BearMO's Blog : New pick: CADX

This statement was made in the initial blog posting:
" Although the majority of picks will be biotech, I will also look for speculative 'Home run' stocks or stocks where I see a good short term gain. The goal is to have a high return percentage. I do not expect to have a high accuracy rating..
Currently the annual return is 95.5% and accuracy is 75%. Up 4.69% since 8/18/2010.

(CADX) has an early November PDUFA date and expected FDA decision for OFIRMEV (intravenous or IV acetaminophen.

CADX is developing OFIRMEV (acetaminophen) injection in the U.S. market for the treatment of acute pain.

CADX has in-licensed the exclusive U.S. and Canadian rights to OFIRMEV™, an intravenous formulation of acetaminophen that is currently marketed in Europe for the treatment of acute pain and fever by Bristol-Myers Squibb Company, or BMS, under the brand name Perfalgan®. According to IMS data, since its introduction beginning in 2002, over 250 million doses of intravenous acetaminophen have been sold in Europe and it has become the market share leader among injectable analgesics.

Because of delays we can look back at two recent run-ups of CADX.

During its run-up in 2009 CADX hit a high of $11.76 (10/12/09)
During its Feb 2010 run-up CADX hit a high of $10.91 (1/7/10)

The stock price as this is written is 7.99.
Our target price, assuming it is dilution-free, is $10.50. This would be a 30% gain.
We are targeting this price prior to the FDA approval date in November 13

Another way to play this stock is via options. $10 November Calls which expire AFTER the FDA date of 11/4/10, allows for speculation on share price if approved. Currently these calls are trading for around $.90, expectations is that the calls should be “in the money” before 11/4/10.

CADX as to the 'game' is being added as a stock pick.
Disclosure: I am an alter-ego of MightyMo.