Biodel Inc (NASDAQ:BIOD)’s BIOD-123 study nears completion
Biodel Inc (NASDAQ:BIOD) is at the fag-end of the mid-stage study of the company’s latest meal-time injectable insulin. Once again, this gives traders the opportunity to benefit from an extremely important event for BIOD. This is sort of like a replay of 2010 when market veterans had climbed onto the Biodel bandwagon. The price of the company stock had almost doubled. This continued right up to the point when Biodel was supposed to receive FDA approval for Linjeta, its injectable insulin product. The FDA eventually rejected Linjeta, and Biodel Inc (NASDAQ:BIOD) shares collapsed.
Back to work
The company gave up on the product, donned its lab coats once again, forgot the past and started developing a new meal-time insulin. BIOD-123 is the fruit of this labor. It is designed to move into the bloodstream faster and also has lesser injection site-reactions. The company believes that BIOD-123 will be able to effect comparable glycemic control but with a lower weight-gain as well as a lower possibility of hypoglycemia (low blood sugar), in comparison to the other mealtime insulin that are currently available in the market.
Second time lucky?
Biodel Inc (NASDAQ:BIOD) announced that patient enrolment for the BIOD-123 Phase-II study was closed on March 28 2013.The treatment period lasts 18 weeks. This means that the last patient will complete the study by the start of August. Taking 4-8 weeks for data-gathering as well as for analysis into account, the company should announce its study results in September. BIOD said that it hopes to announce top-line results in the Q3. Once again the market is craning its neck out and taking a peek at Biodel. Over the last two quarters, private and institutional ownership in BIOD has almost doubled. It now totals 75 percent of the company’s outstanding shares.
Beating the competition
Today, in comparison to MannKind’s almost $2 billion market-value, Biodel Inc (NASDAQ:BIOD)’s market-cap stands only at $52 million. This valuation gap is sure to narrow as the BIOD-123 study nears completion. That valuation gap should shrink as the BIOD-123 study nears completion. Even if a minuscule amount of market inflation and the hoopla that is currently benefiting MannKind seeps over to BIOD, the latter’s shares are sure to head upwards this summer. It goes without saying that run-up traders should be exiting their BIOD positions prior to September. This will avoid the risk of owning the company stock when the study results are released.