DYAX Corp. added to STI Medical Profits Portfolio
[from the Portfolio Update in today’s issue of Smart Tech Investor]
I am adding Dyax Corp. (DYAX) to the STI Medical Profits Portfolio because it is very close to having a real shot for FDA approval for a drug (DX-2390) that treats Hereditary Angioedema, a genetic disorder that occurs in 1 in 10-50,000 people. DX-2930 is a monoclonal antibody that blocks kallikrein, a key substance in the chemical reaction in the body that leads to the swelling of tissues in the body in response to antigens. DYAX, although having solid fundamentals for its stage of development as a company, is a high risk stock due to its dependence on niche drugs and potential FDA approval issues. But it does meet the characteristics of a good EBIS stock, especially since it has lots of cash on its balance sheet and good management. There is no guarantee that DX-2390 will be approved for any condition, or that it will sell well in the current and likely future environment of cost cuts in global health care. Yet, the company’s cash hoard and the fact that it’s signed on with Rentschler and moving on to Phase 3 with DX-2390 for HAE are encouraging at this point and make for a good very speculative pick.
Buy Dyax Corp. up to $28, with a Stop price of $21.
I am adding Dyax Corp. (DYAX) to the STI Medical Profits Portfolio because it is very close to having a real shot for FDA approval for a drug (DX-2390) that treats Hereditary Angioedema, a genetic disorder that occurs in 1 in 10-50,000 people. DX-2930 is a monoclonal antibody that blocks kallikrein, a key substance in the chemical reaction in the body that leads to the swelling of tissues in the body in response to antigens. DYAX, although having solid fundamentals for its stage of development as a company, is a high risk stock due to its dependence on niche drugs and potential FDA approval issues. But it does meet the characteristics of a good EBIS stock, especially since it has lots of cash on its balance sheet and good management. There is no guarantee that DX-2390 will be approved for any condition, or that it will sell well in the current and likely future environment of cost cuts in global health care. Yet, the company’s cash hoard and the fact that it’s signed on with Rentschler and moving on to Phase 3 with DX-2390 for HAE are encouraging at this point and make for a good very speculative pick.
Buy Dyax Corp. up to $28, with a Stop price of $21.
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