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Healthcare stocks bounce back Friday after really messy week, but still licking their wounds from recent global selloff.

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After having their worst week in recent memory, with the NASDAQ HealthCare Index (IXHC) now down 8.6% since just Sept. 28, some healthcare stocks nonetheless blossomed with stupendous upswings. But there was still plenty of carnage scattered around on the Wall Street trading floors.

Here are the big winners and losers with a snapshot of their standing among analysts going forward.

1) CorMedix Inc. (NYSEAmerican:CRMD) led advancing issues, soaring 74% over the week to $2.26 on no specific news tied to such an upward blast. Looking back over the past quarter, shares have gained 466%. The last 6 months, they’ve added 52% to its price. Since the beginning of the calendar year, the stock has moved up 132%.

Ultimately, the gains started three months ago after the Bridgewater, NJ-based company announced a clinical update on its lead candidate Neutrolin, which it believes has great potential to save lives of patients receiving hemodialysis therapy as a treatment for end-stage renal disease and possibly to lower overall healthcare costs due to reducing the risk of catheter-related blood stream infections (CRBSI).

In a press release, the company announced that the independent Data Safety Monitoring Board (DSMB) has completed its review and interim analysis of data from the Phase 3 LOCK-IT-100 study. The news proved to be overwhelmingly positive. As a result, the company is ceasing the study and submitting the results to the FDA for its review.

Steve’s Take:

Analysts’ mean consensus is OUTPERFORM.

The 12-month average price target is $6.75.

The last closing price is $2.26.

The spread to the average price target is 199%

Our friends at Barchart.com rate CorMedix a BUY and rank it in the top 1% of all short-term signal directions. Longer term, the trend strength is in the top 1%. Long-term indicators fully support a continuation of the trend. The market is still in highly overbought territory. So, despite the huge spread to the consensus price target, beware of a trend reversal.

I agree that for the highly risk-tolerant portfolio, this name is a BUY.

2) Elsewhere, AcelRx Pharmaceuticals Inc. (Nasdaq:ACRX) surged 46% to $4.25. In a 10 to 3 vote, the FDA’s Anesthetic and Analgesic Drug Products Advisory Committee recommended approval for the company’s DSUVIA (sufentanil sublingual tablet) for the management of moderate-to-severe pain severe enough to require an opioid analgesic and for which alternative treatments are inadequate. Redwood City, CA-based AcelRx had hoped to win FDA approval for Dsuvia last year. The biotech submitted a New Drug Application (NDA) for the drug in February 2017.

Two Phase 3 clinical studies conducted by AcelRx appeared to show that Dsuvia was effective in alleviating moderate-to-severe pain in patients who either arrived at emergency rooms with trauma or injury or who had surgery. However, the FDA decided against approving Dsuvia stating in a Complete Response Letter (CRL) in October 2017 that additional safety data were needed on at least 50 patients. The FDA also said that changes were required for the drug’s directions for use.

Steve’s Take:

Analysts’ mean consensus is OUTPERFORM.

The average 12-month price target is $6.20.

The latest closing price is $4.25.

The spread to the average target price is 46%.

The Barchart Technical Opinion Rating is an 80% BUY with a Strongest short-term outlook on maintaining the current direction. Longer term, the trend strength is Maximum. Long-term indicators mostly agree with the trend.

Again, for the highly risk-tolerant portfolio, a modest BUY is in order.

3) But Arbutus Biopharma Corp. (Nasdaq:ABUS) plunged 54% to $4.31. The clinical-stage biotech provided an update earlier in the week on a change to its executive team and on its hepatitis B virus (HBV) program. Arbutus announced that it had hired Dr. Gaston Picchio as its new chief development officer.

The bigger story, though, related to the company’s HBV pipeline candidates. The good news was that experimental HBV drug AB-506 is advancing in a Phase 1 study from being tested in healthy volunteers to being evaluated in HBV patients. But Burnaby, BC-based Arbutus said a Phase 1 clinical trial evaluating RNA-destabilizer AB-452 has been delayed in order to allow for more time to characterize the compound. The study was originally set to start this quarter. AB-729 will potentially be studied in combination with AB-506 in a clinical study in the second half of next year.

The hiring of Picchio wasn’t enough to move Arbutus stock up. Neither was the sluggish progress for early stage candidates AB-506 and AB-729. But the delay for AB-452 hurt the most since Arbutus had expected the drug to move into Phase 1 clinical testing in the fourth quarter of this year.

Steve’s Take:

Analysts’ consensus here is HOLD.

The average 12-month price target is $8.81.

The latest closing price is $4.31.

The spread to the average price target is 104%.

The Barchart Technical Opinion rating is an 88% SELL with a Strengthening short-term outlook on maintaining the current direction. Longer term, the trend strength is Maximum. Long-term indicators mostly agree with the trend. The market is in highly oversold territory. Beware of a trend reversal.

Again, for the highly risk-tolerant portfolio, this name is a modest BUY.

4) And Menlo Therapeutics Inc. (Nasdaq:MNLO) skidded 36% to $6.53. The company started the year with a $119 million IPO, priced at the top end of its range, but the Menlo Park, CA-based biotech can’t seem to catch a break, says FiercePharma. Just six months after its lead drug flunked a Phase 2 trial in atopic dermatitis, Menlo is reporting another failure–this time in chronic cough.

Topline data from a 185-patient study show the drug, serlopitant, did not meet its primary and secondary endpoints. After 12 weeks, the drug performed worse than placebo at reducing patients’ 24-hour cough frequency. “Based upon the results of this trial, we do not anticipate further development of serlopitant for the treatment of refractory chronic cough,” said Menlo CEO Steve Basta, in a statement. Serlopitant is the only drug in Menlo’s pipeline.

Steve’s Take:

Analysts’ mean consensus is OUTPERFORM.

The average price target is $19.20.

The last close price is $6.53.

The spread to the average price target is 199%.

The Barchart Technical Opinion rating is a 48% SELL with a Weakest short-term outlook on maintaining the current direction. Longer term, the trend strength is Average. Long-term indicators mostly agree with the trend. The market is approaching oversold territory. Be watchful of a trend reversal.

There’s just one drug in their pipeline and it’s being dumped. Although the price target is a whopping 200% higher than the close price, better stay away from this name until there’s some news, anything, to inspire a pure gamble.



This post first appeared on Monday Morning, please read the originial post: here

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Healthcare stocks bounce back Friday after really messy week, but still licking their wounds from recent global selloff.

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