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News of Delayed Medicare Policy Spikes Keryx Biopharmaceuticals (KERX) Stock

By  +Follow March 26, 2014 2:20AM
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Shares in small-cap Keryx Biopharmaceuticals (KERX) showed strength on Wednesday, taking off about an hour after the opening bell and gaining nearly 20 percent. The massive spike, which took shares from $14.40 a share to over $16.85 from 10:26 am to 10:36 am ET by news that the "doc fix" bill includes language for Medicare to delay moving oral-only End-Stage Renal Disease (ESRD) Drugs into the ESRD bundle until 2024. Shares reached highs of $17.29 apiece by early afternoon and stayed above $16.50 for much of the day.

A note sent by Guggenheim Partners to clients at 10:20am included the revelation that the "doc fix" bill currently moving through congress includes a provision delaying the inclusion of ESRD drugs that don't have an IV alternative from the ESRD bundle until 2024. This 8-year delay for moving oral-only ESRD drugs into the bundle comes after a previous 2-year delay bumping the date to 2016 and should be a boon to those companies producing medications falling into the oral-only ESRD category.

The legislation, which has been subject to rushed negotiations as the March 31 expiration of a previous 3-month patch passed in December of last year fast approaches, is scheduled for a house vote tomorrow. Without this "doc fix," doctors participating in Medicare would get hit by a 24 percent reduction in their reimbursements, an ongoing issue that dates back to 1990s legislation targeting federal spending. House Speaker John Boehner stated at a Wednesday press conference that the short-term fix won't affect any negotiations on a long-term solution.

"That does not preclude any work from being done on the long-term fix in terms of how we pay doctors,” he said. “I think we need to take this step first.”

Keryx, which is developing KRX-0502 to treat hyperphosphatemia (an excess of phosphate), a disease common among patients suffering from chronic kidney disease, appears to be one of the companies that should benefit from the delay. The drug is what’s known as a “phosphate-binder,” a group of drugs that have been part of Medicare's focus on its policies for treating ESRD.

The Centers for Medicare and Medicaid Services (CMS) began shifting its PPS for ESRD drugs in 2011. The shift in policy means that payments from Medicare for ESRD treatments will now be “bundled,” offering a single payment through Medicare part B for the entirety of the treatment, including dialysis and oral drugs. This differs from the previous policy of certain medications related to dialysis treatment, like phosphate binders, being paid for separately through Medicare part D.

However, Keryx has a number of other fundamental and technical factors that could be driving the day’s gains. Certainly, the dramatic spike at 10:26 is most likely connected a specific news item, but the stock was up 2.3 percent prior to the big spike and appeared to be climbing. This could be attributed to a rash of “buy” ratings on the stock coming from nine different analysts, with the most recent from Mizuho on March 20 with a price target of $25 a share.

However, technical factors could also be what was driving the price up early and may also have contributed to the size of the big jump at 10:26. The stock had been trading in a fairly defined up channel since mid-October, with a rising support level that was moving largely in tandem with the 50-day SMA.

On March 19, though, the stock started a plunge that had it crossing its 20-day and 50-day SMAs and crashing through support. This selling spree ultimately resulted in a 14-day RSI of 35, where under 30 is traditionally viewed as a sign a stock is oversold, and a 14-day Stochastic RSI of 0.00, well below the 0.20 level traditionally viewed as an indicator shares are oversold.

As such, some rebound for Keryx seemed likely today regardless of any news items and technical factors could have provided additional upward pressure to the buying spree sparked by the rumors about Medicare’s policy delay.

 

Editor's note: Article has been editied since its initial publication. A previous reference to a tweet from Chad Fugere was removed after he contacted Equities.com to clarify the source of his information.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer


