Mixed bag of small cap winners and losers in first half

EP Vantage’s review of share price performance in the first half of the year for small, micro and nano cap companies throws up a similar list of risers and fallers as at the first quarter stage, but with some notable exceptions (InterMune tops small cap gainers once more in first quarter, April 6, 2010).

These include the sudden disappearance of previous high-flyers InterMune and Neurosearch, as sky-high expectations of regulatory approval and clinical trial success, respectively, were dashed in the second quarter. In their place come the likes of Cardiome Pharma, boosted by positive clinical data and European advisory panel review of atrial fibrillation (AF) drug, Brinavess (vernakalant), and Sawai Pharmaceuticals on the back of an increasingly attractive generics scene in Japan (see tables below).

Small cap analysis

Questcor topped the small cap gainers, boosted by a positive FDA advisory committee review of its only product, Acthar, for the treatment of infantile spasms and as chief executive, Don Bailey, told EP Vantage the company is ramping up its promotional effort behind a product with a wide array of potential uses.

Shares in Danish biotech, Bavarian Nordic, gained massively in May following the FDA’s landmark approval of Dendreon’s prostate cancer vaccine candidate, Provenge, raising hopes for clinical and partnering success for Bavarian’s own phase III prostate cancer vaccine, ProstVac.

Micro cap analysis

Idenix is gradually clawing back some of the big losses it suffered last year as the market places more faith in its hepatitis C pipeline franchise, perhaps triggered by some positive early stage clinical data for a couple of candidates in April.

Neurocrine’s long awaited recovery from the dark days of its failure with insomnia drug, indiplon, was sparked by recent positive data for endometriosis drug, Elagolix, and subsequent partnering deal with Abbott Laboratories.

The sale of Regpara's (cinacalcet) royalty stream to DRI Capital for $38m in March appears to have coincided with an upturn in market valuation for NPS Pharmaceuticals, which has since successfully raised a further $57m from a stock offering which seems to have been taken well by its shareholders.

Avexa was the only new entry in the micro cap fallers, having finally thrown in the towel on development and partnership plans for its HIV drug and lead pipeline candidate, apricitabine (ACT).

Nano cap analysis

New riser entries were PROLOR Biotech and Inhibitex. PROLOR received an Israeli government grant of $1.6m in April, to support development of its growth hormone candidate MOD-4023. Inhibitex reported initial safety data for its shingles candidate FV-100, as reviewed by an independent Data Safety Monitoring Board (DSMB).

Of the new top faller entries in this half of 2010, Marshall Edwards reported that its oral phenoxodiol did not meet primary or secondary endpoints in the phase III OVATURE trial.