Enanta Pharmaceuticals, Inc., ImmunoGen, Inc. and Prana Biotechnology Ltd Could Be Big Movers in Healthcare Today

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

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.

Good morning, fellow Foolish investors! Let's take a look at the early movers in health care today.

Hep C treatment data boosts Enanta Pharmaceuticals 
Perhaps the biggest story of the day in health care is Enanta Pharmaceuticals (NASDAQ: ENTA  ) late-stage trial data for its all-oral hepatitis C treatment being developed by AbbVie (NYSE: ABBV  ) . Enanta's therapy, currently known as ABT-450, was being investigated in three separate late-stage trials as a treatment of the most common form of hepatitis C, genotype I. What's important to key in on is the high sustained virologic response rates across the trials. Specifically, ABT-450 showed greater than 90% response rates within a twelve week time frame for all trials combined. Simply put, ABT-450 appears to be the latest all-oral functional cure for hepatitis C, and could be a major competitor to Gilead's Sovaldi in the near future.  

ImmunoGen's future looks bright
Shares of the monoclonal antibody maker ImmunoGen (NASDAQ: IMGN  )  are also moving higher in premarket this morning after the company gave a particularly rosy outlook for 2014, and a stronger than expected earnings report. Namely, ImmunoGen beat earnings estimates by $0.22 last quarter, propelled by increasing royalty payments for its antibody drug conjugate, or ADC, Kadcyla licensed out to Roche

What's really exciting investors this morning, however, appears to be the large number of near-term clinical catalysts outlined in the earnings report. Chief among these catalysts, ImmunoGen announced that they will give a clinical update for their wholly owned ADC, IMGN529, indicated for CD37-positive B-cell malignancies by mid-2014.  

Is ImmunoGen worth keeping on your radar? I believe so. Major pharmas like Roche have helped to validate the ADC platform as an important new therapy for the treatment of cancer, and ImmunoGen is clearly a leader in this effort. So, you might want to dig deeper into this compelling biopharma going forward. 

Prana pulling back? 
Shares of the tiny Austrian-based Prana Biotechnology (NASDAQ: PRAN  ) are pulling back in premarket this morning following their monstrous 20% rise yesterday. The company's shares are now up an impressive 75% for the month of January alone.

Although it's difficult to pin this meteoric rise on a particular event, it's likely linked to the upcoming data release of the company's two mid-stage trials for PBT2, an experimental treatment for Alzheimer's disease and Huntington's disease. According to my Fool colleague Keith Speights, Prana's executive management have been traveling to discuss the trials with institutional investors lately, which has probably helped drive some of the recent movement.

In light of the stock's world beating month, today's pullback shouldn't come as a major surprise. That said, it's important to understand that Prana will need to raise a significant amount of cash to move PBT2 into late-stage trials, if the mid-stage data warrants such a development. Put simply, a secondary is highly likely in the near future. So, with that in mind, I think there will be better opportunities to buy Prana shares post-data release.    

Make sure to check out these two biotechs that may revolutionize cancer treatment.
The best way to play the biotech space is to find companies that shun the status quo and instead discover revolutionary, groundbreaking technologies. In the Motley Fool's brand-new FREE report "2 Game-Changing Biotechs Revolutionizing the Way We Treat Cancer," find out about a new technology that big pharma is endorsing through partnerships, and the two companies that are set to profit from this emerging drug class. Click here to get your copy today.

Read/Post Comments (2) | Recommend This Article (4)

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 February 01, 2014, at 10:40 AM, funfundvierzig wrote:

    A well-articulated and succinct overview of Prana Biotechnology Limited and its volatile stock.

    One minor editorial correction: Prana harks from Down Under, Australia, not from Europe, Austria.


  • Report this Comment On February 02, 2014, at 8:06 PM, dhmcinnes wrote:

    Hey George, Prana Biotech is Australian, not Austrian

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2818314, ~/Articles/ArticleHandler.aspx, 9/2/2015 10:52:14 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

George Budwell

George Budwell has been writing about healthcare and biotechnology companies at the Motley Fool since 2013. His primary interests are novel small molecule drugs, next generation vaccines, and cell therapies.

Today's Market

updated 1 hour ago Sponsored by:
DOW 16,351.38 293.03 1.82%
S&P 500 1,948.86 35.01 1.83%
NASD 4,749.98 113.87 2.46%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/2/2015 4:00 PM
ABBV $60.98 Up +0.48 +0.79%
AbbVie Inc. CAPS Rating: ****
ENTA $39.34 Up +2.30 +6.21%
Enanta Pharmaceuti… CAPS Rating: ****
IMGN $13.46 Up +0.48 +3.70%
ImmunoGen CAPS Rating: ***
PRAN $0.90 Down +0.00 -0.28%
Prana Biotechnolog… CAPS Rating: ***