Dynavax Technologies (DVAX) shares tumbled on Friday amid confusion over the company’s Ad Comm date for its lead vaccine candidate HEPLISAV-B. The FDA has cancelled the November Ad Comm as it needs more time to review and resolve several outstanding issues. I believe the sell-off on Friday was bit of an overreaction and DVAX should bounce back this week. Following the sell-off on Friday, nearly a third of DVAX’s value is now in cash. I believe long-term investors should use this opportunity to bring down their average cost of acquisition in DVAX. In fact, we did see some heavy buying late on Friday after DVAX plunged around 30%. My bullish case on DVAX remains intact and I am maintaining the price target on the stock.

Mast Therapeutics (MSTX) shares rallied on Friday even as there is no update on the Phase 3 clinical trial EPIC. The trial is evaluating MSTX’s lead product candidate vepoloxamer for the treatment of patients with sickle cell disease (SCD) experiencing vast-occlusive crisis. Currently, there are no treatment options for sickle cell disease. It must be noted that MSTX is developing a treatment for the disease itself but for sickle cell crisis. However, the opportunity even in this area is significant as I had noted last year when I initiated coverage on MSTX. The bullish thesis for MSTX last year was based on the fact that the design of the Phase 3 study EPIC raised the possibility of MSTX succeeding. However, MSTX has disappointed this year. First the company surprised the market with a secondary offering earlier in the year. The announcement of the secondary offering pushed MSTX shares sharply lower. Then the company suffered another setback as it delayed the data from the Phase 3 study. MSTX had initially said that the data would be released in the first quarter itself. We are now in final month of the third quarter and MSTX is yet to provide any upside on the data. I continue to remain on the sidelines with MSTX, given the delay in EPIC trial data.

Merck Terminates Development of Odanacatib- Merck & Co. (MRK) announced that it is terminating the development of its vosteoporosis candidate odanacatib due to an unacceptable safety profile, specifically an increased risk of stroke. The drug was found to be effective in reducing vertebral fractures in a  Phase 3 study. MRK though has decided to shelve the study following the findings from an independent analysis of the cardiovascular events. The company originally planned to file an NDA in the U.S. in 2015 despite the safety issues. Odanacatib was expected to be a blockbuster drug by 2020.

ChemoCentryx Announces Encouraging Data from Early-Stage Study of CCX872- ChemoCentryx (CCXI) announced preliminary results from a Phase 1b clinical trial assessing CCX872 in 50 pancreatic cancer patients. The ongoing study aims to evaluate the safety and effects of orally administered CCX872 when added to the chemo regimen FOLFIRINOX (5-fluorouracil, leucovorin, irinotecan and oxaliplatin) in patients with advanced non-resectable pancreatic cancer over a treatment period of 12 weeks. CCX872 was well-tolerated and demonstrated a safety profile consistent with FOLFIRINOX alone.

No approvals to report.

No patents to report.

No deals and collaborations to report.

No secondary offerings to report.

No IPOs to report.

Nexvet (NXVT) reported a loss of $1.68 per share in its fiscal year 2016.

Midatech Pharma (MTP) reported earnings of GBP 0.25 per share in its first half. The company’s revenue for the first half was GBP 3.8 million, up 1087.5% on a year-over-year basis.

Company (Ticker) Brokerage Action Recommendation Price Target My Price Target
AbbVie (ABBV) Credit Suisse Group Initiation Outperform N/A

$80

Dynavax Technologies (DVAX) S&P Equity Research Price Target Raised N/A From $11.28 to $16.01

$50

Teva Pharmaceutical Industries Ltd. (TEVA) Oppenheimer Holdings Upgrade From Market Perform to Outperform

$66

N/A

No insider buys to report.

Nektar Therapeutics (NKTR)- Howard W. Robin, President & CEO, sold 87,500 shares at $17.83. The total value of the transaction was approximately $1.56 million. Robin still owns 128,886 shares of NKTR.

Amphastar Pharmaceuticals (AMPH)- Howard Lee, Director, sold 10,381 shares at $18.78. The total value of the transaction was $194,917. Lee still owns 114,527 shares of AMPH.

Kite Pharma (KITE)- Jeffrey Wiezorek, SVP Clinical Development, sold 1,500 shares at $58.24. The total value of the transaction was $87,362. Wiezorek still owns 15,811 shares of KITE.

Five Prime Therapeutics (FPRX)- William R. Ringo, Director, sold 500 shares at $44.20. The total value of the transaction was $22,100. Ringo does not own any shares of FPRX.

The Medicines Company (MDCO)- Clive Meanwell, CEO, sold 1,377 shares at $40. The total value of the transaction was $55,080. Meanwell still owns 339,168 shares of MDCO.

Alexion Pharmaceuticals (ALXN)- Julie O’Neill, EVP, Global Operations, sold 650 shares at $126.29. The total value of the transaction was $82,089. O’Neill still owns 35,384 shares of ALXN.

Exelixis (EXEL)- Gisela Schwab, President Product Development & Medical Affairs & CMO, sold 131,155 shares at $10.98. The total value of the transaction was approximately $1.44 million. Schwab still owns 136,441 shares of EXEL.

Cipher Pharmaceuticals (CPHR) announced the appointment of Stephen Lemieux, CPA as Chief Financial Officer and Secretary effective September 12 succeeding the retiring Norman Evans. Previously, Mr. Lemieux was VP and CFO at Nuvo Pharmaceuticals.

Aldeyra Therapeutics (ALDX) announced that its COO Scott Young resigned effective August 30 by mutual agreement. The specific reasons for the move are not provided.

NYSE- Lannett Company (LCI) shares were among the major movers on the NYSE. The stock closed 4.73% lower. Mallinckrodt (MNK) ended the day 4.19% lower.

NASDAQ- Ocera Therapeutics (OCRX) shares were among the major gainers on Friday. The stock closed 11.22% higher. Aeglea BioTherapeutics (AGLE) ended the day 8.04% higher. WAVE Life Sciences (WVE) ended the day 7.35% higher. ChemoCentryx (CCXI) shares were among the major losers on the NASDAQ. The stock closed 20.23% lower. Nexvet Biopharma (NVET) ended the day 10.67% lower. Tonix Pharmaceuticals Holding (TNXP) ended the day 7.63% lower.

NYSEMKT- Asterias Biotherapeutics (AST) shares were among the major gainers on the NYSEMKT. The stock closed 4.61% higher.

OTC- Amarantus Bioscience Holdings (AMBS) shares were among the major movers on the OTC market. The stock closed 2.70% higher.

Company (Ticker) Short Interest as a % of Float % Change Days to Cover
Aclaris Therapeutics (ACRS)

5.7%

8.7%

16

Acorda Therapeutics (ACOR)

12.7%

-3%

12

Acura Pharmaceuticals (ACUR)

0.6%

-34%

2

Adamas Pharmaceuticals (ADMS)

18.5%

28.6%

16

Aduro Biotech (ADRO)

24.9%

-3%

15

Advaxis (ADXS)

32.6%

18.8%

3

Adverum Biotechnologies (ADVM)

2.9%

10.6%

2

Aegerion Pharmaceuticals (AEGR)

9.1%

-12.6%

15

Aeglea Pharmaceuticals (AGLE)

0.5%

8.4%

5

Aerie Pharmaceuticals (AERI)

21.4%

-16.9%

10