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Researchers implicate suspect in heart disease linked to diabetes … – Science Daily

Posted: February 22, 2017 at 10:42 pm

People with diabetes are at high risk of developing heart disease. Despite knowing this, scientists have struggled to trace the specific biology behind that risk or find ways to intervene. Now, UNC School of Medicine researchers have hunted down a possible culprit -- a protein called IRS-1, which is crucial for the smooth muscle cells that make up veins and arteries.

According to a study published in the Journal of Biological Chemistry, too little of IRS-1 causes cells to revert to a "dedifferentiated" or stem-cell like state, and this may contribute to the buildup of plaque in the heart's arteries, a condition known as atherosclerosis, which increases the risk of heart attack, stroke, and other forms of heart disease.

"When diabetes is poorly managed, your blood sugar goes up and the amount of this protein goes down, so the cells become subject to abnormal proliferation," said senior author David R. Clemmons, MD, Sarah Graham Kenan Professor of Medicine at the UNC School of Medicine. "We need to conduct more studies, but we think this cell pathway may have significant implications for how high blood glucose leads to atherosclerosis in humans."

The research could bring scientists one step closer to finding drugs to help stave off heart disease in people with diabetes, who are twice as likely to have heart disease or experience a stroke, as compared to people without diabetes. People with diabetes also tend to experience major cardiac events at a younger age.

The study focused on the cells that form the walls of veins and arteries, known as vascular smooth muscle cells. The main function of these cells is to contract whenever the heart beats, helping to push oxygen-rich blood to the body's tissues. When plaque builds up along the arterial walls, these cells gradually lose their ability to contract.

In their previous work, Clemmons and colleagues discovered that diabetes can trigger an abnormal cell signaling pathway that causes vascular smooth muscle cells to proliferate, which contributes to atherosclerosis. But their attempts to correct the abnormal signaling pathway didn't seem to completely solve the problem, leading them to suspect another factor.

In the new study, the team found that IRS-1 acts as an inhibitor of the abnormal signaling pathway thereby keeping the vascular smooth muscle cells differentiated, or specialized. In the absence of IRS-1, the cells revert to a stem-cell like state, which in turn activates the abnormal signaling pathway and promotes cell proliferation.

In people with diabetes, the presence of IRS-1 is strongly influenced by how well -- or how poorly -- blood sugar is kept in check. Previous studies have shown that patients who frequently or consistently have high blood sugar show dramatic reductions in IRS-1. The new study is the first to link this reduction with a predisposition for heart disease.

"The study suggests that you can't just inhibit the abnormal signaling, which we've already figured out how to do," Clemmons said. "Our work suggests you probably have to restore the normal signaling pathway, at least to some extent, in order to completely restore the cells to normal cell health, differentiation, and functioning."

As a next step, the Clemmons lab will look for things that might stimulate the synthesis of this protein even in the presence of high blood glucose.

To prove that IRS-1 acts as a brake on the abnormal signaling pathway that leads to cell proliferation, the team conducted experiments in three different types of mice: healthy mice, diabetic mice, and nondiabetic mice that were genetically engineered to produce no IRS-1. The scientists made a small incision in the blood vessels of the animals and then watched to see how the vascular smooth muscle cells reacted. In healthy mice, the incision stimulated wound healing but little cellular proliferation. In both the diabetic animals and the nondiabetic IRS-1 deficient animals, the researchers observed a marked increase in abnormal cellular proliferation.

The findings suggest that it may be possible to counteract the deleterious effects of high blood sugar on atherosclerosis by developing drugs that boost IRS-1.

Clemmons said the activities of IRS-1 might also play a role in other diabetes complications, such as eye and kidney disease. The researchers plan to study those potential links.

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Shoshone News Press – Columns, Giving the Gift of Life ~ National … – Shoshone News Press

Posted: February 21, 2017 at 11:45 pm

February 18, 2017 at 1:00 am | By Lisa Turpin Special to the News-Press

National Donor Day, observed on Feb. 14, is a great time to register as an organ, eye, and tissue donor or to make an appointment to donate blood or platelets.

What could show more love on Valentines Day than the act of giving ones body to help another?

