3SOF

NVAX recovers after morning drop.  NVAX closed up 0.04 (0.82%) with 2.9 mil shares traded, which is lower than 3 month average of 3.9 shares.  New resistance is at $5.27 with support at $4.55.

What will be the fate of RHEO?  and how far will PXT, GNTA and CNXT go?

= Morning update =

GNBT resuming its gain and GNTA MACD hit bottom and is rising.

I sold some GNBT and holding 50/50 GNBT and GNTA.

= Update = Sold GNTA after morning gain and bought GNBT back. 
I will keep a close eye on GNTA still.

Wow, what an amazing day for GNBT!!! 

GNBT blew past the $2.00 resistance early and never looked back!  Gain of $0.35 (18.72%) with an amazing 19.6 mil shares traded which is almost 5 times the 3 month average volume of 4 mil shares!  New resistance is at $2.61 with support at $1.69.

GNBT is gaining past RSI 70-80+ due to extreme buying pressure after a "brief" profit taking of last two days.  Long term technicals look very bullish.

Ok, now to GNTA.  Nice rebound early and kept the it up all day with gain of $0.18 (7.06%) and 5.3 mil shares traded which is slightly lower than 3 month average volume of 5.5 mil shares.  New resistance is at $2.89 with support at $2.45.

I had bought GNTA this morning, but sold when I saw the buying pressure on GNBT (and I am glad I did).  If GNTA continues to rebound, it should gain to the previous profit taking points.

NVAX resumes its gain today with $0.20 (4.07%) gain and 3.8 mil shares traded which is slightly less than 3 month average volume of 3.9 mil shares.  New resistance is at $5.42 with support at $4.72.

retvet24, I also agree that INSM is worth watching for rebound.

Here's an interesting article regarding insulin delivery.  Thanks meuptonada from Yahoo MB for the link.

http://www.biopharma-reporter.com/news/ng.asp?n=65898-nektar-therapeutics-novo-nordisk-insulin-device-non-injectable-insulin

"Insulin delivery devices – an industry under threat

Kirsty Barnes

17/02/2006 - The insulin delivery devices thriving in today's market will slowly be replaced as new and better technologies continue to rise from the R&D pipeline.

... Their success will inevitably be at the expense of traditional insulin device manufacturers of syringes, pens and other gadgets, who will begin to feel the pinch.

This pinch will grow stronger, as other budding biotech companies with non-injectable insulin delivery devices in the pipelines, such as, Alkermes, Generex, MannKind, and Innovata, move in for their share of the market over the next few years.

When this occurs, companies involved in all aspects of traditional injectable insulin manufacturing will suffer, right across the spectrum, from manufacturers of syringes and pens, to sharps containers. ...

... However, the new threat arising from the biotech boom, looking to eventually wipe out injectable devices altogether, is like nothing this industry has seen before, and BD and many other existing companies now involved in pen manufacturing may struggle to adapt their businesses to the new technologies. ...

... What is clear though, is that the formerly placid insulin delivery systems industry is facing a period of rapid change and the stakes are high."

Ok, there's a lot of talk and requests as to what will happen with GNBT.

As long as there are continued buying pressure and high volume, like AMD and HOM, a stock like GNBT "can" keep gaining with RSI above 70-80+ (HOM continued gain with RSI above 70-80 during July - October of 2005).  If you notice, during the AMD and HOM high RSI gain period, the MACD stayed in the positive territory.  GNBT MACD has remained in the positive territory during the recent gains.  As long as the MACD remains positive with continued buying pressure and high volume, GNBT could gain like AMD and HOM.

Also, take a look at STX's gain as RSI was 70-80+.  As such, GNBT may follow in their foot steps and temporarily become less trendable.  If this happens, then we need to use the volume as our primary gauge and support our buy/hold/sell calls with technical indicators second.

A lot of requests for SIRI.  If you look at the daily chart, RSI is headed back down to 30 after a short-lived rebound.  MACD looks to go lower and technicals are very bearish (96% SELL) with resistance at $5.29 and support at $5.07:  http://quotes.barchart.com/texpert.asp?sym=siri

I also pulled the XMSR chart because they are two major competitors in the market.  Well, XMSR has already gone through two short-lived rebounds and is continuing to fall.  I would be very cautious with both and look for another short-lived rebound with SIRI.  If the entire sector is bearish, individual stocks in the sector may not rebound fully until the entire sector recovers.

