Dallas, Texas 10/14/2013 (Financialstrend) – On October 7, the development stage bio tech firm Keryx Biopharmaceuticals (NASDAQ:KERX) announced that FDA had accepted its new drug application for testing out Zerenex. The drug maker is seeking FDA green signal to market Zerenex as a treatment for treating patients who undergo dialysis. The drug is expected to help reduce the levels of serum phospohorus which gets accumulated in kidneys of dialysis patients. KERX has gone ahead and substantiated its application with data it has collected from phase 3 trials it had conducted in Japan previously.
On the back of the announcement, the stock of Keryx responded positively. It gained close to 3% in terms of market value during trading on October 7. The market cap of the company had gone up post this announcement but the stock could not sustain the rally. It shed close to 9.68% of its market value over the previous week’s trading and ended October 11 trading with a loss of 0.54% in comparison to previous day close. It was trading at $9.34 per share representing a 318% increase in valuation compared to its 52 week low pricing. It is down 14.4% from its 52 week high valuations.
In spite of the downward sentiments in the immediate past, the share holders of the stock have seen an impressive 235% increase in value over the past 12 months. It has a cash to share ratio of 0.98 for the most recent quarter which indicates ample scope for the drug maker to raise capital to sustain operations till its target drug enters the market. Analysts have a buy on this stock with a target price of $14 by mid 2014. With close to 64% of the total 81 million shares outstanding being held by institutional investors, the shareholders of this stock are looking at long term returns from this stock.