HIDDEN GEM FOR NOVEMBER (DDSS - Labopharm Inc. Price: $1.55) a defensive biotech company with 100%+ potential and limited downside risk due to a recent FDA ruling on 10/07/09. Three research houses raised guidance per FDA ruling 10/08/09.
FDA found no efficacy or safety issues in July letter to DDSS.
Sales potential from new drug: 550M
Three Broker upgrades: after FDA approved manufacturing plant.
Labopharm Tgt Raised To C$3 From C$2 By Versant - 10/8/2009
Labopharm Inc. Tgt Raised To C$2.50 From C$1.45 By Dundee - 10/8/2009
Labopharm Tgt Raised To C$2.80 From C$2.60 By Canaccord - 10/08/2009
Key to drug is huge market 19.9B.......DDSS drug has a decided advantage in that no weight gain seen and no sleep problems.
Article link on weight gain problems http://www.webmd.com/depression/features/antidepressants-weight-gain
Stock had bottomed as price started to advance late week as an 8 month trendline held in mid 1.40's. Stock was strong Wednesday, Thursday, and Friday even though major indexs were plunging.
"...One-half of patients being treated with antidepressants discontinue therapy within a year for reasons related to efficacy and/or tolerability, including delayed onset of therapeutic response, insomnia or sleep disturbance, agitation, exacerbation of anxiety, sexual dysfunction, weight gain and somnolence. Labopharm has developed a novel once-daily formulation of 150 mg and 300 mg of trazodone hydrochloride, a serotonin antagonist reuptake inhibitor (SARI), for the treatment of major depressive disorder (MDD) to address patient needs in the current depression landscape, providing an effective and convenient treatment option. In a Phase III placebo controlled study of patients with MDD, Labopharm's novel trazodone formulation demonstrated antidepressant efficacy, including rapid onset of therapeutic response, improved overall quality of sleep, a well tolerated adverse event profile, a very low rate of sexual dysfunction and no weight gain compared to placebo...."
Updates and Alerts
11-02-09 - DDSS hits a high of $1.73 from the alert at a closing price of $1.55. This should be just the start.