NSPH, QGEN, PPHM, PGNX, PDLI, OXGN, Biomed - Genetics Stocks 22.88% undervalued
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. NANOSPHERE INC (NASDAQ:NSPH), QIAGEN N.V. (NASDAQ:QGEN), PEREGRINE PHARMACEUTICALS (NASDAQ:PPHM), PROGENICS PHARMACEUTICALS (NASDAQ:PGNX), PDL BIOPHARMA INC (NASDAQ:PDLI), OXIGENE INC (NASDAQ:OXGN) 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 NSPH NANOSPHERE INC 3.84 4.98 22.88% undervalued Biomed - Genetics QGEN QIAGEN N.V. 18.77 19.16 2.03% undervalued Biomed - Genetics PPHM PEREGRINE PHARMACEUTICALS 2.44 7.23 66.26% undervalued Biomed - Genetics PGNX PROGENICS PHARMACEUTICALS 6.04 15.46 60.92% undervalued Biomed - Genetics PDLI PDL BIOPHARMA INC 4.84 13.79 64.91% undervalued Biomed - Genetics OXGN OXIGENE INC 0.1961 1.57 87.50% 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.
NANOSPHERE INC (NASDAQ:NSPH) - Nanosphere, Inc. develops, manufactures, and markets a molecular diagnostics platform, the Verigene System that enables genomic and protein testing on a single platform. Its proprietary nanoparticle technology provides the ability to run multiple tests simultaneously on the same sample, as well as simplifies molecular diagnostic testing. The company develops diagnostic tests for markers, which reveal the existence of various medical conditions, including cardiovascular, respiratory, cancer, autoimmune, neurodegenerative, and other infectious diseases, as well as for pharmacogenomics. It also engages in developing and commercializing genomic and protein assays, including hyper-coagulation, warfarin metabolism, cystic fibrosis, respiratory virus panel, hemochromatosis, blood infection panel, cardiac troponin I, connective tissue, prostate specific antigen, and biomarker validation. Nanosphere intends to market its solutions for applications in the hospital-based laboratories and academic research institutions in the United States. The company is headquartered in Northbrook, Illinois.
QIAGEN N.V. (NASDAQ:QGEN) - QIAGEN N.V., through its subsidiaries, provides sample and assay technologies. Sample technologies are used to isolate and process deoxyribonucleic acid, ribonucleic acid, and proteins from biological samples, such as blood or tissue; and assay technologies are used to make such isolated bio-molecules visible. It markets approximately 500 sample and assay products, as well as automated solutions for such consumables. The company provides its products to molecular diagnostics laboratories, academic researchers, pharmaceutical and biotechnology companies, and applied testing customers for purposes, such as forensics, animal or food testing, and pharmaceutical process control. QIAGEN's primary assay technologies include the broadest panels of molecular diagnostic tests available. This panel comprises the digene HPV Test, which is regarded as a gold standard in testing for high-risk types of human papillomavirus, the primary cause of cervical cancer, as well as a broad suite of solutions for infectious disease testing and companion diagnostics. The company markets its products through a sales force and a network of distributors principally in the Americas, Germany, Asia, and Switzerland. It has a collaboration agreement with Genome Diagnostics B.V. for development of tests for applications in prevention and personalized healthcare. QIAGEN was founded in 1986 and is headquartered in Venlo, the Netherlands.
PEREGRINE PHARMACEUTICALS (NASDAQ:PPHM) - PEREGRINE PHARMA
PROGENICS PHARMACEUTICALS (NASDAQ:PGNX) - Progenics Pharmaceuticals, Inc., a biopharmaceutical company, engages in the development and commercialization of therapeutic products to treat the unmet medical needs of patients with debilitating conditions and life-threatening diseases in the United States and internationally. The company offers RELISTOR-Subcutaneous injection for the treatment of opioid-induced constipation in advanced illness patients receiving palliative care. It is also conducting a Phase I clinical trial of a human monoclonal antibody-drug conjugate directed against prostate specific membrane antigen (PSMA), a protein found at high levels on the surface of prostate cancer cells, as well as in blood vessels supplying other solid tumors. In addition, the company is developing therapeutic vaccines designed to stimulate an immune response to PSMA; PRO 140, a viral-entry inhibitor for human immunodeficiency virus (HIV), which is in Phase II clinical testing; and novel multiplex PI3-Kinase inhibitors to combat aggressive forms of cancer. Additionally, it engages in researching a prophylactic vaccine for HIV infection; and candidates that are HCV-entry inhibitors. The company was founded in 1986 and is based in Tarrytown, New York.
