Out Fox The $treet

Our Opportunistic and Growth portfolios aim to capture excess returns, but not without some diversification. Limiting portfolio sizes to 20-30 stocks allows for diversification without getting to levels of diworstification. Hence, the portfolios have always had a few 'risky' biotech stocks. Based on the results of Savient Pharma (SVNT) the rewards have clearly outweighed the risks. See previous post. Oh why didn't I include SVNT in the Opportunistic Portfolio???? Regardless the Growth Portfolio has seen some nice out performance demand on the back of SVNT being up 33%. Also noticed that the other biotechs in those portfolios have been perking up of late. All 3 stocks have seemed alot cheaper then the risk involved. Rigel Pharma (RIGL) and Cephalon (CEPH) have seen bullish trading of late. Not being predisposed to investing in this sector, we just found the valuations too compelling. RIGL is a clinical-stage drug development company that discovers and develops novel, sm...

This morning Rigel Pharma ( RIGL ) reported results from its Phase IIB study on once daily oral medicine for Rheumatoid Arthritis ( RA ). The results showed that R788 was helpful for most patients with a minor side effect on some patients of higher blood pressure. RIGL remains a favorite high risk biotech play for Stone Fox. The analysts continue with the positive comments and targets in the $30s. We'll likely stay on board for at least the mid $20s. The stock was trading in the $13s after this news so thats a significant gain from here. RIGL theflyonthewall.com: Rigel Pharma's R788 will be partnered in next few months, say Rodman & Renshaw Following positive R788 positive Ph IIb TASKi2 clinical trial results, Rodman & Renshaw said the drug will be partnered in the next few months. Shares are Outperform rated with a $33 price target. 08:13 EDT RIGL theflyonthewall.com: Rigel Pharma positive data could lead to lucrative deal, says Thomas Weisel Thomas Weisel believes...

RIGL stock is down 8% now after a big downgrade from RBC. Still haven't found the info, but its amazing that after all this time and access to information that analysts can have such a huge impact on a stock. So far RIGL is holding the support that has existed in January and it's bounced up since the opening. Positive signs that buyers were happy with this price. Might turn out to be the typical contraian play. Ah, the analysts play such games.

Rigel (RIGL) is an intriguing biotech stock. It has the potential for a blockbuster drug in RA and the biotech sector is compelling with the big pharma companies on the prowl. PFE would've been wiser to buy up somebody like Rigel (RIGL) or some other favorites like Onyxx Pharma (ONXX) or Savient (SVNT). If you want to develop a pipeline, then why not buy all 3 and get access to several potential blockbusters. Regardless, these companies are solid without them. Not being a biotech expert, check out this story on Rigel from Hammer Stock . Rigel’s lead drug, R788, is currently being evaluated in two comparative trials in patients with rheumatoid arthritis (RA), a $14 billion indication. During most of 2008, R788 was considered to be one the most promising drugs in the biotech industry, but an update at last year’s ACR meeting raised doubts regarding the safety profile of R788, as reviewed in my recent article on Rigel. According to the company, the safety data from the ACR meeting d...