Stocks With More Upside: Plasmatech Biopharmaceuticals Inc (PTBI) and Progenics Pharmaceuticals Inc. (PGNX)
New York, NY – GDP INSIDER – 05/07/2014.
This article discusses two companies: Plasmatech Biopharmaceuticals Inc (NASDAQ:PTBI) and Progenics Pharmaceuticals, Inc. (NASDAQ:PGNX)
Plasmatech Biopharmaceuticals Inc (NASDAQ:PTBI) had a huge day in Wednesday’s trading session, increasing to $8.60 per share, a move of 44%. The company announced a $10 million private placement investment at a price of $8 per share. It will also issue warrants to purchase 625,000 shares of common stock at an exercise price of $10 per share exercisable 30 months from the closing date. The company also announced the acquisition of Abeona Therapeutics for 3.98 million shares and an additional $9 million if it meets certain performance milestones. The combined company will be a world class cell and gene therapy company with a focus on rare diseases. Abeona brings its programs in MPS IIIB and IIIA that address unmet medical needs and provide breakthrough technologies. As part of the deal, Tim Miller, Ph.D. and CEO of Abeona will take over for Scott Schorer, CEO of PlasmaTech. The new company will have a more robust pipeline of treatments for rare diseases. The synergies and risk reduction generate additional value for shareholders.
Progenics Pharmaceuticals, Inc. (NASDAQ:PGNX) shares were up in trading yesterday by 10.2% to $5.53. The company reported its 1Q 2015 earnings before market open. It beat analysts’ EPS forecast by $0.01 but missed revenue expectations. The Tarrytown, NY based company reported a $10.3 million loss, or $0.15 per share. The shares are down by 34% year-to-day but are up over 35% in the past year. This quarter could mark the turnaround for the stock. The 52-week range is $3.10 to $7.84. The technical indicators are not pointing to move in the stock one way or the other. The company has products across the early to late stage phases of the pipeline. Investors gain exposure and mitigate some risk given this profile. PGNX has a $1+ billion opportunity with its oral Relistor treatment that could move forward quickly. It also has potential for a partnership with PSMA-ADC benefitting the company and its shareholders.
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