New Link Genetics: Looking To Join The Industry's Largest Movers :
Biotechnology has produced more 100% 52-week gains than any industry in the market. One of the reasons is because of the amount of data that has been presented in the last year from important late-stage studies. This has caused both a bull-run on biotech but has also left investors seeking the next big jump. As you look throughout the industry, many feel confident that New Link Genetics Corp (NLNK) could be the next to present good data, hence leading to large gains. Therefore, I am assessing its outlook as data for its lead product approaches. If we just look at the last year alone, there have been countless valuation-changing moves in biotechnology. Keryx Bio pharmaceuticals (KERX) saw a two-day period where its stock more than doubled after reporting Phase 3 data. Sarepta Therapeutics (SRPT) saw a one-day gain where its stock went from $15.00 to $45.00, and just recently Vertex Pharmaceuticals (VRTX) saw $7.2 billion added to its market capitalization following positive data. Each of these companies among many more saw these gains as the market adjusted each company's worth to data that suggests fundamental upside. In theory, good data for each of these companies reassured the market of future revenue, meaning that each stock became based on that sales potential. If NewLink's current Phase 3 HyperAcute treatment for pancreatic cancer is successful, then it could very likely see the same upside with its stock having a very attractive market cap to peak sales ratio, relative to the other large gainers that came before it.
What Does New Link Genetics Do?
NewLink Genetics Corp is a $300 million clinical stage biotechnology company that develops products for the treatment of cancer. Its HyperAcute cancer immunotherapies are being tested on various cancers by incorporating different drugs/technologies with the platform; its HyperAcute Pancreas trial is its most advanced study. HyperAcute Pancreas is being tested in a Phase 3 trial of more than 700 patients to treat pancreatic cancer. This particular cancer is one of the most deadly in the U.S., with most patients living less than a year after diagnosed. Current treatments include radiation, chemotherapy, and Genentech's Erlitinib. There are also a couple drugs in development with one being Celgene's (CELG) Abraxane showing promise in testing, extending life by two months for patients with advanced pancreatic cancer. Unfortunately, there isn't anything that drastically increases life, and the drugs used to treat the disease were developed to treat other forms of cancer. Hence HyperAcute Pancreas could see great commercial success, if successful, for its exclusivity to pancreatic cancer.
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