Whether you are a living donor of blood products, stem cells, kidney or liver, register with your state as an organ donor, or make the decision for your loved one to be a donor, you are truly giving the gift of life.

Nationally, more than 119,000 people are waiting for an organ transplant, including 2,091 children.

That doesnt include the number waiting for a bone marrow (stem cell) matched donor which is much more complicated to find.

Significant progress continues in the advancement of transplantation medicine with goals of lengthening life spans, restoring function, appearance, and quality of life.

But it still takes the generosity of donors and their loved ones to make a transplant possible.

Claudia Swigart of Pinehurst believes the true value of organ donation is the gift of time.

In her case, fifteen years with her husband Wendell that she, their five combined children, thirteen grandchildren, and twelve great-grandchildren may not have had.

Wendell and his three siblings all had Polycystic Kidney Disease (PKD), an inherited condition causing cysts to form in the kidney causing damage and kidney failure.

Wendell worked in the mine here in the Valley, shares Claudia.

He found out he had Polycystic Kidney Disease when he was thirty-four and he was careful, he exercised, ate healthy and never smoked. He didnt have any kidney problems until he was sixty-three and had to have open heart surgery.

The surgery was hard on Wendell and his lungs collapsed, he nearly died and it put his kidneys in distress.

He started dialysis after that and was eventually put on the kidney transplant list to receive a transplant at Sacred Heart Medical Center.

The dialysis center in Pinehurst had not opened, so Claudia drove Wendell to Coeur dAlene two times a week for three-hour treatments.

Claudia shared, I am so thankful they opened a dialysis center here. Its exhausting enough to be on dialysis without the traveling.

But there is more to this story.

We always liked telling everyone we could about what happened because we knew God had His hand in the plan, explains Claudia.

They normally traveled to Arizona in their camper for the winter.

Wendell would arrange to have dialysis at the center in Arizona instead of Coeur dAlene.

Well, in 2001 we were planning on leaving so Wendell called to remove himself from the transplant list while we were gone. But, when he called to arrange dialysis at the center in Arizona, they were full! said Claudia.

Since Wendell couldnt have dialysis in Arizona, they were forced to stay home which meant he remained on the transplant list.

Just a few weeks later we got the call! Claudia exclaimed.

Wendell was told he had a matched kidney on the way from a donor in Alaska.

Wendell was sixty-five at the time and he asked if there were any younger people waiting for transplants, anyone still raising young kids who needed it more than he did. His doctor knew he was that kind of man and firmly told him that it was Wendells kidney and he was taking it!

Wendells kidney was such a good match he never experienced any problems or symptoms of rejection.

The transplant coordinators said that the Swigarts could write a letter to the donors family in Alaska if they wanted to have communication with them or thank them.

We wrote a letter to the family two months later and Wendell told them he would take real good care of the kidney, Claudia said.

Wendell did take great care of himself but unfortunately fought esophageal cancer unrelated to his kidneys and passed away in March of 2016 at the age of 80.

The donors family never wrote back, so they do not know the identity of the donor, but Claudia and Wendell were glad they sent the thank-you letter.

We went back to Arizona the year after the transplant and didnt have to worry about dialysis any more. We may never have gotten to do that and he sure wouldnt have had the life he had without the generosity of the donor and their family.

Wendell Swigart had 15 extra quality years with his bride and they celebrated their forty-sixth wedding anniversary before his passing.

Statistics say that only three out of 1,000 people who die are candidates for organ donation, and thats if their families agree to donation.

Even if you register as a donor, it is still up to your family to make the final decision.

Making your family aware that you want to be a donor is the most important thing you can do. For more information visit http://www.donatelife.net or http://www.Organize.org.

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On Second Attempt, SpaceX Launches Rocket At NASA’s Historic Pad – KNAU Arizona Public Radio

Posted: February 21, 2017 at 11:45 pm

To paraphrase an age-old saying: If at first you don't succeed, well, dust off the historic launch pad and try another liftoff.

