Three Biotech Stocks Are Tumbling: VIVUS, Inc. (NASDAQ:VVUS …
Many individual investors have opted to invest in biotech ETFs and mutual funds. The XBI and SBIO funds have performed well because they focus more on small and mid-sized biotech companies. The IBB, which has emerged as something of a proxy for the industry for many investors, is weighted much more heavily to bigger, more proven biotech companies.
The volatility of small- and mid-sized biotech stocks mean they will fall sharply once the inevitable correction comes, whether they have promising drugs in the works or not. The wildcard in the sector is the possibility of a wave of M&A, which could drive up some stocks.
But if picking which company has the next blockbuster drug is tough, anticipating the next M&A target is even trickier. And the longer the biotech rally continues, the more important it becomes to pick the winners from the losers.
On the trading floor, shares of VIVUS, Inc. (NASDAQ:VVUS) dropped 2.54% to close at $1.15. The $122.74M company on july 30, 2015 reported its financial results for the second quarter ended June 30, 2015.
Total revenue was $23.0 million in the current quarter, compared to $21.9 million in the second quarter of 2014. Of the total revenue, net product revenue was $14.0 million from sales of Qsymia in the current quarter, compared to $11.0 million in the second quarter of 2014. In addition, under our commercialization agreements for STENDRA® or SPEDRA™, we recognized $8.1 million in supply revenue in the current quarter, compared to $5.7 million in the second quarter of 2014. We also recognized $0.9 million in royalty revenue in the current quarter, compared to $1.1 million in the second quarter of 2014.
Net loss, excluding inventory impairment charges of $29.5 million, was $19.8 million, or $0.19 net loss per share, in the current quarter, compared to a net loss of $25.8 million, or $0.25 net loss per share, in the second quarter of 2014.
Celgene Corporation (NASDAQ:CELG) closed at $130.30 with a decrease of0.56%. The $103.58B company on August 4, 2015 announced the successful pricing of five series of senior unsecured notes for an aggregate principal amount of $8.0 billion. Of these notes, $1.0 billion will mature in 2018 and will bear interest at an annual rate of 2.125 percent, $1.5 billion will mature in 2020 and will bear interest at an annual rate of 2.875 percent, $1.0 billion will mature in 2022 and will bear interest at an annual rate of 3.550 percent, $2.5 billion will mature in 2025 and will bear interest at an annual rate of 3.875 percent and $2.0 billion will mature in 2045 and will bear interest at an annual rate of 5.000 percent. The 2.125 percent notes due 2018, the 2.875 percent notes due 2020, the 3.550 percent notes due in 2022, the 3.875 percent notes due in 2025 and the 5.000 percent notes due in 2045 were priced to yield 2.127 percent, 2.914 percent, 3.594 percent, 3.993 percent and 5.020 percent, respectively.
ZIOPHARM Oncology Inc. (NASDAQ:ZIOP) ended at $10.27 by losing 2.93%. The $1.38B company on August 10, 2015announced financial results for the second quarter ended June 30, 2015.
Net loss for the second quarter of 2015 was $14.2 million, or $(0.11) per share, compared to a net loss of $5.6 million, or $(0.06) per share, for the second quarter of 2014. Included in the loss for the second quarter of 2014 was non-cash income of $5.6 million, or $(0.06) per share for the change in fair value of warrants.
The Company ended the quarter with cash and cash equivalents of approximately $118.6 million. In addition, on July 31, 2015, the Company received $57.5 million from Intrexon related to the Merck Serono agreement. Given current development plans, the Company anticipates that current cash resources, including the recent cash payment received from Intrexon pursuant to the Merck Serono collaboration, will be sufficient to fund our planned operations into the first quarter of 2018.
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Three Biotech Stocks Are Tumbling: VIVUS, Inc. (NASDAQ:VVUS …
