logo  
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

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

By  +Follow March 26, 2014 2:20AM
Share:
Tickers Mentioned:

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.


Liked What You Read? Join Equities.com as a contributor and get eyeballs on your content FOR FREE!

Results for KERX
Hung Tran, MS, MD
21 Dec 14 17:37:34
"The best stock to buy maybe the one you already own." - Peter Lynch $MNKD $ICPT $NHTC $SNY $REGN $ARNA $CYAN $JAZZ $NBIX $ITMN $KERX $KORS
Stockaholics
21 Dec 14 15:45:48
Platinum Memberships Rose, After 528% Gains On Penny Stocks, In One Month! Big Update: http://t.co/2W3yKD2d5Q $YPF $KERX $ATSG
Stockaholics
21 Dec 14 15:00:08
Platinum Memberships Rose, After 528% Gains On Penny Stocks, In One Month! Big Update: http://t.co/2W3yKD2d5Q $TSL $KERX $GGAL
Stockaholics
21 Dec 14 11:43:11
Platinum Memberships Rose, After 528% Gains On Penny Stocks, In One Month! Big Update: http://t.co/2W3yKD2d5Q $YPF $KERX $ATSG
HotKeyTrading
21 Dec 14 11:30:06
Unusual Options Activity: Puts: $UA $NSC $ESRX $CCL $CBST $CBI $DO $KERX $ATVI $SVXY $SU $WLL $JD $LINE $BKW http://t.co/Vv2VEnpBuv #mkt
HotKeyTrading
20 Dec 14 23:30:06
Unusual Options Activity: Puts: $UA $NSC $ESRX $CCL $CBST $CBI $DO $KERX $ATVI $SVXY $SU $WLL $JD $LINE $BKW http://t.co/Vv2VEnpBuv #stocks
Stockaholics
20 Dec 14 17:55:25
Platinum Memberships Rose, After 528% Gains On Penny Stocks, In One Month! Big Update: http://t.co/2W3yKD2d5Q $TSL $KERX $GGAL
Stockaholics
20 Dec 14 14:38:27
Platinum Memberships Rose, After 528% Gains On Penny Stocks, In One Month! Big Update: http://t.co/2W3yKD2d5Q $YPF $KERX $ATSG
Stockaholics
20 Dec 14 13:53:48
Platinum Memberships Rose, After 528% Gains On Penny Stocks, In One Month! Big Update: http://t.co/2W3yKD2d5Q $TSL $KERX $GGAL
HotKeyTrading
20 Dec 14 11:30:06
Unusual Options Activity: Puts: $UA $NSC $ESRX $CCL $CBST $CBI $DO $KERX $ATVI $SVXY $SU $WLL $JD $LINE $BKW http://t.co/TRx9EnjwT5 #spy
Stockaholics
20 Dec 14 01:07:58
Platinum Memberships Rose, After 528% Gains On Penny Stocks, In One Month! Big Update: http://t.co/2W3yKD2d5Q $YPF $KERX $ATSG
Stockaholics
20 Dec 14 00:23:01
Platinum Memberships Rose, After 528% Gains On Penny Stocks, In One Month! Big Update: http://t.co/2W3yKD2d5Q $TSL $KERX $GGAL
HotKeyTrading
19 Dec 14 23:30:07
Unusual Options Activity: Puts: $UA $NSC $ESRX $CCL $CBST $CBI $DO $KERX $ATVI $SVXY $SU $WLL $JD $LINE $BKW http://t.co/TRx9EnjwT5 #nyse
Stockaholics
19 Dec 14 20:57:45
Platinum Memberships Rose, After 528% Gains On Penny Stocks, In One Month! Big Update: http://t.co/2W3yKD2d5Q $YPF $KERX $ATSG
