EmailGeneral Commentary: NPSP Pharmaceuticals (NPSP) is trading higher by over 20% this morning. The FDA release the briefing documents ahead of the October 16 Advisory Committee meeting for Gattex. Gattex is a novel, recombinant analog of human glucagon-like peptide 2 (a protein involved in the rehabilitation of the intestinal lining) being developed for the treatment of adults with short bowel syndrome. With no major red flags, the briefing documents were viewed as a strong positive. With regards to efficacy the FDA said, "The benefits of Gattex include its ability to reduce parenteral nutrition requirements in patients with Short Bowel Syndrome." No serious safety issues were raised. Lastly, when discussing REMS the FDA said, "The Agency does not believe that access to GATTEX for SBS should be restricted or require elements to assure safe use."
Gainers on news:
- NPS Pharmaceuticals (NPSP +22.23%) Briefing documents released ahead of FDA Advisory Committee meeting were positive
- Lexicon Pharmaceuticals (LXRX +7.88%) Announced that the second Phase 2 trial of telotristat etiprate shows positive results in carcinoid syndrome
- StemCells (STEM +4.96%) Awarded broad U.S. patent covering expandable liver cells
- AEterna Zentaris (AEZS -22.12%) Priced public offering of 6.6 mln units, with each unit consisting of one common share and 0.45 of a warrant to purchase one common share, at $2.50 per unit
- AdCare Health Systems (ADK -1.55%) To sell six assisted living facilities for $22.3 mln, increasing focus on skilled nursing facilities
Decliners on earnings: No notable decliners on earnings
Upgrades/Downgrades:
- Aegerion Pharmaceuticals (AEGR +10.37%) Initiated with a Buy at Capstone Investments, target $21
- RTI Biologics (RTIX +2.92%) Initiated with an Outperform at JMP Securities
- ArthroCare (ARTC +1.81%) Initiated with an Outperform at JMP Securities
- EXACT Sciences (EXAS -4.74%) Downgraded to Neutral from Outperform at Wedbush
- Xenoport (XNPT -5.29%) Downgraded to Neutral from Overweight at Piper Jaffray
