Biotech Values

[Democritus_of_Abdera]

Re PSDV ...

In my opinion PSDV is a momo stock. Its near term outlook and current movement is dominated by the prospects of Alimera obtaining approval of Iluvien, a long acting formulation (device) for intra-ocular steriod treatment of diabetic macular edema (see #msg-40525507).

Alimera will almost certainly comply with Zebra’s law and submit Iluvien for FDA approval after the phase III data becomes available near the end of the year (2009). This is reason for excitement in the near term; however, trading is so thin that it will be difficult to get out in an orderly way when sentiment turns.

Neither PSivida nor Alimera have enough money to move this forward much beyond submission without a new cash infusion or partner.

And, I think FDA approval of Iluvien is far from certain.... Steroids cause cataracts and rises in intra-ocular pressure. There are other treatments (notably laser coagulation and avastin) that are probably just as effective and have fewer side-effects (see #msg-31339719). And, there are competitors in the same space (notably Ozurdex).