Diamonds and Dogs
June 18th, 2014Insmed Incorporated (INSM)
The diamond for June 18th is the biopharmaceutical company, Insmed Incorporated. The company was granted the Breakthrough Therapy Designation, meaning the FDA is willing to expedite the development and review of the drug. Arikayce, the treatment drug for adults with nontuberculous mycobacterial (NTM) that received the grant, had positive Phase II clinical trial results. NTM is a disease in extreme need of treatment, which may be part of the reason why the FDA is looking to push the drug through to approval. Insmed's stock price soared 47% up to $17.50, which contrasted the downward movement of the stock price a few months prior to the grant. Now, the company has price targets ranging from $30 to $50, making this security one to watch.
Endocyte, Inc. (ECYT)
Biopharmaceutical companies, notorious for their volatility, are in focus today as our dog is Endocyte, Inc. On Tuesday afternoon, the company announced that Merck & Co. would no longer contribute to the development of the ovarian cancer drug, vintafolide. Now, the company has regained worldwide rights to their drug and plan on evaluating it "for future development opportunities." On May 2nd, the drug failed Phase III studies, and the stock price fell about 60%. After plummeting 25% after hours on Tuesday afternoon, the company's stock price ended in the red by about 14% to about $6.50. Without the funding from Merck & Co., many investors are left wondering about the other early development drugs that are being funded by this company and the future of this stock.