Not as catchy as the original, perhaps, but certainly fitting for SpaceX, which succeeded Sunday on its second launch attempt at NASA's Launch Complex 39A, at Kennedy Space Center in Florida. The first attempt, scrubbed Saturday with just 13 seconds before liftoff, was foiled by concerns over an anomaly discovered in the rocket's steering system.

The issue was "99% likely to be fine," Elon Musk, founder of the private space company, tweeted Saturday, "but that 1% chance isn't worth rolling the dice. Better to wait a day."

On Sunday, however, the launch went smoothly. Not only did SpaceX's Falcon 9 rocket lift off without a hitch, its first stage also returned to land right back on a platform on Earth. Shortly afterward, the Dragon spacecraft it was carrying detached as planned from the rocket.

While there's nothing particularly rare about the 5,500 pounds of cargo strapped into that spacecraft which is destined for the International Space Station the pad it took off from has quite a backstory: Launch Complex 39A was the site that sent the first humans to the moon in the 1969 Apollo 11 mission.

It was the pad for a number of NASA's most important missions from its early days sending people to space, to the three decades of the space shuttle program.

Now the pad, which hadn't been used since that program ended in 2011, is getting dusted off for a new era "as a spaceport open for use by public and commercial missions to space," NPR's Rae Ellen Bichell reported for our Newscast unit.

As we noted Saturday, NASA says SpaceX's resupply mission packs supplies and materials for more than a few experiments:

"Science investigations launching on Dragon include commercial and academic research investigations that will enable researchers to advance their knowledge of the medical, psychological and biomedical challenges astronauts face during long-duration spaceflight.

"One experiment will use the microgravity environment to grow stem cells that are of sufficient quality and quantity to use in the treatment of patients who have suffered a stroke. A Merck Research Labs investigation will test growth in microgravity of antibodies important for fighting a wide range of human diseases, including cancer."

Reuters reports that NASA is also carefully monitoring the launch by SpaceX, which it "hired to fly cargo to the station after the shuttle program ended." The news service says NASA wants "to learn more about SpaceX's operations before it clears the company to fly NASA astronauts on SpaceX rockets."

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News Scan for Feb 20, 2017 – CIDRAP

Posted: February 21, 2017 at 11:42 pm

Officials confirm 6 new MERS cases, 1 death in Saudi Arabia

Over the past 4 days, Saudi Arabia's Ministry of Health (MOH) reported a flurry of MERS cases, one of them fatal and all involving men.

The MOH said on Feb 17 that a 74-year-old Saudi man from Jeddah was in critical condition after presenting with symptoms of MERS-CoV (Middle East respiratory syndrome coronavirus) infection. The man had direct contact with camels, and the MOH listed the patient as deceased in an update yesterday. The update said he had a preexisting condition.

Also yesterday, the MOH reported two more cases in men who had direct contact with camels. A 57-year-old from Jeddah and a 67-year-old from Riyadh are both listed in critical condition.

Finally today, the MOH announced three more new cases in Saudi men. A 63-year-old from Muhayil is in critical condition and had direct contact with camels. A 49-year-old from Riyadh is also in critical condition. The source of his infection is listed as "primary," meaning it is unlikely he contracted the virus from another person, but camel contact is not mentioned. And a 61-year-old from Jeddah with MERS is in stable condition. His infection is also listed as primary.

The cases raise the country's MERS total to 1,563 cases, including 650 deaths. Eleven patients are still being treated for the disease. Feb 17 MOH report Feb 19 MOH report Feb 20 MOH report

A new study in the Journal of the Pediatric Infectious Diseases Society reports high rates of antimicrobial resistance in Indian neonatal and pediatric bloodstream infections.

The meta-analysis of 82 papers on antibiotic resistance in Indian children published from 2000 through 2015 included a total of 50,545 blood cultures, with the majority of bloodstream infections (78.7%) being reported from neonatal intensive care units. Among the 72 studies that reported gram-positive bacteria, the median percentage of gram-positive bacteria was 29.2%. In the 81 studies that reported on gram-negative bacteria, the median percentage among all reported positive cultures was 61%. Staphylococcus aureus was found to be the most common gram-positive isolates (median, 14.7%) and Klebsiella pneumoniae was found to be the most common gram-negative isolate (median, 26%).

