The Single Biggest Development in 2013 for Keryx Biopharmaceuticalshttp://www.fool.com/investing/general/2013/12/14/the-single-biggest-development-in-2013-for-keryx-b.aspx Maxx Chatsko
December 14, 2013
Developmental pharmaceutical companies can bring plenty of joy or sorrow to investors. Keryx Biopharmaceuticals (NASDAQ: KERX) has a history of both. Shares eroded over 70% in April 2012 after the massive failure of the colon cancer drug candidate perifosine. That single binary event, now a distant thought, proved why investing in young companies is so risky. The explosion of shares on great data for its chronic kidney disease, or CKD, drug Zerenex in the beginning of 2013 has proven why it can be so very rewarding.
Keryx has no other compounds on the market or in development, which makes this year's driving force quite obvious. A New Drug Application, or NDA, for Zerenex has been submitted and accepted by the United States Food and Drug Administration. Approval for the drug, which seems very likely, should lead to increased competition for less-encompassing phosphate binders, such as Renvela from Sanofi (NYSE: SNY) and Phoslo from Fresenius (NYSE: FMS). Let's review the reasons why, and reflect on progress made in 2013.
Positive results go boom!
So why would doctors want to prescribe Zerenex over the competition? The drug met secondary endpoints that compared it to Renvela and Phoslo (the active controls) in boosting iron storage. Patients taking the two incumbents usually require intravenous iron to stay within healthy ranges, and managed a negligible 1.5% improvement in the 52-week study. Exc