Targeted Genetic and Cell Therapies Stand Out in Biotechnology: A Wall Street Transcript Interview with David Nierengarten, Ph.D., an Analyst at Wedbush Securities Covering the Biotechnology, Biopharmaceuticals and Biodefense Sector

Wall Street Transcript

67 WALL STREET, New York - May 1, 2014 - The Wall Street Transcript has just published its Biotechnology and Pharmaceuticals Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Health Care - Biotechnology and Pharmaceuticals - Orphan Drug and Biologics Manufacturing - Oncology Drug Development - Orphan Drugs - FDA Approval Process - Biotechnology and Pharmaceutical Companies Valuation - Genetic and Cell Therapies

Companies include: Celadon Group Inc. (CLDN), Novartis AG (NVS), Celgene Corporation (CELG), NPS Pharmaceuticals, Inc. (NPSP), Amgen Inc. (AMGN), Dendreon Corp. (DNDN), Infinity Pharmaceuticals, Inc. (INFI) and many others.

In the following excerpt from the Biotechnology and Pharmaceuticals Report, an expert analyst discusses the outlook for the sector for investors:

TWST: You mentioned that your coverage is largely focused on smaller caps. How have they performed in comparison to some of the big names that we hear more about stock-wise?

Dr. Nierengarten: I think the small caps in general are probably doing better. The large caps have had a great run, and it's kind of ironic, but the problem with these large caps is they are actually commercial companies with valuations that people can crunch the numbers on and do discounted cash flows. It's hard to see some of the large caps advancing much more than where they are, whereas the small caps have a lot of upside to them as risk gets removed from the equation, if they're successful in clinical trials. I think right now there's probably more potential in small-cap biotech than large cap.

TWST: Where are you pointing investors now? What are some of your favorite stories at the moment?

Dr. Nierengarten: I actually like one of the larger-cap commercial companies that I cover, NPS Pharmaceuticals (NPSP). It's in a good spot on the growth curve. I think the company will probably exceed management's guidance for Gattex revenues, and I think we'll see some surprise to the upside, perhaps tied to Natpara's approval and pricing later this year, likely in October.

Among the small caps, I find two names in hematology and heme/onc space interesting. One is Fate Therapeutics (FATE) and the other one is MEI Pharma (MEIP). Fate Therapeutics are working on PROHEMA, which is a formulation that improves or seems to improve outcomes in patients receiving umbilical cord transplants to treat hematological malignancies and potentially rare diseases. They're going to have interim data in the second half of the year, and there are a lot of reasons to believe it will be positive.

MEIP has a bunch of data coming from their compound, Pracinostat, late in the year, for AML and MDS patients. I think their drug has real potential to be a best-in-class HDAC inhibitor that makes a lot of sense to combine with the currently approved hypomethylating agents. Those are a couple that have this-year catalysts to move the stocks.

TWST: Anybody that really sticks out as you look out a little further?

Dr. Nierengarten: Speaking of gene therapy, two stocks in particular that will likely have major events in very late 2014 or early 2015...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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