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Wed, January 26, 2011

GNVC, GNMSF, GILD, GERN, FOLD, EXEL, Biomed - Genetics Stocks 58.19% undervalued


Published on 2011-01-26 12:33:18 - WOPRAI
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January 26, 2011 / M2 PRESSWIRE / BUYINS.NET / http://www.squeezetrigger.com is monitoring the Biomed - Genetics sector and these stocks are the most undervalued as of today. GENVEC INC (NASDAQ:GNVC), GENMAB A/S (OTC:GNMSF), GILEAD SCIENCES INC (NASDAQ:GILD), GERON CORP (NASDAQ:GERN), AMICUS THERAPEUTICS INC (NASDAQ:FOLD), EXELIXIS INC (NASDAQ:EXEL) are all expected to go Up as they are undervalued according to industry standard valuation metrics. The valuation model employs a three-factor approach to stock valuation using fundamental variables--the company's trailing 12-month Earnings-Per-Share (EPS), the analyst consensus estimate of the company's forecasted 12-month EPS, and the 30-year Treasury yield--to create a highly accurate reflection of a company's fair value.

The chart below displays the projected Fair Value and Valuation discount/premium of the most undervalued stocks in the highlighted industry group:

     Symbol     Company Name                        Last Close     Fair Value     Valuation                   Industry               
     GNVC       GENVEC INC                          0.61           1.46           58.19% undervalued          Biomed - Genetics      
     GNMSF      GENMAB A/S                          11.35          22.94          50.53% undervalued          Biomed - Genetics      
     GILD       GILEAD SCIENCES INC                 38.16          43.1           11.46% undervalued          Biomed - Genetics      
     GERN       GERON CORP                          4.8875         6.01           18.62% undervalued          Biomed - Genetics      
     FOLD       AMICUS THERAPEUTICS INC             6.08           7.28           16.48% undervalued          Biomed - Genetics      
     EXEL       EXELIXIS INC                        7.93           8.87           10.60% undervalued          Biomed - Genetics      

Here are some of the variables that are utilized when calculating the Fair Market Valuation of a stock: Long-run EPS growth rate, Duration of Business-growth-cycle, Volatility of EPS growth rate, Systematic or beta risk of the firm, Correlation between the firm's EPS and the interest rate environment, EPS growth volatility, Dividend payout ratio, Buffer earnings, Interest rate related criteria: Interest rate (30 year yield) long-run level, Duration of interest rate cycle, Interest rate volatility. The Fair Market Valuation uses 12-month historic and forecasted EPS values and the current 30-year treasury yield as primary determinants. When calculating risk/return values such as the Sharpe ratio, the historic periods used are five years.

Some expected results of the Valuation Model are: the valuation of a stock increases in a declining interest rate environment. Increasing current and/or projected EPS will produce a higher Valuation. While long-term EPS growth would produce a corresponding long-term Valuation increase, concomitant long-term interest rate increases would offset EPS growth and depress the Valuation. The shorter a company's own business cycle, the higher its stock Valuation will be.

GENVEC INC (NASDAQ:GNVC) - GenVec, Inc., a clinical stage biopharmaceutical company, develops gene-based therapeutic drugs and vaccines in the United States. Its lead therapeutic product candidate, TNFerade biologic, is under Phase III clinical trial for the treatment of inoperable, locally advanced pancreatic cancer. The company is also evaluating TNFerade biologic for the treatment of various cancers, including esophageal cancer, head and neck cancer, rectal cancer, and soft tissue sarcomas. In addition, its hearing and balance disorders program investigates delivery of the atonal gene in the inner ear. Further, GenVec uses its proprietary adenovector technology to develop vaccines for infectious diseases, including HIV, malaria, foot-and-mouth disease, respiratory syncytial virus, and herpes simplex virus type 2. The company has a research collaboration and licensing agreement with Novartis Institutes for BioMedical Research, Inc. to discover and develop treatments for hearing loss and balance disorders. It also has strategic alliances and research contracts with the U.S. department of homeland security, the U.S. department of agriculture, PATHS malaria vaccine initiative, the U.S. Naval Medical Research Center, and the Vaccine Research Center of the National Institute of Allergy and Infectious Diseases of the National Institutes of Health. The company was founded in 1992 and is based in Gaithersburg, Maryland.