Fifty percent of the S aureus isolates were methicillin resistant, with high resistance for S aureus to erythromycin (53%), cefotaxime (57%), and cotrimoxazole (57.7%) also noted. High levels of resistance were reported in K pneumoniae to ampicillin (95.2%) and cephalosporins (over 60%). After age stratification, the median resistance of common gram-negative pathogens to the World Health Organization-recommended combination of ampicillin and gentamicin for the treatment of neonatal sepsis was found to be extremely high (K pneumoniae/ampicillin 95.9%; K pneumoniae/gentamicin 75%; Escherichia coli/ampicillin 92.9%; E coli gentamicin 55.6%), with high resistance to cephalosporins also noted.

The authors note that while national guidelines for antimicrobial use have been launched in India, the study highlights a need for similar guidelines in neonates and children. More importantly, they write, "the awareness about the magnitude of antibiotic resistance and the essence of rational antibiotic use needs to be highlighted more urgently among practicing physicians and families." Feb 18 J Pediatric Infect Dis Soc study

The World Organization (WHO) said today that 11 cases of Seoul virus, a disease transmitted by rats, have been identified in the United States since December. Two of the 11 patients have been hospitalized, and all cases have been tied to rat-breeding practices. This is the first known Seoul outbreak connected to pet rats in the United States.

The US Centers for Disease Control and Prevention reported eight US Seoul virus cases on Jan 24.

So far people in Wisconsin, Minnesota, and Colorado have tested positive for the disease, which is a rare type of hantavirus that is transmitted from rats to humans through urine, droppings, or saliva of infected rodents, or after exposure to dust from their nests or bedding. The disease is not transmitted from person to person, and no treatment exists for the virus. Rarely, hemorrhagic fever with renal syndrome can develop.

All of the cases have been tied to ratteries or home pet rat-breeding sites. According to the WHO, follow-up investigations indicate that infected rats may have been distributed or received in Alabama, Arkansas, Colorado, Illinois, Indiana, Iowa, Louisiana, Michigan, Minnesota, Missouri, North Dakota, South Carolina, Tennessee, Utah, and Wisconsin. All affected facilities are limited to the pet rat trade. Feb 20 WHO report Jan 25 CIDRAP News scan on CDC report

Three new studies published today look at how Zika spread so rapidly in the Americas, and why and how the virus causes significant brain damage and microcephaly in children.

Authors writing in bioRxiv, a preprint server, generated 100 Zika virus genomes in an effort to understand how and why the virus spread so rapidly in 2015 and 2016. They found the samples had great genomic diversity, and dating analysis showed that four clades of the virus circulated in early- to mid-2015, a full year before the first detected case in several countries, including Peru and United States (in Florida). The study highlights the difficulties of Zika surveillance in countries where other flaviviruses also circulate.

A cell-culture study in Stem Cell Reports helps explain why Zika virus can cause microcephaly, or small head circumference, in infants. Scientists from the University of Texas Medical Branch at Galveston (UTMB) said that microcephaly occurs when the Zika virus attacks a developing fetus's stem cells. The authors discovered that the Asian, but not African, lineage of Zika viruses causes the stem cells to stop proliferating in the developing fetus.

"We discovered that the Asian lineage Zika virus halted the proliferation of brain stem cells and hindered their ability to develop into brain nerve cells," said Ping Wu, MD, PhD, senior author on the study and UTMB professor in the Department of Neuroscience & Cell Biology, in a press release from UTMB. "This difference seems to be linked with a Zika-induced change in global gene expression pattern, it remains to be seen which genes are responsible."

Finally today, JAMA Pediatrics published the results of a September 2016 workshop sponsored by the Eunice Kennedy Shriver National Institute of Child Health and Human Development and the National Institutes of Health to identify the key components of caring for children born with Zika-related microcephaly and other complications.

