The fear and pessimism behind major selling pressure and stock market losses can be summarized by the late Jim Morrison in a song by The Doors called 'Roadhouse Blues' – "The future's uncertain, and the end is always near." Some stocks that I follow which are trading at less than half of the 20% decline for the S&P 500 ETF (SPY) below its 50-day moving average are highlighted below.
Earlier this week, AspenBio Pharma (APPY) reported that its key clinical trial was nearly 90% enrolled for AppyScore, which is a blood-based diagnostic screening test for appendicitis. APPY expects to reach the required total of 800 patients within weeks, report topline results 4-6 weeks after enrollment is complete, and file a 510(k) with the FDA in early 2009 – which is a quicker approval process for medical devices and tests compared to the PMA process. APPY is currently trading at its 50-day moving average of around 5 bucks, which is impressive given overall market carnage.
Amgen (AMGN) has pulled back below its 50-day moving average of $55.50 at around 52 bucks today since reporting two consecutive quarters in which the Company beat estimates and raised guidance on better sales of its embattled anemia drugs Epogen and Aranesp. The outlook is also improving for Amgen's pipeline, including bone drug denusomab and recently approved Nplate.
Cypress Bioscience (CYPB) is about 8% below its 50-day moving average and has a still pending FDA decision for milnacipran in the treatment of fibromyalgia, which has been widely used as an anti-depressant in Europe and other markets for over a decade. The FDA missed its mid-October decision deadline, but said it expected to resolve the matter in a "matter of weeks", which is encouraging since the agency did not simply delay the deadline by three months as it has done in many recent cases. Another key event is Phase 3 results for the drug for the same indication, with results expected before year-end.
Teva Pharma (TEVA) is trading slightly below its 50-day moving average of around 42 bucks, with a bullish outlook
for the Company as the leader in generic drugs which also engages in R&D for brand drugs such as Copaxone. Perrigo (PRGO) is another generic drug company focused more on over-the-counter products, which is trading slightly below its 50-day moving average of 33 bucks.