GENMAB A/S (OTC:GNMSF) - Genmab A/S, a biotechnology company, engages in the development of human antibody therapeutics for the potential treatment of cancer. The companys product pipeline includes Ofatumumab, a human monoclonal antibody for the treatment of in development for Chronic lymphocytic leukemia, non-Hodgkins lymphoma, diffuse large B-cell lymphoma, Waldenstroms macroglobulinemia, rheumatoid arthritis, and relapsing remitting multiple sclerosis; Zalutumumab, which is in Phase III clinical trials and targets the epidermal growth factor receptor; and Daratumumab, a human antibody to target the CD38 molecule expressed on the surface of multiple myeloma tumor cells. Its other clinical programs comprise RG4930 that is in Phase II development for asthma targeting OX40L; and RG1512 targeting P-selectin, which is in Phase I development stage for treatment of peripheral vascular diseases. In addition, the companys pre-clinical products comprise HuMax-CD32b, HuMax-TF, HuMax-VEGF, HuMax-Her2, and HuMax-Wnt for the treatment of cancer. It has collaboration agreements with Glaxo-SmithKline to co-develop and commercialize ofatumumab; and Roche to conduct clinical studies with RG4930 and RG1512 antibodies. The company was founded in 1999 and is based in Copenhagen, Denmark.

GILEAD SCIENCES INC (NASDAQ:GILD) - Gilead Sciences, Inc., a biopharmaceutical company, engages in the discovery, development, and commercialization of therapeutics for the treatment of life threatening diseases worldwide. Its products include Truvada, Atripla, Viread, and Emtriva for the treatment of human immunodeficiency virus infection in adults; Hepsera, an oral formulation for the treatment of chronic hepatitis B; AmBisome, a amphotericin B liposome injection to treat serious invasive fungal infections; Letairis, an endothelin receptor antagonist for the treatment of pulmonary arterial hypertension; Ranexa that is used for the treatment of chronic angina; Vistide, an antiviral medication that targets cytomegalovirus retinitis in patients with AIDS; and Cayston, an inhaled antibiotic used as a treatment to enhance respiratory systems. The companys products also comprise Tamiflu, an oral antiviral for the treatment and prevention of influenza A and B; Macugen, an intravitreal injection for the treatment of neovascular age-related macular degeneration; and Lexiscan, an injection used as a pharmacologic stress agent in radionuclide myocardial perfusion imaging. Gilead Sciences products under the Phase III clinical trials consist of Ambrisentan, an oral endothelin receptor antagonist for the treatment of idiopathic pulmonary fibrosis and pulmonary hypertension; Elvitegravir, an oral integrase inhibitor being evaluated as part of combination therapy for HIV; and combination of tenofovir disoproxil fumarate, emtricitabine, and TMC278 for the treatment of HIV/AIDS in treatment-naive patients. The companys Phase II clinical trials products comprise Aztreonam, Cicletanine, Cobicistat, combination of elvitegravir, cobicistat, and Truvada, GS 9190, GS 9310/11, and GS 9450, as well as Ranolazine that is preparing for Phase II clinical trials. Its Phase I clinical trials products include GS 6201, GS 9256, GS 9411, and GS 9667. The company was founded in 1987 and is headquartered in Foster City, California.

