What a difference three months make. Last quarter, investors were disappointed with biotechnology and nanotechnology company -- and Motley Fool Hidden Gems recommendation -- Flamel Technologies
Investors really turned a cold shoulder and sent the stock down 25% (ouch) when Bristol-Myers Squibb
The stock has fallen 45% over the last 52 weeks. That's about as unloved as you can get for a company that is cash-rich, has an interesting product pipeline, and has partners such as Merck
Then there is yesterday's news that the company earned $2.8 million in the third quarter. Investors liked that and sent the stock up 8%.
These profits would be great news if they were from product sales (although cash from any source is welcome). Instead, a milestone payment for the start of phase 3 trials for a reformulation of a major existing product from partner GlaxoSmithKline
With generic-drug company Biovail's
Flamel, part of the Merrill Lynch
The company's Medusa nanoparticle technology, which still needs a partner, improves the delivery of native protein drugs through a more evenly controlled release of the drug. With its potential to avoid side effects, there are plenty of prescription takers who hope the technology is a success.
Many Motley Fool Hidden Gems recommendations face a bumpy road. They are small and have little analyst coverage. Flamel's stock has certainly taken its share of bumps, but with two drugs in phase 3 trials, the company is worth watching.
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