In fact, diseases that could not be targeted using small molecules will now come within the reaches of therapy. I am quite excited about Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY)’s RNA interference technology. Companies that are devising technologies to create medications along this new therapy dimension look very promising.
Alnylam has several drugs in the developmental and clinical trials phases. The therapy areas being targeted are diverse and new markets can be entered through the “Alnylam 5×15” program, for genetically defined diseases.
The stock price has been rising for the past few months as the company’s molecules have been moving further along the drug pipeline and collaborations with other companies have been entered into. Genzymes and The Medicines Company have decided to partner with Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) for the development of medications.
Revenues for the company were lower in FY2012 as compared to FY 2011 by $16.1 million. Part of the decrease in revenues was due to the completion of the amortization period for the company’s alliance with Roche, which ended in 2012. Overall, BlackRock Advisors has selected a company that is very likely to succeed in the long term.
Good news for stroke patients … and investors
Acorda Therapeutics Inc (NASDAQ:ACOR) is yet another company that has grabbed investors’ attention. Recently BlackRock Advisors have bought over 75,000 shares in this company for about $35.8 million. Very recently this company made headlines by saying that its drug Ampyra helped stroke patients recover their ability to walk during the mid-stage of a clinical trial. This company is focused on the development of therapies for people affected with spinal cord injuries, multiple sclerosis and other nervous system disorders. Ampyra brings in about 90% of the revenues for the company. Shares of this company are on the rise with the positive news brought in by Ampyra.
Other drugs by the company are Zanaflex (for muscle spasm treatment), and a new drug delivery technique by nasal spray for Valium (for anxiety and seizures).
The uniqueness of Acorda comes from the fact that it has high-quality products serving several indications. As I continue my study of the evolution of pharmaceutical companies over the years, I have realized that studying the potential of existing molecules to treat newer indications is a useful and cost-effective R&D approach with greater promise of future yield. Acorda is well on its way along this path.
Conclusion
All in all, the smaller biotech companies are becoming lucrative to large investors due to the strategies they are adopting. I believe that small biotechs have learned a lot from the successes and failures of big biotech and pharma companies. Hence, they are able to introduce flexibility in their business model at an earlier stage of their company’s lifetime, and build on R&D practices that can significantly improve healthcare in the future. This positions them very well for good growth. Also, these very same large pharma and biotech companies the smaller ones learned from are now partnering with them and backing them up in their unique and high-potential efforts.
The article 3 Small Biotechs Top Hedge Funds Are Investing In originally appeared on Fool.com.
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