PDL BIOPHARMA INC (NASDAQ:PDLI) - PDL BioPharma Inc., formerly Protein Design Labs, Inc., is a biopharmaceutical company focused on discovering, developing and commercializing therapies for severe or life threatening illnesses. The Company markets and sells products in the acute care hospital setting in the United States and Canada, and receives royalties through licensing agreements with a number of biotechnology and pharmaceutical companies based on its antibody humanization technology platform. The Company's product development pipeline includes six investigational compounds in Phase II or Phase III clinical development for hepatorenal syndrome, inflammation and autoimmune diseases, cardiovascular disorders and cancer. On March 23, 2005, the Company completed the acquisition of all of the outstanding stock of ESP Pharma Holding Company, Inc. (ESP Pharma), a privately held hospital-focused company. It also acquired from Centocor, Inc. (Centocor) the right to manufacture, develop, market and distribute Retavase in the United States and Canada during the year ended December 31, 2005.
Marketed Products
The Company's portfolio of actively marketed products consists of three biopharmaceutical products. Cardene IV is a branded, United States-approved dihydropyridine class calcium channel blocker delivered intravenously that is indicated for short-term treatment of hypertension when oral therapy is not feasible or desirable. Retavase is indicated for use in the management of heart attacks (acute myocardial infarction (AMI)) in adults for the improvement of ventricular function following AMI, the reduction of the incidence of congestive heart failure and the reduction of mortality associated with AMI. The Company re-launched Retavase in April 2005, after acquiring it in March 2005.
IV Busulfex, an IV formulation of busulfan, is a chemotherapeutic agent used as part of a conditioning regimen prior to allogeneic hematopoietic progenitor cell transplantation for chronic myelogenous leukemia. IV Busulfex provides anti-tumor effect to eradicate residual malignancy, ablation of the bone marrow to make space for the new source of stem cells and to provide immunosuppression to prevent graft rejection. IV Busulfex was launched in Europe by Pierre Fabre Medicament S.A. (Pierre Fabre) and in several Asian countries by Kirin Brewery Company, Limited (Kirin). Both Pierre Fabre and Kirin are the Company's distributors in their territories.
Products in Clinical Development
PDL BioPharma Inc. is engaged in the discovery and development of protein-based therapeutic products, with the majority of its emphasis based upon deriving humanized antibody product candidates employing its platform. The Company has six product candidates in clinical development for various disease indications. Four of these are antibodies and are in clinical development with a near-term emphasis on autoimmune and inflammatory diseases and cancer, specifically inflammatory bowel disease, asthma, multiple sclerosis (MS) and solid tumors. The remaining two product candidates, ularitide and terlipressin, were added to the portfolio through the Company's acquisition of ESP Pharma.
Terlipressin is a synthetic, 12-amino acid peptide (1-triglycyl-8-lysine-vasopressin) derived from the natural hormone lysine-vasopressin. Due to its constrictive activity on vascular and extra-vascular smooth muscle cells (V-1 agonist), it reduces blood flow in the splanchnic area, and thereby lowers portal blood pressure. Terlipressin is in Phase III clinical development for the treatment of type 1 hepatorenal syndrome.
Under an agreement with Orphan Therapeutics, PDL BioPharma Inc. holds marketing, sales and distribution rights for terlipressin in the United States and Canada. Orphan Therapeutics holds the investigational new drug (IND) application for terlipressin and is conducting the Phase III clinical trial in the United States and Europe. The ongoing clinical study, conducted by Orphan Therapeutics, is a double-blind, placebo-controlled Phase III trial of terlipressin in patients with type 1 hepatorenal
OXIGENE INC (NASDAQ:OXGN) - OXiGENE, Inc., a clinical-stage biopharmaceutical company, engages in developing therapeutics to treat cancer and eye diseases in the United States. It primarily focuses on the development of product candidates that disable and destroy abnormal blood vessels that provide solid tumors a means of growth and survival, as well as associate with visual impairment in various ophthalmological diseases and conditions. The companys products include ZYBRESTAT, which is in FALCON Trial - Phase II randomized controlled study for the treatment of 1st-line non-small cell lung cancer, as well as in Phase II Simon two-stage design study for the treatment of platinum-resistant ovarian cancer; and OXi4503 that is in Phase I dose-escalation study and Phase Ib dose-ranging study for the treatment of refractory solid tumors hepatic tumors. Its products also include ZYBRESTAT for ophthalmology, which is in phase II randomized, double-masked, placebo-controlled, and single-dose study for proof-of-mechanism study in polypoidal choroidal vasculopathy. OXiGENE has a strategic collaboration agreement with Symphony Capital Partners, L.P. to support the advancement of ZYBRESTAT for oncology and ophthalmology, and OXi4503. The company was founded in 1988 and is headquartered in South San Francisco, California.
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