Speculative Biotech Stocks To Consider In The Wake Of...

Speculative Biotech Stocks To Consider In The Wake Of Early-Stage Developments
December 13, 2012

When it comes to the biotech sector, many stocks that trade under $5/share are considered to be very speculative, and as a result I wanted to focus on two that could benefit from developments within their specific markets. In this article I've chosen two companies that have met the follow criteria:
Prana Biotechnology Ltd. (PRAN) which is based in Parkville, Australia engages "in the research and development of therapeutic drugs for the treatment of neurological disorders in Australia. The company primarily focuses on the Alzheimer's, Parkinson's, and Huntington's diseases, as well as various cancer, age-related macular degeneration and cataract, Motor Neuron, and Creutzfeldt-Jakob diseases". (Yahoo! Finance)
From a fundamental perspective shares of Prana currently carry a market cap of $72 million, have traded up 50.13% since July 1st and are currently trading at a 3.69% discount to their 50 DMA and at a 16.17% premium to their 200 DMA.
On December 13th it was announced that the Journal of Huntington's Disease has published data showing the benefits of its experimental drug PBT2, for the treatment of Huntington's Disease. The results highlight PBT2's ability to inhibit the development of the symptoms and pathological features of the disease in animal models. The drug is currently being tested on patients in 20 sites across the USA and Australia, with results expected in Q2 of 2013.
IInvestors should also note that "PBT2 has markedly reduced neuro-based degeneration, significantly increased lifespan and improved motor function and coordination in an aggressive animal model of the disease," said lead author and Head of Research at Prana, Associate Professor Robert Cherny. If Prana can continue to demonstrate significant strides, especially in terms of the reduction of neuro-based degeneration with regard to PBT2, in both the US and Australia, I see no reason why a small to moderate sized position should not be established at current levels.

http://seekingalpha.com/article/1063461-2-speculative-biotech-stocks-to-consider-in-the-wake-of-early-stage-developments?source=yahoo