NEWS & COMMENTS

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 Q.F.R.

      Biotechnology firms’ quarterly financial results have become a predictable asset in the hands of put option players and short-sellers. They became bad news for long-term investors in the industry. Money-making has become almost guaranteed for negative investors, as stocks are being slashed regardless of the nature of the results. Most biotech stocks plummet during the Q.F.R. season, as no analyst seems to be satisfied with any results, no matter how high the sales growth, or how promising are the firms technologies, pipeline products and futures. The  percentage of stock losses during the QFR season is increasing each and every quarter, as more investors are becoming aware of the phenomenon.

     The game has become easy to play.  

     The most recent victim, PDLI, lost over 23% of its value despite narrowing its losses from $83.9 million or 87 cents a share in the first quarter of 2005.to $26.2 million, or 23 cents a share in the same period in 2006. The stock was cremated despite the increase in revenues from $38.8 million in 2005 to $90.5 million this year. PDL shareholders lost all this money even though the firm has proven to make an excellent decision acquiring ESP Pharma, which already had several products on the market.

     From their homes, analysts are running these firms and coming up with projections that do not match those of the firms' managements and accountants who really run these firms and know best about their capabilities and problems. Usually, analysts’ forcasts are much higher than the firms’ managements' projections. In addition, the firms’ technologies, future products, sales, fees, royalties and new drug approvals are all overlooked as if non-existant.

Here are some upcoming dates that might be interesting to some investors:

Some Q.F.R. Upcoming Announcements

Alnylam (ALNY):                                         Tuesday May 9, 2006

Trimeris (TRMS):                                       Wednesday May 10, 2006

Acadia (ACAD):                                          Wednesday May 10, 2006

Neurobiological Techn. (NTII):                Wednesday May 10, 2006

Will the pattern change?

We doubt it.

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