These Are The 5 Stocks To Watch Ahead Of Major Meeting

• March 24, 2003
• Paul Ruggieri

On Sunday, March 30, the American College of Cardiology
holds its annual meeting in Chicago. The meeting is a major forum
for cardiologists from around the world to present data on new drugs to treat
all aspects of cardiovascular disease. In regards to investors in biotech, it is
truly the first influential meeting of the year. The meeting lasts until
Wednesday, April 30, and should draw some serious investor attention to
presenting companies involved in developing drugs to treat cardiovascular
disease. 

As we all know, cardiovascular disease is the number one killer of people today
and the number one growing market for potential new drug treatments. Any new
drug with the potential to improve upon the morbidity or mortality of this
disease will greatly impact a company’s financial future. 

Although not as high profile as the ASCO (American Society of Clinical Oncology)
meeting in May, companies presenting significant data at this meeting can be the
subjects of significant daily volatility once their presentations go public. In
addition, sometimes a single company’s presentation, if significant enough, can
be a catalyst for an entire sector of biotech companies. Due to the news
generated from this meeting, I expect next week to be a very active one for
biotech. 

Who are some of the companies presenting at next week’s Cardiology meeting?

1. 
   CV Therapeutics
   (
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   has a big presence at the upcoming American College of Cardiology meeting,
   presenting six abstracts to gathering doctors. The company will present trial
   data from its new drugs Renexa
   (Ranolazine) and CVT-3146. CV
   Therapeutics recently was notified that its New Drug Application (NDA) for
   Renexa was accepted by the FDA for review. Normally, the FDA will take up to a
   year to make a decision on an accepted NDA. I expect the FDA to make a
   decision on this drug by the end of the year. If it does get approved, and I
   anticipate it will, the drug has the potential to be a blockbuster for the
   company with potential sales of over $1 billion. Renexa is a new class of drug
   aimed at patients with chronic angina, a disease that affects over six million
   people. The drug partially inhibits fatty acid oxidation (pFOX), an underlying
   factor in the development of coronary artery disease. The company is also
   investigating other potential disease markets for the drug, such as diabetes
   and congestive heart failure. 

   In addition to highlighting its main drug Renexa, CVTX will also discuss data
   on its novel selective A2A Adenosine Receptor Agonist CVT-3146. This new agent
   is being developed for use during diagnostic cardiac perfusion imaging
   studies. Cardiac perfusion imaging studies are often ordered by cardiologists
   in the workup of patients with coronary artery disease to evaluate for
   potential blockages. According to the company, CVT-3146 has the potential to
   work better than current imaging stress agents used during cardiac imaging
   studies.

   Besides the two new drugs mentioned, CVTX also has within its developing
   pipeline other drugs directed at treating big market diseases. The company is
   nurturing a new drug (Adentri) with Biogen to treat congestive heart failure,
   a drug currently in phase II clinical trials. It also has another new drug (Tecadenoson)
   in phase II/III clinical trials to reduce the accelerated heart rate observed
   in atrial arrhythmias. Atrial arrhythmias are common in the elderly and often
   require several different medications to control. Both these new drugs have
   the potential to be big revenue producers for the company.   

   Overall, I expect CV Therapeutics to have a major presence at next week’s
   cardiologist meeting, a presence that could translate into some upside
   volatility. In addition, I like the company’s pipeline position for the
   long-term.   

    

2. 
   Scios Corporation
   (
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   will also be highlighted at the upcoming meeting of cardiologists by
   showcasing additional data on its current marketed drug (Natrecor) to treat
   congestive heart failure. Since this drug was approved for the treatment of
   congestive heart failure, it has been generating significant use by
   cardiologists. The company is expected to present several abstracts
   highlighting the significant impact of their new drug on this difficult to
   treat disease. 

   
   

   Scios also is developing a new drug directed at treating rheumatoid arthritis,
   another major disease market. The drug is a new class of compound (p38 MAP
   Kinase Inhibitor) and is currently in phase II clinical trials. The company is
   expected to release virgin data on this drug sometime within the next month. Scios
   was recently bought out by Johnson & Johnson.

    

3. 
   Medicure (TSX: MPH),
   a small Canadian company listed on the Toronto
   Exchange may also get some attention at next week’s meeting. The company’s
   lead new drug MC-1 recently completed phase II clinical trials. The study
   called MEND-1 was carried out under the guidance of the world-renowned Duke
   University Clinical Research Institute. The phase II trial was carried out to
   evaluate the cardioprotective effects of MC-1 against ischemic reperfusion
   injury in patients undergoing balloon angioplasty of diseased coronary
   vessels. 

   The preliminary results of the trial were very positive, with both primary and
   secondary endpoints met.  In addition, there were no serious safety concerns
   about the drug. Medicure’s new class of compound appears to effectively reduce
   ischemic damage to heart muscle after angioplasty as measured by several
   criteria in the study. This is an important observation and can have
   significant implications for the company’s future if the drug’s efficacy holds
   up in phase III trials. 

   Medicure expects to present the full trial data at next week’s meeting and I
   expect the company to be the focus of some attention for several
   reasons. First of all, the trial was conducted by some of the most well
   respected cardiologists at Duke in the field of ischemic heart disease.  This
   fact alone will carry weight in the eyes of many cardiologists and
   investors. In addition, the preliminary phase II data is impressive enough
   that many cardiologists will take notice of the potential use of this new drug
   during angioplasty procedures. Finally, MC-1 is aimed at a large, growing
   disease market that has the potential to generate a substantial amount of
   revenue for the company if the drug makes it to market.

   Medicure’s stock price is currently selling under a $1/share. The fact that
   preliminary positive phase II data has been made public may be already
   factored into the price of the stock. Despite this potential, I believe there
   will be more room for movement once the full data is presented at the
   meeting. On a final note, the company just announced that it will make a
   presentation at the March 25 Wall Street Transcript Conference in New York
   City prior to its presentation at the American College of Cardiology
   Conference.  

    

4. In
   addition to these three companies, The
   Medicines Company
   (
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   GenVec
   
   (
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   making presentations on their unique approaches to the treatment of
   cardiovascular disease. GenVec’s approach is interesting because it involves
   gene therapy to stimulate the growth of new blood vessels around blockages in
   the main coronary arteries.

The bottom line is next week’s meeting of cardiologists should
focus some positive attention on the biotech sector, particularly those
companies involved in developing novel treatments for patients with
cardiovascular disease. 

Good Luck,

Paul Ruggieri, MD, FACS