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
Stockaholics
31 Oct 14 00:36:27
Our Penny Stock Newsletter Alert On MGON Closed up 112.5% Today! Major News: http://t.co/dvxYQnSJab $YPF $KERX $ATSG
Stockaholics
30 Oct 14 22:00:45
Our Penny Stock Newsletter Alert On MGON Closed up 112.5% Today! Major News: http://t.co/dvxYQnSJab $TSL $KERX $GGAL
Alan Brochstein, CFA
30 Oct 14 19:43:13
RT @Mark_Fane: @Invest420 @realwingate $IG, $BDSI, $ERBB, $KERX, $GWPH, $FWDG, $VGPR, $LATF, $USEI $CANN. $CBDS, $MDBX, $CBIS,
Mark Fane
30 Oct 14 19:23:36
@Invest420 @realwingate $IG, $BDSI, $ERBB, $KERX, $GWPH, $FWDG, $VGPR, $LATF, $USEI $CANN. $CBDS, $MDBX, $CBIS,
Mark Fane
30 Oct 14 19:16:20
$IG, $BDSI, $ERBB, $KERX, $GWPH, $FWDG, $VGPR, $LATF, $USEI $CANN. $CBDS, $MDBX, $CBIS, all system Buy picks.
DailyStockPicks
30 Oct 14 18:25:03
Partner Jet $PJT.V is up 183% this week after Q3 release with much more room to increase. Find out why: http://t.co/MEpEjkCm4H $KERX $BCRX
Stockaholics
30 Oct 14 17:31:10
Our Penny Stock Newsletter Alert On MGON Closed up 112.5% Today! Major News: http://t.co/dvxYQnSJab $YPF $KERX $ATSG
MAISA
30 Oct 14 17:13:57
$KERX will be held on Thursday, November 6, 2014 at 8:00 a.m. ET to discuss results for the third quarter of 2014
Stockaholics
30 Oct 14 16:51:23
Our Penny Stock Newsletter Alert On MGON Closed up 112.5% Today! Major News: http://t.co/dvxYQnSJab $TSL $KERX $GGAL
Nameless
30 Oct 14 12:02:26
$kerx nice rally from 13
John Smith
30 Oct 14 11:07:39
$KERX breaking out. $ARIA soon. $AVNR HUGE SQUEEZE! #breakingnews #cnbc $shpg $cmrx $tkmr $ibio $SHPG $wfc #TimCook $bac $s $ctic
Alexander Morris
30 Oct 14 09:23:58
$KERX: At 1DyHIGH=16.52, hits:4, ch:+1.0%, 9:1Accel+, allTFs+, MedFlt:81M, HiPctSht[30%:13d], PrvClGap-[-1.0%], DyVol:292T:0.4x:0.2x
DailyStockPicks
30 Oct 14 06:05:45
#Ebola #stocks $LAKE and $SMED up in pre-market thanks to sales announcements. $KERX investors read: http://t.co/qXqzthBMEE
Stock Moo
30 Oct 14 06:01:58
$kerx: Keryx Biopharmaceuticals, Inc. to Host Conference Call on Third Quarter 2014 Financial Results http://t.co/HHezO2E3pC
BV Healthcare
30 Oct 14 05:06:59
$KERX Keryx Biopharmaceuticals, Inc. to Host Conference Call on Third Quarter 2014 Financial Results.. http://t.co/e4HZIAHZFx
4-traders.com
30 Oct 14 05:05:22
Keryx Biopharmaceuticals : to Host Conference Call on Third Quarter 2014 Financial Results http://t.co/FS8ohqhWcF $KERX
$Stocknewsalerts
30 Oct 14 05:03:35
$KERX Keryx Biopharmaceuticals, Inc. to Host Conference Call on Third Quarter 2014 Financial Results From our Stock News Alerts App
Stockaholics
30 Oct 14 02:23:38
VIICQ Closed up 75% Yesterday! Special Update: http://t.co/8A33lxh1RR $YPF $KERX $ATSG
Stockaholics
30 Oct 14 01:40:27
VIICQ Closed up 75% Yesterday! Special Update: http://t.co/8A33lxh1RR $TSL $KERX $GGAL
Stockaholics
29 Oct 14 22:25:12
$MLCG closed up 166.67% today! Huge News: http://t.co/JxSMla9Afn $YPF $KERX $ATSG
Stockaholics
29 Oct 14 21:38:49
$MLCG closed up 166.67% today! Huge News: http://t.co/JxSMla9Afn $TSL $KERX $GGAL
Stockaholics
29 Oct 14 18:27:45
$MLCG closed up 166.67% today! Huge News: http://t.co/JxSMla9Afn $YPF $KERX $ATSG
Stockaholics
29 Oct 14 17:44:04
$MLCG closed up 166.67% today! Huge News: http://t.co/JxSMla9Afn $TSL $KERX $GGAL
Stockaholics
29 Oct 14 13:49:18
Subscribe to our Penny Stock Newsletter, for the best penny stock picks, for FREE: http://t.co/5DC8vbG515 $TSL $KERX $GGAL
TickerChirp
29 Oct 14 12:46:06
Popular Tweets Relevant to $KERX (Keryx Biopharmaceutical symbol KERX) on 10/29/2014 http://t.co/LdQYB7tIqz
roy vimer
29 Oct 14 11:21:56
$RMTI - my new article aiming $19 http://t.co/w2aroK0bJr … $KERX $VRTX $ALNY $GILD
