to $5.0 million in the same period of 2010.  These expenses resulted from research and development activities related to the Company’s Valortim and SparVax programs, and to a lesser extent, expenses related to the Protexia bioscavenger program.  Research and development expenses increased for the period ended March 31, 2011, compared to the prior year period, primarily due to increased activity under the Company’s SparVax program and the completion of patient dosing in the Phase I Valortim dose escalation clinical trial, partially offset by the decrease in development expenses related to the Protexia bioscavenger program, which was completed in 2010.

PIP posted a net loss of $2.1 million, or $(0.04) per share, for the first quarter of 2011, narrowing the year-ago quarter’s loss of $7.9 million, or $(0.28) per share, in the same period of 2010.  The year-over-year decrease in net loss includes the impact of the change in fair value of the Company’s derivative instruments, which was $2.5 million for the three months ended March 31, 2011, compared to $0.3 million for the three months ended March 31, 2010. The decrease in fair value, which became a source of other income, was primarily associated with a decrease in PIP’s stock price from December 31, 2010, to March 31, 2011.

The Company’s cash and cash equivalents, short-term investments, and net U.S. government accounts receivables and other receivables, including unbilled receivables, totaled approximately $18.7 million as of March 31, 2011, down from $21.6 million at December 31, 2010.  PIP attributed the decline to the net impact of cash used to fund operations.

The Company’s next earnings report is expected on August 08, 2011.

Visit PIP at www.pharmathene.com

Technical Analysis

Source: http://stockcharts.com

Comparative Analysis

Source: Thomson Financial

DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority.  We are neither licensed nor qualified to provide investment advice.

The information contained in our report should be viewed as commercial advertisement and is not intended to be investment advice.  The report is not provided to any particular individual with a view toward their individual circumstances. The information contained in our report is not an offer to buy or sell securities.  We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

Our newsletter and website have been prepared for informational purposes only and are not intended to be used as a complete source of information on any particular company.  An individual should never invest in the securities of any of the companies profiled based solely on information contained in our report.  Individuals should assume that all information contained in the report about profiled companies is not trustworthy unless verified by their own independent research.

Any individual who chooses to invest in any securities should do so with caution.  Investing in securities is speculative and carries a high degree of risk; you may lose some or all of the money that is invested.  Always research your own investments and consult with a registered investment advisor or licensed stock broker before investing.

Information contained in our report will contain “forward looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934.  Subscribers are cautioned not to place undue reliance upon these forward looking statements.  These forward looking statements are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ materially from those anticipated.  Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company’s most recent reports or registration statements filed with the SEC.  You should consider these factors in evaluating the forward looking statements included in the report and not place undue reliance upon such statements.

We are committed to providing factual information on the companies that are profiled.  However, we do not provide any assurance as to the accuracy or completeness of the information provided, including information regarding a profiled company’s plans or ability to effect any planned or proposed actions.  We have no first-hand knowledge of any profiled company’s operations and therefore cannot comment on their capabilities, intent, resources, nor experience and we make no attempt to do so.  Statistical information, dollar amounts, and market size data was provided by the subject company and related sources which we believe to be reliable.

To the fullest extent of the law, we will not be liable to any person or entity for the quality, accuracy, completeness, reliability, or timeliness of the information provided in the report, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information we provide to any person or entity (including, but not limited to, lost profits, loss of opportunities, trading losses, and damages that may result from any inaccuracy or incompleteness of this information).

We encourage you to invest carefully and read investment information available at the websites of the SEC at http://www.sec.gov and FINRA at http://www.finra.org.

No related posts.

Source: Reuters.com, SEC Filings.

Investment Highlights

Shares of RPC spiked more than 19% to close Monday at $0.25.  About 13.98 million shares have traded hands during the session, versus the 10-day average volume of 2.87 million.  PMI has so far reached a 52-week high of $4.68, its 52-week low being $0.14.  The stock is currently below its 50-day and 200-day moving averages of $0.31 and $0.52, respectively.

RPC shares were boosted last week after Dr. Umesh Bhatia Ph.D, asenior advisor for RPC in India, revealed that his group has secured a major new partnership that should clearly benefit RPC and is expected to impact the Company’s bottom line. Dr. Bhatia stated in an interview: “Besides the government sponsored programs which we have continued to diligently work on, there is a new joint venture/partnership with Super Religare Laboratories which is the biggest diagnostics lab in India.”

