Some biotech and pharma companies were on the move Tuesday. A few of the smaller caps made tremendous gains on the day, as the fourth-quarter earnings season is kicking off. Although some of these companies may not be the largest in the sector, they still posted the largest gains or losses on the day.
These companies 24/7 Wall St. has picked stood out from the rest on Wednesday morning. We have included information about each company, as well as recent trading activity and the consensus price target.
Benitec Biopharma Ltd. (BNTC) reported that the European Medicines Agency (EMA) Committee for Orphan Medicinal Products, granted Orphan Drug Designation to BB-301 as an orphan medicinal product for the treatment of patients with oculopharyngeal muscular dystrophy.
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In addition to a 10-year period of marketing exclusivity in the European Union after product approval, the orphan drug designation provides incentives for companies seeking protocol assistance from the EMA during the product development phase and direct access to the centralised authorisation procedure.
Shares of Benitec were trading up 66% at $3.07 on Tuesday, with a consensus price target of $14.00 and a 52-week trading range of $1.30 to $4.40.
Early on Tuesday, Biogen Inc. (BIIB) announced that it had entered into an agreement to pay $1.25 billion in cash to license all the intellectual property of Forward Pharma A/S (FWP). Currently these two companies are embattled in a patent dispute over their rival drugs for multiple sclerosis, and this license agreement is expected to clarify and strengthen Biogen’s intellectual property for Tecfidera.
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It is worth noting that this agreement does not resolve the current patent dispute. However a decision is expected later this year.
Biogen shares were trading at $285.51, within a 52-week range of $223.02 to $333.65 and a consensus price target of $341.12.
Shares of Forward Pharma were up 56% at $28.66. The consensus price target is $40.75, and the 52-week range is $11.22 to $30.00.
Shares of Alcobra Ltd. (ADHD) got halved on Tuesday after the company reported late stage results for its attention deficit/hyperactivity disorder (ADHD). Unfortunately, the results did not live up to expectations. Metadoxine extended release did not meet the primary endpoint of demonstrating a statistically significant difference from placebo in the change from baseline of the investigator rating of the Conners’ Adult ADHD Rating Scales.
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Dr. Yaron Daniely, president and CEO of Alcobra, commented:
We are exceedingly disappointed with these top-line results. In the coming weeks, the Company intends to review the full data set from MEASURE. Consequently, we will evaluate our options and communicate our strategic plan to investors. We wish to reiterate our sincere appreciation to all of the patients, investigators, and others who aided us in conducting this study.
Alcobra was last seen down 51% to $0.93. The consensus price target is $5.17, and the 52-week range is $0.83 to $5.75.