Catalena Antill
19 Dec 14 17:16:13
Short Squeeze Alerts $GPRO $OUTR $AMBA $SRPT $XONE $SCTY $INVN $KERX $ZU
Stockaholics
19 Dec 14 16:24:54
Platinum Memberships Rose, After 528% Gains On Penny Stocks, In One Month! Big Update: http://t.co/2W3yKD2d5Q $TSL $KERX $GGAL
HotKeyTrading
19 Dec 14 11:30:06
Unusual Options Activity: Puts: $ESRX $CCL $CBST $CBI $DO $KERX $ATVI $SVXY $SU $WLL $JD $LINE $BKW $MS $GRPN http://t.co/TRx9EnjwT5 #stock
Penny Stock Secret
19 Dec 14 10:43:31
Make Money With BitCoin Every Single Day More Info Here http://t.co/SVqoMlijqL .. $TSL $KERX $GGAL
Stockaholics
19 Dec 14 10:24:48
Platinum Memberships Rose, After 528% Gains On Penny Stocks, In One Month! Big Update: http://t.co/2W3yKD2d5Q $YPF $KERX $ATSG
Stockaholics
19 Dec 14 09:43:53
Platinum Memberships Rose, After 528% Gains On Penny Stocks, In One Month! Big Update: http://t.co/2W3yKD2d5Q $TSL $KERX $GGAL
Adam Feuerstein
19 Dec 14 07:04:17
@hamounk I gave myself an incomplete on $KERX since launch really kicks off next year. See bottom of report card.
Hamoun
19 Dec 14 06:39:34
@adamfeuerstein what about $kerx which you love to bash?
Penny Stock Secret
19 Dec 14 03:43:15
Make Money With BitCoin Every Single Day More Info Here http://t.co/SVqoMlijqL .. $YPF $KERX $ATSG
Ruzhen Li
19 Dec 14 03:06:39
RT @valuewalk: Hedge Funds Get Boost From Healthcare In 2014 http://t.co/zjH4tC7L5u $ACT $AGN $HLF $HCA $THC $KERX http://t.co/PAOaJnU7NQ
HotKeyTrading
18 Dec 14 23:30:07
Unusual Options Activity: Puts: $CBI $DO $KERX $ATVI $SVXY $SU $WLL $JD $LINE $BKW $MS $GRPN $AMBA $FXE $XRT http://t.co/TRx9EnjwT5 #dow
Matt finston
18 Dec 14 12:51:44
Follow Baupost: $LNG, $KERX, $FWP, $ATRA, $PRTK $AVEO
Stockaholics
18 Dec 14 11:31:52
Platinum Memberships Rose, After 528% Gains On Penny Stocks, In One Month! Big Update: http://t.co/2W3yKD2d5Q $YPF $KERX $ATSG
HotKeyTrading
18 Dec 14 11:30:07
Unusual Options Activity: Puts: $CBI $DO $KERX $ATVI $SVXY $SU $WLL $JD $LINE $BKW $MS $GRPN $AMBA $FXE $XRT http://t.co/Vv2VEnpBuv #spy
Stockaholics
18 Dec 14 10:47:52
Platinum Memberships Rose, After 528% Gains On Penny Stocks, In One Month! Big Update: http://t.co/2W3yKD2d5Q $TSL $KERX $GGAL
HumbleBioTrader
18 Dec 14 09:25:02
RT @valuewalk: Hedge Funds Get Boost From Healthcare In 2014 http://t.co/zjH4tC7L5u $ACT $AGN $HLF $HCA $THC $KERX http://t.co/PAOaJnU7NQ
Emory Redd
18 Dec 14 09:24:44
RT @valuewalk: Hedge Funds Get Boost From Healthcare In 2014 http://t.co/zjH4tC7L5u $ACT $AGN $HLF $HCA $THC $KERX http://t.co/PAOaJnU7NQ
ValueWalk
18 Dec 14 09:24:16
Hedge Funds Get Boost From Healthcare In 2014 http://t.co/zjH4tC7L5u $ACT $AGN $HLF $HCA $THC $KERX http://t.co/PAOaJnU7NQ
