BPAX =This week’s Pick. Check Out This FDA Play with two major catalyst in early 2011. www.ivyleagueotc.com
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ACAD yesterday before the open and were able to net a quick 7-8% in profits within the first 30 minutes of trading.
Profiting so early in the morning allows one to use the rest of the day to research new picks and our researchers did just that and found BioSante Pharmaceuticals (NASDAQ:BPAX). While BPAX doesn`t hold as much potential for maximum gains as next week`s .05 penny play, after looking at the chart and researching the news BPAX looks like a serious contender to produce 20%+ gains for this week.
What makes BPAX so promising is that is has two major catalyst in store for early 2011.
1.In the coming weeks they begin phase 2 study at Johns Hopkins cancer center for GVAX (therapeutic cancer vaccine) 2.They are expected to release phase 3 results early in 2011 for their flagship product, LibiGel to support an NDA filing.LibiGel is a female sexual health drug that can produce effects in women similar to what Viagra does for men. Viagra like products for men are a 2 billion dollar industry in America alone, and analyst are saying that the target market for women is between 3-4 billion Treatment with LibiGel in BioSante`s Phase II clinical trial significantly increased satisfying sexual events in surgically menopausal women suffering from FSD. The Phase II trial results showed LibiGel significantly increased the number of satisfying sexual events by 238% versus baseline (p<0.0001); this increase also was significant versus placebo (p<0.05). In this study, the effective dose of LibiGel produced testosterone blood levels within the normal range for pre-menopausal women and had a safety profile similar to that observed in the placebo group. In addition, no serious adverse events and no discontinuations due to adverse events occurred in any subject receiving LibiGel. The Phase II clinical trial was a double-blind, placebo-controlled trial, conducted in the United States, in surgically menopausal women distressed by their low sexual desire and activity.
There still is no FDA approved pharmaceutical product for the treatment of HSDD and it is clear from the extensive off-label use of testosterone products for HSDD, that women need an approved therapy. We believe LibiGel can be the first product to market for this unmet medical need,” said Dr. Snabes, MD, PhD, BioSante`s vice president of clinical development.
Looking at the chart above we can see that BPAX has been on fire as 2011 draws nearer and recently exploded giving us a unique trading opportunity.
At the end of yesterdays close BPAX announced plans to sell 10.6 million common shares and warrants to institutional investors at the price of 1.70 which caused a drop from 2.00 to 1.73 in after market trading. The five-year warrants included in the offering, which is expected to close on Dec. 30, will be exercisable immediately at $2 per share.
What this means is that Institutional investors have just created a new base of support at 1.70 their purchase price, yet they can`t sell a single share until 2.00. It also means that they won`t necessarily sell directly at 2.00 because of the future catalysts in store that have the potential to propel the stock towards its 52 week high of 2.50. Since the shares have been sold to institutional investor sits also important to note that the float has not changed at all.
With a close of 1.73 and a very bullish daily chart we think that the risk reward ratio for BPAX looks perfect and will be picking up shares 5 minutes after today`s open with a 1.70 stop loss and a target of 2.00+. As always use proper trade management.
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