Many children, experts agree, may not have microcephaly at birth but may develop neurologic disorders because of prenatal Zika infection. Further study will be needed to anticipate and predict outcomes for children who were exposed, the experts said. Feb 20 bioRxiv study Feb 20 Stem Cell Reports study Feb 20 UTMB news release Feb 20 JAMA Pediatrics study

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Minuteman HS Receives Biotechnology Lab Grant – Patch.com

Posted: February 21, 2017 at 11:42 pm


Patch.com
Minuteman HS Receives Biotechnology Lab Grant
Patch.com
From Minuteman HS:Minuteman High School has landed another major grant from the Massachusetts Life Sciences Center to help upgrade its Biotechnology program. The $108,172 competitive grant will enable the school to outfit its Biotechnology lab with ...

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MPs clash with biotechnology researchers over GMO ban | The Star … – The Star, Kenya

Posted: February 21, 2017 at 11:42 pm

MPs on Tuesday clashed with biotechnology researchers over the lifting of the GMO ban.

The law makers dismissed a call to have the ban lifted and called for development of home grown biotechnology solutions rather than imposing "foreign ideologies".

Our researchers should focus on home grown technologies that address some of the challenges farmers are facing such as aflatoxin, drought tolerant crop varieties and the stem borer pest, said Agriculture Parliamentary committee chair Noor Mohammed.

He assured local scientists that as long as they focus on need based research, the committee will lobby the government to allocate more resources.

Mohammed made the remarks during a consultative meeting between the committee and biotechnology stakeholders.

He noted that there has not been any scientific evidence on the safety of GMOs, or any guarantee that it can offer a solution to food insecurity in the country.

Read: University students want government to issue licence of GMO maize

Also read: State launches GMO labelling mark amid jitters of effect on existent ban

There is no research in the world specifically stating on the safety of the technology. Let any scientist give evidence in Kenya own up and that GMO is safe for human consumption, he said.

Mohammed stated that MPs remarks should not be construed to mean that the political class in the country is against the introduction of GMO, but warned the researchers and other experts against issuing conflicting statements.

He said all the Parliamentary committees - health, agriculture, environment, education - and all the biotechnology researchers need to work together with a view to providing a common approach regarding the issue.

Dr Margaret Karembu emphasised on the need by the government to allow application of GMO as one of the tools to taming food insecurity and enhancing agricultural productivity.

Any country that does not give opportunity to researcher will forever rely on other peoples products. GMOs have been proven safe by the World Health Organization and other global biotechnology players, said Karembu.

Willy Tonui, the National Biosafety Authority CEO, assured Kenyans that there is no GMO product in the market and that the government is vigilant in monitoring all the foreign materials that are being imported in the county.

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Flourescent biotechnology for high lighting solid cancer for more complete surgical removal – Next Big Future

Posted: February 21, 2017 at 11:42 pm

With five U.S. patents issued and dozens more filed and pending around the world, On Target Laboratories LLC is working to advance its revolutionary fluorescent imaging technology that could help surgeons pinpoint and remove more cancerous tissues than has ever been possible while preserving more healthy tissue for patients.

Headquartered at Purdue Research Park of West Lafayette, the company is developing a series of molecules, which, when administered intravenously, show promise in targeting many types of cancer cells, said Dr. Sumith Kularatne, On Targets vice president of research and development.

In addition to our current U.S. patents, we have 11 more either filed or pending in the U.S., Kularatne said. We have another 33 patents pending worldwide. These patents are very important in helping us move our discoveries to the public where they can help people.

These molecules carry a fluorescent dye and target diseased cells, including cancer, enabling surgeons to better diagnose and remove the disease while avoiding collateral damage to healthy tissue such as nerves.

OTL38 is a novel compound consisting of a folic acid-targeting molecule, or ligand, linked to a near-infrared dye. Following current clinical trial protocols, OTL38 is injected two hours before surgery and is intended to bind to diseased tissue, including several cancers, involving lung, ovarian, and renal. The goal of this technology is to allow the surgeon to see hard-to-detect, small cancer lesions or diseased lymph nodes that might otherwise be missed through the use of a NIR (near-infrared) camera. OTL ligands are designed to enhance the view in real time, and if proven successful, we believe may be an important addition to image-guided surgery.

We have a very robust portfolio of intellectual property (IP), said Martin Low, the companys chief executive officer. We believe, with this proprietary technology, we will enable surgeons in removing any solid tumor cancer.