ProVesting
18 Dec 14 06:48:06
$WCC $KERX: Market Wrap Up: Petroleo Brasileiro Petrobras (NYSE:PBR ... http://t.co/LH67qV4qZC http://t.co/9VtTUQW5NC
Stockaholics
18 Dec 14 06:07:43
Platinum Memberships Rose, After 528% Gains On Penny Stocks, In One Month! Big Update: http://t.co/2W3yKD2d5Q $TSL $KERX $GGAL
Stockaholics
18 Dec 14 00:41:43
Platinum Memberships Rose, After 528% Gains On Penny Stocks, In One Month! Big Update: http://t.co/BuDJZVQmcq $YPF $KERX $ATSG
Stockaholics
17 Dec 14 23:57:49
Platinum Memberships Rose, After 528% Gains On Penny Stocks, In One Month! Big Update: http://t.co/2W3yKD2d5Q $TSL $KERX $GGAL
HotKeyTrading
17 Dec 14 23:30:07
Unusual Options Activity: Puts: $DO $KERX $ATVI $SVXY $SU $WLL $JD $LINE $BKW $MS $GRPN $AMBA $FXE $XRT $RAD http://t.co/Vv2VEnpBuv #dow
TickerChirp
17 Dec 14 21:24:03
The Most Popular in Twitter About $KERX (Keryx Biopharmaceutical symbol KERX) on 12/18/2014 http://t.co/a9kmNu0isB
bioILLOGICAL
17 Dec 14 18:04:51
RT @SmarterAnalyst: $KERX Cowen Initiates Outperform On Keryx Biopharmaceuticals, Sees 64% Upside http://t.co/haGvMAqSj0
DailyStockPicks
17 Dec 14 16:06:01
$ECIG buyout target of $0.50. 400% upside. Positive EBITDA and $200MM revenue in 2015 $GBX $KERX $REGN traders read: http://t.co/FpfORFAs20
Stockaholics
17 Dec 14 13:19:43
Platinum Memberships Rose, After 528% Gains On Penny Stocks, In One Month! Big Update: http://t.co/2W3yKD2d5Q $YPF $KERX $ATSG
Penny Stock Secret
17 Dec 14 13:16:08
The Stock Picking Service of 2014 More Info Here http://t.co/SVqoMlijqL ... $TSL $KERX $GGAL
Matt finston
17 Dec 14 13:03:01
Also forgot $PRTK 14%. $ATRA 23% two of the new Baupost biotech picks http://t.co/1qmWuynxyb also like $FWP $KERX $AVEO
Stockaholics
17 Dec 14 12:32:15
Platinum Memberships Rose, After 528% Gains On Penny Stocks, In One Month! Big Update: http://t.co/2W3yKD2d5Q $TSL $KERX $GGAL
Tweed
17 Dec 14 12:06:49
$KERX failing $14 test multiple times today.
HotKeyTrading
17 Dec 14 11:30:07
Unusual Options Activity: Puts: $DO $KERX $ATVI $SVXY $SU $WLL $JD $LINE $BKW $MS $GRPN $AMBA $FXE $XRT $RAD http://t.co/Vv2VEnpBuv #dow
Man of the Market
17 Dec 14 10:45:46
@JohnConaway do you see $KERX dropping below 12 by January?
Penny Stock Secret
17 Dec 14 06:14:31
The Stock Picking Service of 2014 More Info Here http://t.co/SVqoMlijqL ... $YPF $KERX $ATSG
dougheuring
17 Dec 14 06:09:23
RT @bradloncar: $TGTX added $STML's COO to their board. He goes back to $KERX.
Raj R
17 Dec 14 05:41:27
@bradloncar U mean former $KERX Thx
				
				
By  +Follow March 26, 2014 2:20AM
Share:

Comments

 

blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.