Response: PMTI, Exubera, CEGE :: Michael Shulman's Biotech Blitz

Response: PMTI, Exubera, CEGE

Thanks for the questions on Palomar Medical (PMTI), Exubera from Nektar (NKTR) and Pfizer (PFE) and Cell Genesys (CEGE).

Palomar Medical -- this kind of sell off has been typical of the stock for the past four years as it rises sharply then pulls back as professional investors take profits and get nervous about something -- and unreasonably so. PMTI has an extremely strong grip on the core technology of its marketplace, is very well managed, still has the upside catalyst of the launch of the home hair removal device and the next step in the home fat removal device with Johnson & Johnson (JNJ) and this is a good buying opportunity. In the future, investors should consider selling calls after the company spikes on good news, generate some cash, go to dinner or buy some puts. If investors had sold calls above $52, and bought $50 calls, both close in, you would have doubled or tripled your money in a few days.

Exubera -- I am more disappoint4ed than anyone -- except the folks at Nektar -- about Pfizer's slowness in marketing Exubera. I am still a bull, in part because PFE has committed to spending $50 million on education and marketing as well as direct to consumer advertising around mid year. Please remember, the company is mature, has two major technology franchises, lots of licensees and products on the market or in late stage development and pounds of cash, so there is little company risk. It is also unloved on Wall Street - another good thing for the longer term.

Cell Genesys has an interesting product that will go into Phase III trials mid-year. The company is working on a prostate cancer "vaccine" that uses different technology and is often compared to the personalized prostate cancer treatment from Dendreon (DNDN) now under review by the FDA. The FDA should make a decision no later than May 15th on this treatment from Dendreon, called Provenge, and Cell Genesys stock will move alongside DNDN stock. If there is an approval for Provenge, not only will the stock move on that approval but will also move when CEGE begins trial enrollment in the summertime.

Comments

Thanks for the questions on Palomar Medical (PMTI), Exubera from Nektar (NKTR) and Pfizer (PFE) and Cell Genesys (CEGE). Palomar Medical -- this kind of sell off has been typical of the stock for the past four years as it rises sharply then pulls back as professional investors take profits and get nervous about something -- and unreasonably so. PMTI has an extremely strong grip on the core technology of its marketplace, is very well managed, still has the upside catalyst of the launch of the home hair removal device and the next step in the home fat removal device with Johnson & Johnson (JNJ) and this is a good buying opportunity. In the future, investors should consider selling calls after the company spikes on good news, generate some cash, go to dinner or buy some puts. If investors had sold calls above $52, and bought $50 calls, both close in, you would have doubled or tripled your money in a few days. Exubera -- I am more disappoint4ed than anyone -- except the folks at Nektar -- about Pfizer's slowness in marketing Exubera. I am still a bull, in part because PFE has committed to spending $50 million on education and marketing as well as direct to consumer advertising around mid year. Please remember, the company is mature, has two major technology franchises, lots of licensees and products on the market or in late stage development and pounds of cash, so there is little company risk. It is also unloved on Wall Street - another good thing for the longer term. Cell Genesys has an interesting product that will go into Phase III trials mid-year. The company is working on a prostate cancer "vaccine" that uses different technology and is often compared to the personalized prostate cancer treatment from Dendreon (DNDN) now under review by the FDA. The FDA should make a decision no later than May 15th on this treatment from Dendreon, called Provenge, and Cell Genesys stock will move alongside DNDN stock. If there is an approval for Provenge, not only will the stock move on that approval but will also move when CEGE begins trial enrollment in the summertime.