ELN

I will give you my take since you are being ignored. I very very leary of pharma. Expecially the smaller companies with not so many drugs in their pipeline. The process of bringing a new drug...or class of drugs...to market is complicated to say the least. There are many steps...any of which could delay or destroy a promising product. Then...even after the drug is on the market there can be unanticipated side effects and subsequent litigation that could take down even a giant like a Merck or a Pfizer...much less a smaller company. So...to me there are too many risks on too many levels. I stay away completely. Now this one really got slammed...see the above comment on idiosyncratic side effects...and might be good for a bounce. But, there is a huge gap down to work through and it would not be the kind of thing that would interest me.

The stock was a little overpriced, but a 40% drop on OK news from its phase 2 trial for bapineuzumab puts it right back in the 'reasonably valued' class, and although the chances of gigantic success from bap have taken a baby step backwards, there is stille lots to look forward to, including natalizumab and its brilliant trajectory so far, and its safety profile which keep looking better with every passing month.

Hi allboz,
Pharma is a very complicated business and I'm with Contrary on this.. It's a business that you need to know a lot about to invest..
I do however, own 2 pharma stocks:
Gilead sciences (GILD) who practically own the HIV medecation market. Their drug cocktail is widely accepted as the most effective and they are raking in the cash in a big way.. this party should last them for a long while.
I also own a bit of Cubist Pharmasuitical (CBST). Turnes out the baest place to get sick is.. the hospital. Hospitals are basically spaces infested with bacteria and viruses. Cubist's product is an antibiotic that is injected into hospitals air systems and is successful in lowering the risk of infection.
It is gaining new customers rapidly and already in the stage of bringing in serious cash (355 mil in revs and 100 mill in cash flow).
The stock has been on a steady climb since July and with a short interest of 20% it sounds like it could go way further.
I would love to hear what the technical analysts think about it's chart.
Cheers.

Buy Buy Buy. of course I only look at the chart

Interesting how two technicians see different things. In the position its in right now technically, I see this effectively going to zero although bounces always happen on the way down. Time may reveal a different interpretation but I would sell every substantial rally. JMO of course.

Lookin at gap closure.

Also depends on time frame. I wouldn't buy and hold anything right now. Elan looks like it's going to close the gap...

Similar charts from my list: AEHR, TTEC, INAP

Note: Panic Ceates Opportunity. Buy into Terror sell into exuberance. But you have to wait for Terror, not just fear or uncertainty. ELN price decline was terror.

RE: CBST I have no opinion on CBST the chart is too advanced (Rally too mature) for my tastse.

I agree re: phrama. Wouldn't touch the sector with a ten-foot pole. Way too many regulations and unknowns.

I also oppose it on moral grounds, as its more profitiable to make people sick and keep them that way than it is to actually treat an illness. A cure for cancer, for example, would decimate the healthcare industry.

Vendetta - couldn't say better.. I think all these pharma giants that keep people sick and in need for medicines shouldn't be allowed to make ny profit.

They're all a bunch of crooks. If people only knew!

Yo V4 et al. Make and keep people sick, eh. I am an ER DOC. That is why I don't have time to DAY TRADE. I think those are three of the most irresponsible comments I have ever heard.

Evil can be found in any industry... It's up to government to create a playing field that benefits the people. I don't think it's fair to blame pharmas. There will always be a need for new drugs and medications so the industry has nothing to worry about.
That said, there is a built in problem in this sector. Take a terrible disease like turret syndrome. Too few people have it so it's not worth finding a cure for.. this is where government needs to step in and say: "We'll give you a grant / tax break on any drug that treats this disease". Government needs to create incentive for R&D research to go into important fields.

Agreed, Guliamo. Pharma must pay attention to the bottom line just like any other business. If they don't make money, and lots of it, there is no funding for R&D...which is extra-ordinarily expensive. You are right about the drugs to treat uncommon illnesses. They have to look at the potential market vs. the R&D. That is where government grants or charitable foundations come in (can you say Gates and Buffett).

Yes...they are in it for the $$$. How could you expect it to be different?

Hate this sector and see it as nothing more than a crap shoot. The only plays in the whole sector that I consider making are generic producers since their outputs are more predictable, and they are not slaves to drug approvals.......

The only thing that might also be worth looking at are the biotech stocks, but they've already had a run up. If PBE, a biotech ETF, pulled back to the 17-18 levels I may consider picking some up just to diversify a bit more. Plus, being in an ETF the risk doesn't all lay with the success of a single company.