In addition to cancer, On Target technology has shown promise in targeting infectious diseases and inflammatory diseases.

One of the patents issued for OTL38, On Targets primary molecule, is for the targeting of inflammatory diseases. Another pending patent is for the targeting of some infectious diseases.

In addition to OTL38, On Targets other molecules include: OTL78 which has four patents pending. Its shown promise for prostate, brain, liver, breast and colorectal cancers. OTL81 which has a pending patent. Its shown promise for gastric and thyroid cancers. OTL338 which has a pending patent. Its shown promise for pancreatic, colorectal and kidney cancers as well as tumors under hypoxic conditions. OTL228 which has three patents pending. Its shown promise for ovarian, lung, breast, pituitary and other cancers as well as rheumatoid arthritis, inflammatory bowel disease and atherosclerosis.

On Targets patenting process has moved very quickly due to the strength of the science involved as well as the level of communication between the science and legal teams, Kularatne said.

Normally the patenting process can take years. But our initial five patents were issued in two years, Low said. Pending completion of clinical trials, commercialization of OTL38 for ovarian cancer patients is scheduled for early 2019 and for lung cancer patients in 2021.

While we are working to protect our IP, the real goal here is to save lives, Kularatne said. Cancer may start the fight. We want to finish it.

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Cellect Biotechnology (APOP) Stock: Gaining Big On Positive Clinical Data – CNA Finance (press release)

Posted: February 21, 2017 at 11:42 pm

Cellect Biotechnology Ltd. (NASDAQ: APOP)

Cellect Biotechnology is having an incredibly strong day in the market today. As soon as the session opened, the stock was already trading on overwhelmingly impressive gains. From there, we've seen a continuation of strong movement. Below, we'll talk about what we're seeing from the stock, why, and what we'll be watching for with regard to APOP ahead.

As mentioned above, Cellect Biotechnology is having an incredibly strong day in the market today. At the opening bell, the stock was already trading well into the green. Throughout the morning, we've seen a continuation of gains. At the moment (10:52), APOP is trading at $6.91 per share after a gain of $1.08 per share (18.52%) thus far today.

As is almost always the case, our partners at Trade Ideas were the first to send the alert that APOP was making a run for the top. As soon as we received the alert, the CNA Finance team started digging to see exactly what was causing the movement. It didn't take long to uncover the story. The gains are ultimately the result of a positive data release.

Early this morning, Cellect Biotechnology released positive results from its clinical trial of ApoGraft(TM). The point of the study was to validate the company's proprietary method for stem cell selection. To do so, the company went through the process of production and characterization through ApoGraft. In the announcement, investors learned that the company met its primary endpoint in this study.

Moving forward, the CNA Finance team will continue to keep a close eye on APOP. In particular, we're following ongoing work with regard to ApoGraft as well as the rest of the company's pipeline. We'll keep a close eye on the news and continue to bring it to you as it breaks!

Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!

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Puma Biotechnology Inc (PBYI) Moves Lower on Volume Spike for February 21 – Equities.com

Posted: February 21, 2017 at 11:42 pm

Market Summary Follow

Puma Biotechnology Inc is a A biopharmaceutical company

PBYI - Market Data & News

PBYI - Stock Valuation Report

Puma Biotechnology Inc (PBYI) traded on unusually high volume on Feb. 21, as the stock lost 4.72% to close at $38.35. On the day, Puma Biotechnology Inc saw 1.1 million shares trade hands on 8,009 trades. Considering that the stock averages only a daily volume of 715,433 shares a day over the last month, this represents a pretty significant bump in volume over the norm.

Generally speaking, when a stock experiences a sudden spike in trading volume, it may be seen as a bullish signal for investors. An increase in volume means more market awareness for the company, potentially setting up a more meaningful move in stock price. The added volume also provides a level of support and stability for price advances.

The stock has traded between $73.27 and $19.74 over the last 52-weeks, its 50-day SMA is now $34.44, and its 200-day SMA $41.65. Puma Biotechnology Inc has a P/B ratio of 15.46.

Puma Biotechnology Inc is a biopharmaceutical company. It is engaged in the acquisition, development and commercialization of products to enhance cancer care.

