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Expert Financial Analysis and Reporting

SmithOnStocks Opines on Biotechnology Stocks, June 10, 2013

Introduction
This week’s edition of SmithOnStocks Opines includes brief comments on news concerning ImmunoCellular Therapeutics (IMUC) and Cadence (CADX), last week and have highlighted an upcoming presentation that could be a boost to Neuralstem’s (CUR) stock.

ImmunoCellular Therapeutics (IMUC): The Company announced that the phase II trial of ICT-107 had reached an interim point that was determined by 32 deaths having occurred in the trial. The Data Monitoring Board recommended that the trial continue which was in line with my expectations and the guidance of the Company. Some investors had predicted or hoped that this interim look would show dramatic therapeutic benefit that would cause the DMB to stop the trial and allow IMUC to submit a BLA. The press release on Friday was accompanied by 7% increase in the stock price so this news was not taken to be disappointing. The next important point in the trial will be the occurrence of 64 deaths which will lead to the stopping of the trial and analysis of the data. This is expected late this year.

Neuralstem (CUR): Eva Feldman, the lead investigator of the phase I trial of the Company’s neural stem cells in ALS will be the keynote speaker at the Canadian Neurological Sciences Federation meeting of June 12 to June 14. This will be her first public presentation on the ALS trial in a North American setting and follows her recent presentation at the Romanian Neurological Society Congress. She will speak at 8:30 AM on June 13 and the title of her speech is “Intraspinal Stem Cell Transplantation in ALS”. This could give a boost to the stock.

Cadence Pharmaceuticals (CADX): There was unusual price and volume action last week in the stock. The stock closed at $6.65 on Friday May 31 and traded 196,900 shares. On Monday June 3, the stock traded 1,161,100 shares and closed at $7.66 and on Tuesday June 4 traded 1,398,700 shares and closed at $8.09. Cadence normally trades about 350,000 shares per day. Trading volume declined to more normal levels on Thursday and Friday and the stock closed the week at $7.43.

I was unable to find a reason or even a rumor to explain the trading action on Monday and Tuesday. My immediate thought was that perhaps a patent settlement had been reached with Exela, but there was no subsequent press release. Also, management remained silent on the stock behavior. Consequently, I can’t explain the trading.


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