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Results for KERX
Stockaholics
20 Apr 15 18:23:54
Our Penny Stock Alert On $OSLH Gained 97% In 3 Days! Big News: http://t.co/VsDv7ywE5E $TSL $KERX $GGAL
Penny Stockington
20 Apr 15 18:12:33
Members Saw Our Penny Stock Picks Gain 1600% In 4 Months! Subscribe Here For New Picks: http://t.co/2dBXHWiAWG $YPF $KERX $ATSG
Stock Dawgzz
20 Apr 15 17:38:17
$OSLH Became One Of The Most Powerful Penny Stocks Last Week! Special Update: http://t.co/rQZs5CWxta $YPF $KERX $ATSG
Stock Rocket
20 Apr 15 17:35:46
Our Stock Pick On $THCZ Is Up 481.54% From Our Initial Release! Major News: http://t.co/bLXWVUwpQ7 $YPF $KERX $ATSG
Stockaholics
20 Apr 15 17:30:38
Our Penny Stock Alert On $OSLH Gained 97% In 3 Days! Big News: http://t.co/VsDv7ywE5E $YPF $KERX $ATSG
Stock Rocket
20 Apr 15 17:28:41
Our Stock Pick On $THCZ Is Up 481.54% From Our Initial Release! Major News: http://t.co/bLXWVUwpQ7 $TSL $KERX $GGAL
StockenheimerSchmidt
20 Apr 15 17:21:20
Platinum Members Saw Our Stock Alerts Gain Over 1600% In 4 Months! Subscribe Here: http://t.co/vy1bjuKyNv $YPF $KERX $ATSG
stockschamp
20 Apr 15 14:11:03
This Guy Is Making Millions! Watch This Video Proof Here At http://t.co/8WvnrVmkBS .. $TSL $KERX $GGAL
Thomas Collins
20 Apr 15 13:36:11
$KERX Keryx Biopharmaceuticals Price Target Lowered to $17.00 at Stifel Nicolaus ... http://t.co/4VLHJPjB6T
Sleek Money
20 Apr 15 12:05:15
Keryx Biopharmaceuticals Price Target Lowered to $17.00 at Stifel Nicolaus $KERX http://t.co/KlDZQa951T
ProVesting
20 Apr 15 12:00:02
$KERX: Keryx Biopharmaceuticals Price Target Lowered to $17.00 at Stifel ...: http://t.co/quBrr8ZkOd
Stock Dawgzz
20 Apr 15 11:05:47
$OSLH Became One Of The Most Powerful Penny Stocks Last Week! Special Update: http://t.co/rQZs5De8kI $TSL $KERX $GGAL
ProTradersNews
20 Apr 15 09:25:01
$KERX: Stifel Nicolaus Thinks Keryx Biopharma's Stock is Going to Recover: http://t.co/apVrPN1WW5
Quantcha
20 Apr 15 08:16:36
Covered Call Alert: KERYX BIOPHARMACEUTICALS $KERX returning up to 40.58% through 18-Sep-2015 http://t.co/pdUJlX1VtB
US Banking News
20 Apr 15 07:28:31
Keryx Biopharmaceuticals PT Lowered to $17.00 $KERX http://t.co/nHqBVgyssp
The Legacy News
20 Apr 15 07:13:03
Stifel Nicolaus Cuts Keryx Biopharmaceuticals Price Target to $17.00 $KERX http://t.co/LJEUbia7C1
Ticker Report
20 Apr 15 07:11:24
Stifel Nicolaus Cuts Keryx Biopharmaceuticals Price Target to $17.00 $KERX http://t.co/0fPku73pwe
stockschamp
20 Apr 15 07:11:03
This Guy Is Making Millions! Watch This Video Proof Here At http://t.co/8WvnrVmkBS .. $YPF $KERX $ATSG
US Consumer News
20 Apr 15 05:14:11
Keryx Biopharmaceuticals's PT cut by Stifel Nicolaus to $17.00. buy rating. http://t.co/4C0pTRd4rt $KERX #KERX
Analyst Ratings
20 Apr 15 05:08:45
Keryx Biopharmaceuticals's PT cut by Stifel Nicolaus to $17.00. buy rating. http://t.co/OdO4ZTya7M $KERX #KERX
StockNewsWires
20 Apr 15 04:02:04
$KERX $CNA: Eye Catching Stocks: Keryx Biopharmaceuticals Inc. (NASDAQ ...: http://t.co/rXZJR6kTCK
Stock Rocket
20 Apr 15 02:29:39
Our Stock Pick On $THCZ Is Up 481.54% From Our Initial Release! Major News: http://t.co/bLXWVUeOrx $TSL $KERX $GGAL
StockenheimerSchmidt
20 Apr 15 02:06:55
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StockenheimerSchmidt
20 Apr 15 01:51:13
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Stock Dawgzz
20 Apr 15 01:44:54
