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PharmAthene (AMEX: PIP)
When this small biotech recently decided to raise $15 million, insiders and other large shareholders didn’t hesitate to pull out their checkbooks. (That qualifies as an insider buy according to those that watch insider moves). Their bullishness is understandable. For starters, the company looks increasingly likely to prevail in a lawsuit against SIGA Technologies (Nasdaq: SIGA) regarding marketing rights to a drug that treats smallpox — yielding a potential massive windfall. (SIGA recently received a $2.8 billion order from Uncle Sam, and PharmAthene may be legally due some of that money due to a 2006 agreement that is being contested).
Secondly, PharmAthene is also vying to become a key provider of a next generation anti-anthrax drug to the U.S. military. The U.S. government has been helping to fund development of this drug, which would likely sell for a third of the price of an existing drug sold by Emerging BioSciences (AMEX: EBS).
A positive resolution to ...