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Why Keryx Biopharmaceuticals Shares Nearly Doubled

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of clinical-stage biopharmaceutical company Keryx Biopharmaceuticals (NASDAQ: KERX  ) scorched higher by as much as 99% after reporting positive late-stage data on its kidney disease drug, Zerenex.

So what: Zerenex, which targets hyperphosphatemia -- a complication that occurs at end-stage renal disease and can lead to calcification of the arteries leading to the heart -- performed remarkably well in trials. As my Foolish colleague Keith Speights noted, Zerenex "Reduced patients' mean serum phosphorus levels by 0.3 mg/DL during the four-week efficacy assessment period, while patients taking placebo saw their levels go up by 1.9 mg/DL." No one expected this much statistical success from Zerenex, which met many of its secondary endpoints as well, and the company is now readying to file for approval in the second quarter.

Now what: The results were nothing short of impressive, but I still have doubts heading into the FDA approval process that Zerenex could run into issues. The clinical studies speak for themselves, but from a commercial manufacturing standpoint, I'm almost certain Keryx lacks the capital to meet the FDA's rigorous safety and production requirements. As for me, I'd use today's huge run-up as a chance to calmly walk out the door and tip the doorman on the way out.

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Read/Post Comments (3) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On January 28, 2013, at 2:01 PM, johndoe9993889 wrote:

    You obviously haven't done any research on this market.

    The market leader, Renvela, does $800mm/yr in sales. You are really telling your readers to sell a company at less than 1x sales? Not to mention JT Torii royalties and the potential to be a leader in the pre-dialysis market, which is said to be 3-4x the size of the dialysis market.

    Seriously Foolish advice.

  • Report this Comment On January 28, 2013, at 3:12 PM, TMFUltraLong wrote:


    No, I'm cautioning readers about buying into an as of now experimental drug. Lets see if Keryx finds a partner and then I'll reassess.


  • Report this Comment On January 28, 2013, at 6:02 PM, goldozone wrote:

    Nice. I'm loading up at these levels. Also check out $CERP Plastic Made From Algae << Good Luck $KERX

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9/28/2016 4:00 PM
KERX $5.25 Up +0.08 +1.55%
Keryx Biopharmaceu… CAPS Rating: **