Joe I just threw up in my mouth this morning... this sucks... I'm pissed off.
I guess it goes back to the title of this post... great re-entry point :ughhh:
Everyone on the yahoo board is saying the trial that they got poor results on was a weak one and the market is over reacting to this.
WHo the hell decided ok bad results ....um lets bring this stock down 60% ... I hate the street sometimes.
Their glumetza scripts are ramping out, they just got the proquin rights back, waiting on the settlemtn lawsuit and still have GABA for menopauses and GERD... still alot of upside but this is rediculous and very upsetting.:nopityA:
I guess it goes back to the title of this post... great re-entry point :ughhh:
Everyone on the yahoo board is saying the trial that they got poor results on was a weak one and the market is over reacting to this.
WHo the hell decided ok bad results ....um lets bring this stock down 60% ... I hate the street sometimes.
Their glumetza scripts are ramping out, they just got the proquin rights back, waiting on the settlemtn lawsuit and still have GABA for menopauses and GERD... still alot of upside but this is rediculous and very upsetting.:nopityA:
Tough break on this one...
Depomed Drops As Test Results Disappoint
Associated Press 07.10.07, 12:49 PM ET
Depomed Inc. shares lost more than half their value Tuesday morning after the specialty drugmaker reported disappointing results in a late-stage clinical trial of its key drug candidate.
The pill, Gabapentin GR, failed to significantly reduce pain when compared with placebo in patients with postherpetic neuralgia, a persistent pain condition caused by nerve damage after a shingles infection.
The drug is an extended-release version of gabapentin, which is already approved by the Food and Drug Administration to treat PHN. Depomed is testing the extended-release drug as a treatment for diabetic peripheral neuropathy and other conditions.
The Phase III trial results prompted at least three analysts to cut their ratings and remove their price targets on the Menlo Park, Calif.-based company.
"Until we gain further visibility on the future of the Gabapentin development program, we advise that investors stay on the sidelines," wrote Thomas Weisel analyst Donald Ellis in a note to clients Tuesday morning.
Ellis lowered his rating to "Market Weight" from "Overweight" and suspended his price target.
Shares of Depomed plummeted in morning trading, falling $2.83, or 57 percent, to $2.10 at midday. Earlier in the session, the stock traded as low as $1.83, its lowest point in more than four years.
CIBC World Markets analyst Elliot Wilbur cut his rating to "Sector Performer" from "Sector Outperformer."
"These results were unexpected, given the low risk associated with new formulation and the encouraging Phase II results," Wilbur wrote. The analyst estimates that the opportunity from gabapentin accounts for about two-thirds of Depomed's valuation.
Oppenheimer & Co. analyst Scott Henry had a similar assessment of the company.
"Gabapentin GR was $6 of our $9 price target and the primary reason to own Depomed," he wrote.
Henry lowered his outlook to "Neutral" from "Buy."
Depomed Drops As Test Results Disappoint
Associated Press 07.10.07, 12:49 PM ET
Depomed Inc. shares lost more than half their value Tuesday morning after the specialty drugmaker reported disappointing results in a late-stage clinical trial of its key drug candidate.
The pill, Gabapentin GR, failed to significantly reduce pain when compared with placebo in patients with postherpetic neuralgia, a persistent pain condition caused by nerve damage after a shingles infection.
The drug is an extended-release version of gabapentin, which is already approved by the Food and Drug Administration to treat PHN. Depomed is testing the extended-release drug as a treatment for diabetic peripheral neuropathy and other conditions.
The Phase III trial results prompted at least three analysts to cut their ratings and remove their price targets on the Menlo Park, Calif.-based company.
"Until we gain further visibility on the future of the Gabapentin development program, we advise that investors stay on the sidelines," wrote Thomas Weisel analyst Donald Ellis in a note to clients Tuesday morning.
Ellis lowered his rating to "Market Weight" from "Overweight" and suspended his price target.
Shares of Depomed plummeted in morning trading, falling $2.83, or 57 percent, to $2.10 at midday. Earlier in the session, the stock traded as low as $1.83, its lowest point in more than four years.
CIBC World Markets analyst Elliot Wilbur cut his rating to "Sector Performer" from "Sector Outperformer."
"These results were unexpected, given the low risk associated with new formulation and the encouraging Phase II results," Wilbur wrote. The analyst estimates that the opportunity from gabapentin accounts for about two-thirds of Depomed's valuation.
Oppenheimer & Co. analyst Scott Henry had a similar assessment of the company.
"Gabapentin GR was $6 of our $9 price target and the primary reason to own Depomed," he wrote.
Henry lowered his outlook to "Neutral" from "Buy."
Very nice trade and yes.. no profit is a bad profit. I am in for the long hall as this entire thread shows. Yes ut has been a rollar coaster ride thats for sure.
The huge drop a few days ago was great for my average cost as I nearly doubled down on my holdings and am excited for the climb back up to where the stock pps should be.
For anyone that has the stomach for rollar coaster bio techs like this and goes long well here is a little analysis of the company and an estimate of what the PPS is potentially worth from this point forward. This was taken form a long shareholder on yahoo that has provided a wealth of information over the last 3 years that I have been in on this company.
67 million in cash (after recognizing dilution, proquin payment, etc)
Thats 1.25/share
Glumetza=20million/year (5x current sales) = 100 million
or
M&A - Glumetza peak est. is 50 million/yr (3x Peak sales) = 150 million.
Glumetza AVG = 125 million value
ProQuin=7million/year (5x current sales) = 35 million
or
M&A - ProQuin peak est is 15 million (3x peak sales) = 45 million
ProQuin AVG = 40 million value
Cash = 60 million
ProQuin = 40 million
Glumetza = 125 million
-----------------------
225 million or 5 dollars/share
(does not even factor in the cash that will be obtained from the lawsuit against ivax)
I'll stick to my assertion but this stock at these levels is still a winner in my books!
Good Luck to all Longs or day traders :aktion033 , remember to do your own DD on this!