RPC had not disclosed this development in recent filings or issued a press release previously, but Dr. Bhatia stated that the new partnership had been established directly through his efforts and Gaur Diagno, the exclusive India-based distribution partners of RPC, and not RPC itself.

Visit RPC at www.radient-pharma.com

Financial Summary

Revenue for the fiscal 2011 first quarter ended March 31, 2011, was $30,655, as compared to $36,842 in the period ended March 31, 2010. This decrease of 17% was due to a slight decrease in orders for the Onko-Sure test kits during the quarter. RPC had an additional $28,700 in orders on-hand as of March 31, 2011, which were not shipped until April 2011. RPC therefore did not recognize such revenue until shipment was made in the second quarter.

Loss from operations for the three months ended March 31, 2011, was $(1,888,506), as compared to loss from operations in the prior year of $(1,391,311). The $497,195 or 36% increase in loss from operations was primarily due to an increase in selling, general and administrative expenses.

Net loss for the first quarter of fiscal 2011 was $(11,427,555) or $(0.13) per share, as compared to first quarter fiscal 2010 net loss of $(2,597,242) or $(0.11). The increase in net loss is attributed to higher interest expense and a loss on extinguishment of debt, partially offset by a change in fair value of derivative liabilities.

Going Concern Disclosure

RPC’s Quarterly Report on Form 10-Q includes a “going concern” explanatory disclosure which expresses doubt, based upon current financial resources, as to whether RPC can meet its continuing obligations without access to additional working capital. The Company intends to raise additional capital and pursue expense reductions to ensure its ongoing financial viability.  RPC’s Form 10-K for the fiscal year ended December 31, 2010 included an audit opinion with a “going concern” explanatory paragraph. This disclosure is in compliance with the NYSE-AMEX Company Guide Rule 610(b) requiring a public announcement of the receipt of an audit opinion that contains a going concern qualification and does not reflect any change or amendment to the consolidated financial statements as filed. Further information regarding the going concern qualification is contained in RPC’s Annual Report on Form 10-K for the fiscal year ended December 31, 2010.

Technical Analysis

Source: http://stockcharts.com

RPC is trading within its Bollinger Bands. This is a normal condition and suggests that the stock is neither overbought nor oversold relative to the recent price action.

RPC’s MACD is currently indicating a weak bullish signal. Although the MACD is trending above the signal line, the indicator is still below 0, which suggests that the underlying moving averages are bearish.

Comparative Analysis

Source: Thomson Financial

DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority.  We are neither licensed nor qualified to provide investment advice.

The information contained in our report should be viewed as commercial advertisement and is not intended to be investment advice.  The report is not provided to any particular individual with a view toward their individual circumstances. The information contained in our report is not an offer to buy or sell securities.  We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

Our newsletter and website have been prepared for informational purposes only and are not intended to be used as a complete source of information on any particular company.  An individual should never invest in the securities of any of the companies profiled based solely on information contained in our report.  Individuals should assume that all information contained in the report about profiled companies is not trustworthy unless verified by their own independent research.

Any individual who chooses to invest in any securities should do so with caution.  Investing in securities is speculative and carries a high degree of risk; you may lose some or all of the money that is invested.  Always research your own investments and consult with a registered investment advisor or licensed stock broker before investing.

Information contained in our report will contain “forward looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934.  Subscribers are cautioned not to place undue reliance upon these forward looking statements.  These forward looking statements are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ materially from those anticipated.  Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company’s most recent reports or registration statements filed with the SEC.  You should consider these factors in evaluating the forward looking statements included in the report and not place undue reliance upon such statements.

We are committed to providing factual information on the companies that are profiled.  However, we do not provide any assurance as to the accuracy or completeness of the information provided, including information regarding a profiled company’s plans or ability to effect any planned or proposed actions.  We have no first-hand knowledge of any profiled company’s operations and therefore cannot comment on their capabilities, intent, resources, nor experience and we make no attempt to do so.  Statistical information, dollar amounts, and market size data was provided by the subject company and related sources which we believe to be reliable.

To the fullest extent of the law, we will not be liable to any person or entity for the quality, accuracy, completeness, reliability, or timeliness of the information provided in the report, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information we provide to any person or entity (including, but not limited to, lost profits, loss of opportunities, trading losses, and damages that may result from any inaccuracy or incompleteness of this information).

We encourage you to invest carefully and read investment information available at the websites of the SEC at http://www.sec.gov and FINRA at http://www.finra.org.

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