Headquartered in Los Angeles, CA, Puma Biotechnology Inc has 156 employees and is currently under the leadership of CEO Alan H. Auerbach.

For a complete fundamental analysis analysis of Puma Biotechnology Inc, check out Equities.coms Stock Valuation Analysis report for PBYI.

Want to invest with the experts? Subscribe to Equities Premium newsletters today! Visit http://www.equitiespremium.com/ to learn more about Guild Investments Market Commentary and Adam Sarhans Find Leading Stocks today.

To get more information on Puma Biotechnology Inc and to follow the companys latest updates, you can visit the companys profile page here: PBYIs Profile. For more news on the financial markets and emerging growth companies, be sure to visit Equities.coms Newsdesk. Also, dont forget to sign-up for our daily email newsletter to ensure you dont miss out on any of our best stories.

All data provided by QuoteMedia and was accurate as of 4:30PM ET.

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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This Biotech ETF Looks Primed To Rally Again – Seeking Alpha

Posted: February 21, 2017 at 11:42 pm

The biotech sector has gotten a lot of attention lately both in the financial markets and in Washington. The sector, which was one of the worst performing areas of the market in 2016, posting a loss of more than 20%, has started posting gains again, and is looking like the rally may be poised to continue. The biggest play in the sector, the iShares Nasdaq Biotechnology ETF (NASDAQ:IBB), is up more than 10% on the year (its smaller equal weight counterpart, the SPDR S&P Biotech ETF (NYSEARCA:XBI), is up over 17%).

The sector has alternatively gotten good and bad news from the White House. For many months, there has been talk of lowering drug prices through open competition or price caps putting pressure on the big drug manufacturers. On the other hand, President Trump spoke recently of his desire to reform the entire drug approval process in order to "speed the approval of life-saving medications" and "cutting the red tape at the FDA." That notion was welcomed by the equity markets even though it received a tepid response from big pharma companies.

One thing working in favor of biotech right now is M&A and the big prize could be Bristol-Myers Squibb (NYSE:BMY). A StreetInsider article from this week called the company "in play" and listed Roche (OTCQX:RHHBY), Novartis (NYSE:NVS), Gilead (NASDAQ:GILD) and Pfizer (NYSE:PFE) all as potential buyers. Acadia Pharmaceuticals (NASDAQ:ACAD) could also be up for grabs with Biogen (NASDAQ:BIIB) rumored to be a possible bidder. In its quarterly analyst meeting, Amgen's (NASDAQ:AMGN) CEO Bob Bradway discussed how his company was going to be on the lookout for acquisitions, both big and small.

Even Gilead, the big biotech that just caught Wall Street off guard when it significantly lowered 2017 revenue guidance due to weak sales in its hepatitis C drugs, even provided some reason for optimism. The stock dropped roughly 10% on its weak forecast, from a pre-earnings level of around $73, down to a post-announcement low in the $65 area. Since then, however, it has, somewhat surprisingly, begun rallying anew. The stock closed Friday at $70, gaining back nearly of what was lost. Does this signal something of a capitulation point and indicate that buyers are ready to return?

From a technical standpoint, the fund just broke out to the upside from a wedge pattern that has been forming over the past several months.

I wrote earlier this month that I felt the Biotech ETF could close out February above $300 if it could break through the resistance level around $285. It has and now it feels like that $300 level is well within reach.

Despite its rally so far this year, the fund is still about 13% off of its 2016 highs and 26% off of its all-time highs. Valuations in the sector look very reasonable right now as well. Thomson Reuters estimates put the forward P/E of the sector at less than 13, a level it hasn't seen in several years.

Gilead's results notwithstanding, the Q4 earnings season has been pretty good for biotech. Big players such as Amgen, Celgene (NASDAQ:CELG), Illumina (NASDAQ:ILMN) and Vertex Pharmaceuticals (NASDAQ:VRTX) - all top 10 holdings in the fund - popped strongly after announcing earnings. If the sector can continue posting generally good revenue and earnings results and get a little help from the White House along the way, this could be a nice spot to add a few shares.

Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.

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