GERON CORP (NASDAQ:GERN) - Geron Corporation, a biopharmaceutical company, develops biopharmaceuticals for the treatment of cancer and chronic degenerative diseases, including spinal cord injury, heart failure, and diabetes. It develops a range of anti-cancer therapies based on telomerase inhibitors and telomerase therapeutic vaccines; and diagnostics based on telomerase detection, as well as intends to develop products using telomerase as a marker for cancer diagnosis, prognosis, patient monitoring, and screening. The company develops Imetelstat (GRN163L), which is in Phase I clinical trial for the treatment of chronic lymphoproliferative diseases, solid tumors, multiple myeloma, and non-small cell lung cancer. GRN163L is also in Phase I/II clinical trial to treat breast cancer. The company also develops GRNVAC1 that is in Phase II clinical trial for the treatment of acute myelogenous leukemia. It also develops GRNOPC1, which is in Phase I Trial for treatment of spinal cord injury; and GRNCM1 that is in preclinical stage to treat heart disease and screening. The company has licensing agreement with Merck & Co. to develop telomerase cancer vaccine, which is in Phase I clinical trial for the treatment of prostate and solid tumors; and Sienna Cancer Diagnostics to develop a preclinical stage product for the treatment of bladder cancer. Geron Corporation was founded in 1990 and is based in Menlo Park, California.

AMICUS THERAPEUTICS INC (NASDAQ:FOLD) - Amicus Therapeutics Inc., a biopharmaceutical company, focuses on the discovery, development, and commercialization of orally-administered, small molecule drugs for the treatment of various human genetic diseases. Its drugs are known as pharmacological chaperones, which selectively bind to the target protein, increase the stability of the protein, help it fold into the three-dimensional shape, and allow proper trafficking of the protein, thereby increasing protein activity, enhance cellular function, and reduce cell stress. The company primarily focuses on lysosomal storage disorders and diseases of neurodegeneration. Its lead product candidate includes Amigal, which is in Phase III development for the treatment of Fabry disease. The company also develops AT2220, which is in Phase I testing for the treatment of Pompe disease. In addition, it develops Plicera for the treatment of Gaucher disease. The company was founded in 2002 and is based in Cranbury, New Jersey.

EXELIXIS INC (NASDAQ:EXEL) - Exelixis, Inc. engages in the discovery, development, and commercialization of small molecule drugs for the treatment of cancer, metabolic, and cardiovascular disorders. The company's compounds primarily target multiple receptor tyrosine kinases simultaneously. Its product candidates include XL184, a Phase 3 clinical trial compound that inhibits MET, RET, and VEGFR2, which drive tumor growth and vascularization, as well as Phase 1b/2 clinical trials compounds, including XL147 that targets phosphoinositide-3 kinase (PI3K); and XL765, which targets PI3K and mTOR, kinases in the PI3K signaling pathway. The company also has various compounds in phase 1 clinical trials, including XL518, a small molecule inhibitor of the MEK; XL228, which targets insulin-like growth factor type 1 receptor, an RTK in a range of human tumors; XL139 that targets Hedgehog; XL413, a small molecule inhibitor of the serine-threonine kinase CDC7; and XL888, a synthetic inhibitor of HSP90, a chaperone protein that promotes the activity and stability of a range of regulatory proteins, including kinases. In addition, its preclinical and clinical development stage products that are out-licensed to third parties for the development and commercialization include XL880, a phase 2 inhibitor of MET and VEGFR2; XL281, a phase 1 product that targets RAF, a cytoplasmic serine/threonine kinase; XL652 and XL041, a phase 1 product for liver X receptors, which modulate genes involved in regulation of lipid and cholesterol homeostasis; XL550, a non-steroidal mineralocorticoid receptor; and FXR Program that targets Farnesoid X Receptor, a bile acid receptor. Exelixis, Inc. has collaborations with Bristol-Myers Squibb Company; Genentech, Inc.; GlaxoSmithKline; Pfizer; and Daiichi Sankyo Company Limited. The company was formerly known as Exelixis Pharmaceuticals, Inc. and changed its name to Exelixis, Inc. in February 2000. Exelixis, Inc. was founded in 1994 and is headquartered in South San Francisco, California.

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