Here's the repost of an interesting article regarding insulin delivery from the previous page.  Diabetes is a significant US/global health issue with a fast-growing patient base.  This is a huge market and companies like GNBT marketing an alternative to the traditional "injected insulin" delivery will certainly take a big share away from the "traditionals".

GNBT is not just an Avian play, and I believe the non-injectable oral insulin spray they market may be the reason for the recent gains in anticipation of what's addressed in the article below:

http://www.biopharma-reporter.com/news/ng.asp?n=65898-nektar-therapeutics-novo-nordisk-insulin-device-non-injectable-insulin

"Insulin delivery devices – an industry under threat

Kirsty Barnes

17/02/2006 - The insulin delivery devices thriving in today's market will slowly be replaced as new and better technologies continue to rise from the R&D pipeline.

... Their success will inevitably be at the expense of traditional insulin device manufacturers of syringes, pens and other gadgets, who will begin to feel the pinch.

This pinch will grow stronger, as other budding biotech companies with non-injectable insulin delivery devices in the pipelines, such as, Alkermes, Generex, MannKind, and Innovata, move in for their share of the market over the next few years.

When this occurs, companies involved in all aspects of traditional injectable insulin manufacturing will suffer, right across the spectrum, from manufacturers of syringes and pens, to sharps containers. ...

... However, the new threat arising from the biotech boom, looking to eventually wipe out injectable devices altogether, is like nothing this industry has seen before, and BD and many other existing companies now involved in pen manufacturing may struggle to adapt their businesses to the new technologies. ...

... What is clear though, is that the formerly placid insulin delivery systems industry is facing a period of rapid change and the stakes are high."

This is repost from Yahoo MB, thanks app814 for the post:

02/25/06 02:18 pm
Msg: 98629 of 98651

"This is their Vice President of Medical Affairs...Looks like he has some nice connections here in the states from his past work. Also, he is still a member of American Diabetes Association committees.

Dr. Bernstein, M.D., F.A.C.P. graduated from Dartmouth College and Tufts University School of Medicine. He is board certified in internal medicine (1966) and endocrinology and metabolism (1973). Dr. Bernstein is an associate clinical professor at the Albert Einstein College of Medicine in New York. He is an attending physician at Beth Israel Medical Center, and physician emeritus at Lenox Hill Hospital and Montefiore Medical Center, all in New York. He was formerly Director of the Beth Israel Health Care Systems Diabetes Management Program. Dr. Bernstein was president of the American Diabetes Association in 1998-99 and was for many years a member of the ADA's Board of Directors and its Executive Committee. He received the ADA's Banting Medal for Service in 1999. Dr. Bernstein presently serves on several ADA committees and on the Board of Directors of the American Diabetes Association Research Foundation.

And do you think this guy knows a couple people South of the border as well. Connections, connections...

Dr. Roberto Cid
Vice-President of Marketing & Sales
for Latin & South America

Dr. Roberto Cid has 30 years' experience in the international pharmaceuticals industry. He holds a Doctoral Degree in Pharmacy and Chemistry from the University of Chile and a Master of Business Administration degree from Columbia University in New York. He has also undertaken graduate studies in strategic management at Harvard Business School. Dr. Cid has held executive positions with Schering-Plough Corporation, Pfizer Inc. and Merck & Co., Inc. He served as General Manager & Regional Director of Latin America for Pfizer.

Very nice!

It could be also interesting to see what comes out of the Bird Flu summit at which they are one of only two biotech presenters.

Connections... "

Repost from Yahoo MB, thanks ronfrak for the link.

http://www.ediets.com/news/article.cfm/cmi_1148617/code_12738

Oral insulin making strides
Updated: February 25, 2006

For the first time in history, the notion that insulin cannot be given by mouth has been challenged. Generex Biotechnology reported completion of a pre-market clinical trial using a fine mist oral spray, Oral-lyn™, which allows insulin to be absorbed through the lining of the mouth. Oral-lyn™ was given as a replacement for fast-acting mealtime insulin in ten individuals with type 1 diabetes.

Results showed that over a nine-day period, subjects were able to successfully replace mealtime insulin injections with Oral-lyn™ and maintain equivalent glucose levels. In fact, a short-term marker of glucose control, fructosamine, was slightly better with the use of the oral insulin mist compared to injections. Larger studies will begin soon with the hope of eventual FDA approval on the horizon."

Company Profile 1 of 3

http://www.generex.com/fact%20sheets/cfs_12_05.pdf

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