On Friday, positive study results for Medarex's
Although this was only a preclinical study, the company found the results promising. It believes Valortim could become an ideal solution for the military and general public in the event of an anthrax bioterror attack.
Medarex is an intriguing company with an attractive drug pipeline. Its phase 3 candidates include ipilimumab, a potential treatment for melanoma and other cancers that the company is jointly developing with Bristol-Myers Squibb
In the meantime, the company has been generating revenue from licensing its fully human antibody technology to pharmaceutical and biotechnology companies. Medarex had $48.7 million in total revenue for FY 2006, although it posted a net loss of $181.7 million, or $1.50 per share. The company is sitting on $883.9 million in cash and marketable securities, but as its products move toward commercialization, Medarex could continue to incur substantial losses if it can't secure new contract and license revenues.
The stock is a bit speculative at this point, but the anthrax study results are very positive for shareholders. Long-term investors could be rewarded in a big way, should any of Medarex's drugs ultimately become commercialized.