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