Poniard Pharmaceuticals: Positive Phase 2 News and Patent Portfolio Could Make it a Good Buy
Now here is what really caught my attention about PARD, on November 13, 2009 the stock was trading at $7.58, and on Monday, November 16, 2009 it dropped like a rock to $1.83, where it has largely stayed in a trading range plus or minus since. So what happened? On November 16, 2009, PARD announced what they called a positive Phase 3 study of picoplatin for use to treat small cell lung cancer patients. Those treated with picoplatin had an 11% reduction in the risk of death compared to patients treated with current best practices, which was not a positive enough result to be statistically significant. As is often the case with companies like this in the biotech sector, bad news is devastating to a stock. It is also true that stocks in the biotech sector also do quite well on good news. Back in March 2009, PARD was trading at about $1.70 to $1.80 before running up to a high of $9.14. So could this positive Phase 2 news of picoplatin and colorectal cancer be the precursor to another run up?