Biotech Values

[mcbio]

ECYT and BMTI are IMO better "bottom fishing" bets than DRRX for the following reasons

1) Trading below cash. If the ongoing Greek talks ends badly and the EU implodes for that reason or for several other reasons, I'd rather be holding stocks trading near cash with meaningful near-term catalysts.
2) Upcoming catalysts - BMTI is expecting an EU decision on its augment program during the 1st half of the year along with the results of a rotator cuff repair clinical trial within the next few months. ECYT has fewer catalysts but could announce that it will proceed to apply for accelerated EU approval for Ovarian. ECYT could also get approval from the FDA for a parallel P3 trial with another chemo while it waits for more doxil. ECYT also has PII NSCLC trial results upcoming sometime this year. While the results announced in december weren't good compare the results with other companies with suspect PII results like ARQL.
3) Insider buying - There has been substantial insider buying for ECYT in the low to mid 3's. None so far for BMTI though.

I don't get the love for ECYT. Sure, there was a nice chunk of insider buying after the large drop and, while that's nice to see, sometimes that's just Fool's Gold. More important to me is the fact that while their recent Phase 2b ovarian cancer drug trial wasn't powered to detect stat sig OS benefit, ECYT didn't even show a trend favoring their drug. I don't get how that's not a big deal. They seem to be employing a similar type of approach for all of their drug candidates so this might even raise concerns for their other drugs. Surely they will have to show an OS benefit in Phase 3 in ovarian cancer to have an approvable drug.