Morning Movers in Biotech: Ariad Pharmaceuticals, Exact Sciences Corporation and MannKind Corp

Today's top stories in biotech and health care.

Mar 28, 2014 at 8:57AM

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.

Let's take a look at the top stories in biotech and health care this morning -- keep an eye out for Ariad Pharmaceuticals (NASDAQ:ARIA)Exact Sciences (NASDAQ:EXAS) and MannKind (NASDAQ:MNKD) .

Ariad up on takeover rumors--again
Perhaps for the tenth time this year, Ariad Pharmaceuticals is moving higher in premarket after a rumor hit the wires about a potential takeover. Today, Jazz Pharmaceuticals (NASDAQ:JAZZ) is rumored, per the Daily Mail, to be willing to pay $20 a share for Ariad. As a reminder, the Daily Mail was the same source to float the buyout rumor about Eli Lilly, among others, earlier this year. Taking this rumor at face value, Jazz would thus be paying around $5 billion for a company with revenue of less than $100 million. Looking at the issue from a pure valuation perspective, you would have to call me a skeptic about the validity of this new rumor. Despite this problematic valuation, Ariad shares are still up over 7% on heavy volume in premarket this morning. 

FDA recommends approval for Exact Sciences' cancer test
Shareholders of Exact Sciences were on pins and needles yesterday as the stock was halted during an Advisory Committee meeting for the company's lead diagnostic test Cologuard. Cologuard is a stool-based test for colorectal cancer and a less-invasive alternative to colonoscopy. Fortunately for investors and patients alike, the committee voted unanimously, 10 to 0, that Cologuard demonstrated safety, effectiveness and a favorable risk benefit profile in a late-stage clinical trial. Shares are presently up over 5% in premarket trading. Looking ahead, Exact Sciences could move much higher if the test comes anywhere near its projected commercial potential. So, you might want to stay tuned to this developing story.  

MannKind may "pop" or "drop" today
Today could be a pivotal day in the life of developmental biotech MannKind, as it's widely expected that the briefing documents for the company's Advisory Committee meeting for its inhaled insulin product Afrezza will be released sometime today. If the documents are overtly positive or negative, the stock could move in a big way. By contrast, fairly vanilla documents such as those released yesterday for Durata Therapeutics (NASDAQ:DRTX) could serve to only deepen the mystery into how the U.S. Food and Drug Administration, or FDA, actually views the product. Regardless, we will finally get a detailed look into Afrezza's two late-stage trials, per the briefing documents. Although the FDA doesn't have to release the documents today, it usually does so two days prior to the Advisory Committee meeting, and it even released the documents for Durata's forthcoming meeting early in the morning yesterday. So, they could come at any time now.  

Boost your 2014 returns with The Motley Fool's top stock
There's a huge difference between a good stock and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.

George Budwell has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

1 Key Step to Get Rich

Our mission at The Motley Fool is to help the world invest better. Whether that’s helping people overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we can help.

Feb 1, 2016 at 4:54PM

To be perfectly clear, this is not a get-rich action that my Foolish colleagues and I came up with. But we wouldn't argue with the approach.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich" rated The Motley Fool as the #1 place online to get smarter about investing.

"The Motley Fool aims to build a strong investment community, which it does by providing a variety of resources: the website, books, a newspaper column, a radio [show], and [newsletters]," wrote (the clearly insightful and talented) money reporter Kathleen Elkins. "This site has something for every type of investor, from basic lessons for beginners to investing commentary on mutual funds, stock sectors, and value for the more advanced."

Our mission at The Motley Fool is to help the world invest better, so it's nice to receive that kind of recognition. It lets us know we're doing our job.

Whether that's helping the entirely uninitiated overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we want to provide our readers with a boost to the next step on their journey to financial independence.

Articles and beyond

As Business Insider wrote, there are a number of resources available from the Fool for investors of all levels and styles.

In addition to the dozens of free articles we publish every day on our website, I want to highlight two must-see spots in your tour of fool.com.

For the beginning investor

Investing can seem like a Big Deal to those who have yet to buy their first stock. Many investment professionals try to infuse the conversation with jargon in order to deter individual investors from tackling it on their own (and to justify their often sky-high fees).

But the individual investor can beat the market. The real secret to investing is that it doesn't take tons of money, endless hours, or super-secret formulas that only experts possess.

That's why we created a best-selling guide that walks investors-to-be through everything they need to know to get started. And because we're so dedicated to our mission, we've made that available for free.

If you're just starting out (or want to help out someone who is), go to www.fool.com/beginners, drop in your email address, and you'll be able to instantly access the quick-read guide ... for free.

For the listener

Whether it's on the stationary exercise bike or during my daily commute, I spend a lot of time going nowhere. But I've found a way to make that time benefit me.

The Motley Fool offers five podcasts that I refer to as "binge-worthy financial information."

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. It's also featured on several dozen radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable ... and I don't say that simply because the hosts all sit within a Nerf-gun shot of my desk. Rule Breaker Investing and Answers contain timeless advice, so you might want to go back to the beginning with those. The other three take their cues from the market, so you'll want to listen to the most recent first. All are available at www.fool.com/podcasts.

But wait, there's more

The book and the podcasts – both free ... both awesome – also come with an ongoing benefit. If you download the book, or if you enter your email address in the magical box at the podcasts page, you'll get ongoing market coverage sent straight to your inbox.

Investor Insights is valuable and enjoyable coverage of everything from macroeconomic events to investing strategies to our analyst's travels around the world to find the next big thing. Also free.

Get the book. Listen to a podcast. Sign up for Investor Insights. I'm not saying that any of those things will make you rich ... but Business Insider seems to think so.


Compare Brokers