Optimer Pharmaceuticals OPTR is another biotech momentum candidate

22 Feb

Optimer Pharmaceutical is another upcoming biotech with a chance for some momentum due to some upcoming game changing events.  See my research below.  Always do your own due diligence before buying any security and please see my diclaimer at the end of this report.

 Notes on Fidaxomicin

  • for treatment of Clostridium Difficile Infection or CDI
  • Optimer recently received a priority review PDUFA date of May 30, 2011 for its NDA of Fidaxomicin and an advisory committee on April 5th:

 http://www.optimerpharma.com/news.asp?news_story=145&page_num=&year=2011

 Currently over 700k cases in U.S. per year ~ blockbuster potential

  • Optimer plans to market the drug in the U.S. and use 3rd party outside the U.S.
  • According to research by Decision Resources, Fidaximicin will be used by the majority of infectious disease specialists.

 http://www.optimerpharma.com/news.asp?news_story=124&page_num=&year=2010

 Additional product pipeline is as follows:

Another exciting product is Pruvel for the treatment of infectious diarrhea, however the company has voluntarily terminated its research study on this due to higher than expected incidences of mild skin rashes during use.  There is no current timeline given by the Company as to how long it will take to research this skin rash issue.

 Financial info:

     On 2/16, Optimer completed a public offering of 6.9M shares at $11.25 per share, resulting in gross proceeds to Optimer of $77.6M ~ now that this offering is done, we can expect some momentum going into the panel and PDUFA event

     Annual filing expecting on or around March 10, 2011

     Last quarter filing

  • Cash and cash equivalents $58M
  • No long-term debt
  • 9 mo revenue of only $1.3M

 Stock data:

  

The stock price is currently at 11.90.  The market just dropped considerably today possibly starting a small correction.  My price range to buy would be around 11.25-11.50, adding more if it goes below 11.  The year end earnings should not affect the stock too much as there are no revenues.  My target is from $13-14, with further upside after approval of $15-16.

See my other reports on upcoming biotech momentum plays and sign up for e-mail alerts:

SPPI

https://pokerexpress.wordpress.com/2011/02/09/spectrum-pharmaceuticals-sppi-has-room-to-run/

 XNPT

https://pokerexpress.wordpress.com/2011/02/03/xnpt-cleared-for-takeoff/

Disclosure:  currently no position in OPTR

Disclaimer: I have never ever been paid or compensated by anyone for any stock I trade or discuss. None of the information posted on this site is to be construed as financial or investment advice. This information is not to be construed as an offer to buy or sell any security mentioned on this board. The creator of this board is not a licensed broker or financial advisor of any kind. The information on this site is gathered from sources available to the public. As consideration in using this board, all users agree, understand, and acknowledge the creator of the board is not liable or responsible for the accuracy or use of the information provided on this site and agree to indemnify and hold the creator of this board harmless from any liability resulting from the accuracy or inaccuracy of the information and from use of the information on this board. All of the information that I post on this board is public information available to anyone! You are responsible for your own trades and not the creator of this board.  Please be aware that investing in securities carries the risk of losing some or all of your money.

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6 Responses to “Optimer Pharmaceuticals OPTR is another biotech momentum candidate”

  1. pokerexpress March 31, 2011 at 11:37 am #

    Tough action on OPTR – it popped last week and now is falling below where it started. What does this mean? I presume the $mart money thinks that the April 6th panel is going to be negative. One option is to sell out now and take your loss and move on – the market is telling you something bad here ~ the same happend in XNPT recently. The other option is to hold through the panel. Because it looks like the market is expecting bad news, then mediocre to good news should give the stock a little boost. Depending on the pop, you can then ride to the pdufa and sell right before or even dump it into the strength of the news. Good luck!!

  2. pokerexpress April 6, 2011 at 11:52 am #

    Bought OPTR today on the selloff, expecting a bounce from here until the pdufa date to over 14. Here is why:
    -With a 13-0 panel vote for approval, it is most likely the drug will get approved
    -They just announced an co-promotion agreement with Cubist Pharmaceutical today where they pay Cubist $15M per year (paid in quarterly service fees of 3.75M) for two years. Optimer may have to pay an additonal $5M in the first year and up to $12.5M in the second if certain sales targets are achieved.
    -I think the sell off is due to the uncertainty as to whether the deal is good for Optimer or not. That is why I believe Cubist (CBST) is up over 3% today. This is because currently wallstreet believes the deal is in favor of Cubist, however, we don’t really care who the deal is in favor or not, because once the dust settles, IMO OPTR trades back over $14-15 before the pdufa and then we take a nice low risk profit.

    New disclosure: Long OPTR

  3. Pharmacist April 27, 2011 at 3:36 am #

    Bought 1500 shares @ 12.60. Hoping for a $4/share increase, maybe less. We shall see! This will be a 3rd line drug for really bad C diff cases after metronidazole and Vanco. Sell on or before approval!

    • pokerexpress April 27, 2011 at 10:27 pm #

      I agree, I have a 10% holding and will hold through approval unless we get a nice run to the approval date. I think it has a great chance of approval although the labeling issue and the deal with Cubist has been a drag on the stock. GLT

  4. pokerexpress May 25, 2011 at 3:30 pm #

    Sold half of my holdings here today at 13.99 at a 7% gain. Wanted to add more at 12.30 2 weeks ago but had no free cash flow. I am holding the other half through approval announcement expecting a 2-3 point pop on approval at an 85% chance of approval. 4-5 point drop on non-approval. Risk favors the reward so I am holding tight. GLT

    • pokerexpress May 31, 2011 at 1:50 pm #

      Sold the other half at 14.14. Oh well, we got a pop but unfortunately the bear raid took the stock down to 12 and change on Friday. So all in all not a bad trade as I earned about 7% in 52 days or an annualized 48%. Not too shabby…

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