AEterna Zentaris Could Rise Even In Market Pulls Back
AEterna Zentaris (AEZS) is another more speculative play that has slipped lower recently but could rise even if the market decides to pull back from its record highs, mainly due to catalysts that are still to unfold over the coming weeks and months. Another reason that AEZS could trade independently of the broad market action, if news and developments warrant, is for the same reasons discussed in the BlackBerry discussion above. As investors pull profits from the highs of this record-setting rally, then money could flow back into those investments more speculative in nature that have the potential to spike - even in a down market - based on unfolding catalysts.
As previously identified, one potential near-term catalyst for AEterna is the expected NDA filing for AEZS-130 as a diagnostic test for Adult Growth Hormone Deficiency. This product candidate is not quite expected to become a huge money maker, if only because of the relative size of the intended market, but AEterna maintains world-wide rights to and - if approved - could provide a future revenue stream to assist in funding other pipeline products.
Also watch for developments on the AEZS-108 front. AEterna recently announced that the first patient had been treated in a Phase II trial testing AEZS-108 in the treatment of triple-negative breast cancer, but Phase II studies also continue for AEZS-108 the treatment of prostate and bladder cancers. Interim results from these trials are expected at various points throughout 2013. AEZS-108 is also being prepared for a near-term launch of a Phase III trial in the indication of endometrial cancer, according to the latest information published to the company's website, after already having established a proven record of success in other early to mid-stage trials. Investors looking for a place to insert some speculative money following the broad-market run, may like what they see on the AEZS catalyst plate.
Another key milestone to watch relates to Perifisone, a product whose potential may not be valued into the AEZS share price any more due to its Phase III failure in treating colon cancer. AEterna, however, retained full rights to Perifisone when then-partner Keryx Biopharmacueticals (KERX) pulled out and a Phase III trial continues in the treatment of multiple myeloma. An independent monitoring committee is slated to analyze interim results from this trial within the current quarter and if the committee recommends that the trial continue, investors still skeptical after the colon cancer outcome may be reassured to take another chance on the product's future, which provides yet another near-term catalyst.
The immediate market rally looks as if it will continue for now, but look for investors to start taking advantage of potential catalyst plays as profits start coming off the table and cash enters the speculative market again. AEZS could benefit at that time.
Roundup: Judging by international market action and Wednesday's encouraging private jobs data, we're likely to see new record highs during the course of the day. As mentioned above, though, it's not the time to get complacent as the global recovery is hardly set in stone and there are still many speed bumps that can materialize along the way, especially in the absence of resolution in Washington. While enjoying the broad market run that has filled up those 401Ks again, now's the time to start looking for the individual stocks and stories that have the potential to move higher based on catalysts and development, even if a pullback occurs.
Note 1: Please alert the board of any stock crossing the 20,50,20dma’s on daily or weekly chart.
Note 2: Please do an 8x34 chart on the stock; the 8x34 cross is the initial reversal sign of most stocks. Use the link below, just replace the ticker symbol. Post on the board when a stock crosses the 8DMA or the 34DMA and when the 8x34 cross is about to occur.
8x34 cross in the making, look at Full Sto, and CMF indicators. just replace the ticker with your TICKER
News 
Market Data 
Discover 
AI