roy vimer
29 Oct 14 11:14:34
$RMTI - my new article aiming $19 http://t.co/w2aroK0bJr … $KERX $BAX $ALNY $GILD
roy vimer
29 Oct 14 11:11:01
$RMTI - my new article aiming $19 http://t.co/w2aroK0bJr $KERX $FOLD $ALNY $GILD
Stockaholics
29 Oct 14 10:48:38
Subscribe to our Penny Stock Newsletter, for the best penny stock picks, for FREE: http://t.co/5DC8vbG515 $YPF $KERX $ATSG
Stockaholics
29 Oct 14 10:05:56
Subscribe to our Penny Stock Newsletter, for the best penny stock picks, for FREE: http://t.co/5DC8vbG515 $TSL $KERX $GGAL
Stockaholics
29 Oct 14 03:10:21
Major New Penny Stock Pick Coming Today! Get The Exclusive First Look: http://t.co/vVXyqlasuZ $YPF $KERX $ATSG
Stockaholics
29 Oct 14 02:27:45
Major New Penny Stock Pick Coming Today! Get The Exclusive First Look: http://t.co/vVXyqlasuZ $TSL $KERX $GGAL
Stockaholics
28 Oct 14 21:44:36
After 371% Gains Our New Penny Stock Pick Is Coming Tomorrow! Get It Early: http://t.co/Nmnx36zJMR $YPF $KERX $ATSG
Stockaholics
28 Oct 14 21:01:15
After 371% Gains Our New Penny Stock Pick Is Coming Tomorrow! Get It Early: http://t.co/Nmnx36zJMR $TSL $KERX $GGAL
HotKeyTrading
28 Oct 14 20:30:08
Price Declines: $KERX $CPHD $HOLI $KEG $VSH $EME $VTAE $TCO $ZIOP $RPAI $LMNX $LNT $OCR $PEB $ADVS http://t.co/Vv2VEn80mr #nyse #trader
Stockaholics
28 Oct 14 17:52:54
After 371% Gains Our New Penny Stock Pick Is Coming Tomorrow! Get It Early: http://t.co/Nmnx36zJMR $YPF $KERX $ATSG
Stockaholics
28 Oct 14 17:12:24
After 371% Gains Our New Penny Stock Pick Is Coming Tomorrow! Get It Early: http://t.co/Nmnx36zJMR $TSL $KERX $GGAL
C Mosseri Marlio
28 Oct 14 14:55:22
@cancerdocNYC 24% fewer hospitalisations in ESRD patient pop. is not a relevant endpoint? Related abstract available on ASN website. $kerx
Joe McCann
28 Oct 14 10:53:56
$KERX was great for me in '13, but given NCE issues & label not exactly echoing the benefits mgmt touts, isn't $1.5bn + set for a fall?
Dr. Robert MacPhail
28 Oct 14 10:25:11
$KERX looks like a couple of institutions have better ideas as of 11:58am and 12:42pm to be specific. 10% of today's trading in 2 sells.
Stockaholics
28 Oct 14 09:32:30
After 371% Gains A Major New Penny Stock Pick Is Coming: http://t.co/1aBeBJdWkA $YPF $KERX $ATSG
Homegameralert
28 Oct 14 08:56:10
buying $KITE, $ACHN, $ATRS, $BONE, $CDXS, $ADXS, and $KERX, all good small bio plays,into earnings and strong pipeline plays, maybe buyout 2
Stockaholics
28 Oct 14 08:41:46
After 371% Gains A Major New Penny Stock Pick Is Coming: http://t.co/1aBeBJdWkA $TSL $KERX $GGAL
Jeff A
28 Oct 14 08:31:31
Huge runners! MT I on Posted 10/26 "Biotech list been squeezing $ACHN $ALXN $KERX $RCPT $ALNY $CLDX $JAZZ $HZNP and even $MLNX "
DailyStockPicks
28 Oct 14 05:43:51
#virtualreality headsets will be the consumer tech gadget for 2015. $KERX investors can profit from Spectra7 $SPVNF: http://t.co/UGK1Sij9xy
Stockaholics
28 Oct 14 05:27:50
After 371% Gains A Major New Penny Stock Pick Is Coming: http://t.co/1aBeBJdWkA $YPF $KERX $ATSG
Stockaholics
28 Oct 14 00:34:06
After 371% Gains A Major New Penny Stock Pick Is Coming: http://t.co/1aBeBJdWkA $TSL $KERX $GGAL
Stockaholics
27 Oct 14 21:42:32
371% Gains And A New Penny Stock Pick Is Coming Today! Get It Early: https://t.co/jbhQATzxpj $YPF $KERX $ATSG
Stockaholics
27 Oct 14 20:52:07
371% Gains And A New Penny Stock Pick Is Coming Today! Get It Early: https://t.co/jbhQATzxpj $TSL $KERX $GGAL
C Mosseri Marlio
27 Oct 14 19:08:05
@cancerdocNYC You would know better than I but: http://t.co/l2XvF6yptt What about drop in hospitalizations? IV iron is suboptimal IMO. $kerx
				
				
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.