Medarex On A Roll

The current stock market doldrums seemed to have brought down many a companies with the exception of Medarex. Medarex, which filed its 10-Q on Monday, has defied the gravitating pull of the bears and risen up on heavy volume in the last week or so.

What makes Medarex special is that in the past one year it’s major competitors, Abgenix and Cambridge Antibody Technology, were bought out for a premium by Amgen and AstraZeneca respectively. In addition to this, the company boasts “over 30 antibody candidates in human clinical trials, or have had regulatory applications submitted for such trials”.

A closer look at it’s drug candidates reveals that “Phase III clinical trials are currently underway relating to eight of the most advanced product candidates in which Medarex has an economic interest through co-promotion/profit sharing rights, royalties and/or equity ownership. Seven of these candidates were generated through the use of their proprietary technology”.

Medarex has not been profitable and has an accumulated deficit of approximately $894.3 million, but it’s looks certain that they are a few years from profitability upon the commercialization of their candidates or being bought out due to the richness of their late stage portfolio.

Disclaimer: MEDX is one of the companies that I had a limit order on just before I went on vacation. Thankfully, I bought it at my limit price. I’ve bought it and sold it in the past and will not hesitate to do likewise in the future.