Biotechnology Stocks Hot Off Of Orexigen Panel Vote
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Orexigen Therapeutics, Inc. (NASDAQ:OREX) is trading at $9.39, +4.63 (+97.27%), after an FDA panel voted in favor of giving their diet drug FDA approval. This vote does not constitute approval yet, but generally when the panel votes in favor, the drug is approved. As Orexigen sky rockets, sympathy plays in the diet drug space are also seeing massive gains. VIVUS, Inc. (NASDAQ:VVUS) and Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) are both trading higher by more than ten percent.
Biotechnology small cap stocks are one of the few areas that have not seen any sort of run up in the last three months. Due to this factor, I am looking for small cap biotech plays that have nice setups or at the dead lows. I have picked up a few in recent days and the OREX news seems to be waking them up. My favorites are Poniard Pharmaceuticals, Inc. (NASDAQ:PARD), which currently trades below cash value and Somaxon Pharmaceuticals, Inc. (NASDAQ:SOMX) which has a solid bullish consolidation pattern on daily chart, while trading near the lows. Should biotechnology stocks wake up, I believe these two will be among the first to rocket.
Gareth Soloway