$OSLH Became One Of The Most Powerful Penny Stocks Last Week! Special Update: http://t.co/rQZs5De8kI $YPF $KERX $ATSG
Penny Stockington
20 Apr 15 01:31:11
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Penny Stockington
20 Apr 15 00:59:51
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Stock Rocket
20 Apr 15 00:45:19
Our Stock Pick On $THCZ Is Up 481.54% From Our Initial Release! Major News: http://t.co/bLXWVUeOrx $YPF $KERX $ATSG
Sleek Money
19 Apr 15 05:50:40
Keryx Biopharmaceuticals VP Sells $53,568.00 in Stock $KERX http://t.co/5fNexwu5zU
BreakingStocksNews
19 Apr 15 05:45:04
$KERX: Keryx Biopharmaceuticals VP Sells $53568.00 in Stock (KERX): http://t.co/8lDv3TV2r5
dailystockplays.com
18 Apr 15 07:25:04
CMF Declining http://t.co/Hb9Hki3kaA $GFI $LXP $PCYC $KERX $NAVI $XOMA $GWW $SBH $NCLH $SYT $OVAS $AFA $MLNX $THOR $KEYS $PCLN $ACIW $DTK
StockNewsWires
18 Apr 15 06:20:13
$KERX: Brian Adams Sells 4320 Shares of Keryx Biopharmaceuticals Stock ...: http://t.co/tPWpNToZmn
Breaking News
18 Apr 15 02:11:22
$KERX: Insider Selling: Keryx Biopharmaceuticals VP Brian Adams Sells ...: http://t.co/7deZHRwxuu
BreakingStocksNews
18 Apr 15 00:35:18
$KERX: Keryx Biopharmaceuticals Trading Down 5% Following Insider ...: http://t.co/LmM838NyDf
Sleek Money
18 Apr 15 00:20:17
Keryx Biopharmaceuticals Stock Price Down 5% on Insider Selling $KERX http://t.co/7c7IfsF01Y
ProTradersNews
18 Apr 15 00:15:10
$KERX: Keryx Biopharmaceuticals Stock Price Down 5% on Insider Selling ...: http://t.co/iCwqpPvAb4
The Legacy News
17 Apr 15 21:55:14
Insider Selling: Keryx Biopharmaceuticals VP Brian Adams Sells 4,320 Shares of Stock $KERX http://t.co/cPJs0ywrmh
Breaking News
17 Apr 15 20:35:02
$KERX: Insider Selling: Keryx Biopharmaceuticals VP Sells 4320 Shares of ...: http://t.co/quBIPJFxEI
Ticker Report
17 Apr 15 20:25:43
Insider Selling: Keryx Biopharmaceuticals VP Sells 4,320 Shares of Stock $KERX http://t.co/HaCeNkgZX2
$Stocknewsalerts
17 Apr 15 16:06:32
$KERX ALERT: New Keryx Biopharmaceuticals, Inc. SEC Filing From our Stock News Alerts App
StockNews
17 Apr 15 16:04:04
$KERX - Statement of Changes in Beneficial Ownership (4) http://t.co/6JfAuBPs1o
Stocks News&Markets
17 Apr 15 16:04:02
$KERX - Statement of Changes in Beneficial Ownership (4) http://t.co/mzu9yMl7YH
NASDAQ
17 Apr 15 16:04:02
$KERX - Statement of Changes in Beneficial Ownership (4) http://t.co/7KgJ4SWFh0
StockNewsWires
17 Apr 15 16:04:01
$KERX: New Insider Transaction on KERX by VP and General Counsel: http://t.co/hT1cE5oZ2J
Insider Alerts
17 Apr 15 16:03:13
NEW insider transaction on $KERX reported a moment ago: http://t.co/yMQSLpfrfT
Insider Filings
17 Apr 15 16:02:39
$KERX: Adams Brian sold a net $53,568 in KERYX BIOPHARMACEUTICALS INC. http://t.co/t2NAHB9wsK
Penny Hustlers
17 Apr 15 14:34:17
$KERX has been a buddy of mine for awhile, but that cliff dive today had me jumping too. It was real, it was fun, but #Peace !
Ryan Carson
17 Apr 15 13:35:03
RT @dougheuringaria: JMP $CELG $ARIA $KERX $PCYC http://t.co/GLhedzj5BS
C Mosseri Marlio
17 Apr 15 11:41:16
Lastly, $kerx CKD results should be out in Q4. No oral irons approved for anemia; no phosphate binders approved for CKD. Huge unmet need.
C Mosseri Marlio
17 Apr 15 11:40:08
Formularies save $ on ESA's, IV iron, and especially hospitalizations, so the review process should be overwhelmingly positive. (2) $kerx
				
				
By  +Follow March 26, 2014 2:20AM
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