Small Cap Biotech News: Cooling But Still Producing Lotto Tickets (XNCR, RNA, PBYI, GERN & TNIB)

Recent news surrounding small cap biotech stocks like Xencor Inc (NASDAQ: XNCR), Prosensa Holding NV (NASDAQ: RNA), Puma Biotechnology Inc (NYSE: PBYI), Geron Corporation (NASDAQ: GERN)
and TNI BioTech Inc (OTCQB: TNIB) show that while the sector and appetite for biotech IPOs may have cooled, lottery tickets can still be found or occur in the sector. Just consider the following recent news or trends:

Biotech IPOs Cool. All five biotech offerings planned for the week of November 18 were postponed while a biotech IPO for Tuesday priced at the low end of expectations. However, trouble for biotech IPOs actually began in September when a potential treatment for Duchenne muscular dystrophy from small cap Prosensa Holding NV failed in a late-stage study. Prosensa Holding NV had only gone public in June and is now down some 76%:

A recent AP article quoted Francis Gaskins, who runs IPOdesktop, as saying that Prosensa Holding NV's woes reminded biotech investors that disaster can strike at any time. He further noted that biotech IPOs are "going to be in the doghouse a while longer" and "the window of excitement for that sector is closed."

Xencor Inc Debuts in a Cool Reception. On Tuesday, small cap Xencor Inc, which is is developing treatments for severe autoimmune and allergic diseases and cancer, sold 12.7 million shares for $5.50 per share to raise $70 million, at the low end of its expectations. However and back in November, Xencor Inc had said it planned to sell 5 million shares for $14 to $16 each. Nevertheless and on Thursday, shares closed at $7.30 and the stock had a market cap of $222.14 million. Puma Biotechnology Soars But Geron Corporation Takes Investors for a Ride. On Thursday, Puma Biotechnology surged 68.15% after reporting reported surprisingly strong data from a phase-two trial of its breast cancer drug – demonstrating that small cap biotech stocks can still be lottery tickets for investors. Moreover and since going public back in June 2012, Puma Biotechnology is up 521.6% for retail investors.

And just this morning, Geron Corporation surged from the $5.90 level to the $6.75 level only to fall back down to below the $5.80 level and then bounce higher just before noon after the Mayo Clinic study found the biotechnology company's experimental drug imetelstat had helped patients with a bone marrow cancer – according to Bloomberg. Apparently, data was released ahead of the American Society of Hematology meeting that starts tomorrow in New Orleans. Geron Corporation shares are also up some 325% since the start of the year.

TNI BioTech Announces a Deal in Nicaragua. Last Tuesday, small cap TNI BioTech International, which acquires patents, develops treatments, markets and licenses immunotherapies for the treatment of cancer, HIV/AIDS and autoimmune diseases, announced that the Nicaraguan Ministry of Health had granted a certificate of free sale to the company's wholly-owned subsidiary, TNI BioTech International Ltd., for Lodonal, the company's Low Dose Naltrexone product (LDN) for the treatment of patients with autoimmune diseases HIV/AIDS, Crohn's Disease, Multiple Sclerosis and certain cancers. Back in October, TNI BioTech had announced that TNI BioTech International, Ltd. had a distribution agreement with a Nigerian company called AHAR Pharma to market Lodonal in Nigeria for the treatment of autoimmune diseases and cancer. TNI BioTech says this deal will generate just over $53,000,000 in gross revenue for the company in 2014 with approximate $21,000,000 in available cash flow to meet TNIB's financial clinical trial commitments plus AHAR Pharma had also pre-paid for the API necessary for the soft launch and has committed to purchase a minimum of $1,000,000 worth of capsules between now and January 2014. Since then, TNI BioTech has also received a Certificate of Free Sale and export licenses for the Republic of Nigeria, Republic of Equatorial Guinea, Republic of Malawi and the Republic of Gabon. In addition, TNI BioTech has been in discussion with a number of other emerging countries concerning the approval of Lodonal and hopes to receive approvals in these countries over the next year.