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OSI Pharma - OSIP - close: 45.15 chg: +0.95 stop: 42.49

Company Description:
OSI Pharmaceuticals is a leading biotechnology company primarily focused on the discovery, development and commercialization of high-quality pharmaceutical products that extend life or improve the quality of life for cancer and diabetes patients worldwide. OSI's primary business remains oncology, but the Company has a second business interest in the area of diabetes through its Prosidion subsidiary based in the United Kingdom. Tarceva(TM), OSI's flagship product, is the first OSI drug discovered and developed by OSI to obtain FDA approval and the only EGFR inhibitor to have demonstrated the ability to improve survival in non-small cell lung cancer and pancreatic cancer. OSI exclusively markets Novantrone (mitoxantrone concentrate for injection) for the approved oncology indications and markets Gelclair for the relief of pain associated with oral mucositis. (source: company press release)

Why We Like It:
OSIP is on the verge of a trend change. The stock has been stuck in a narrow, descending channel since the reversal back on January 3rd, 2005. After three months of declines the stock is very oversold and way overdue for a bounce. Now that the BTK biotech index has broken through its 200-dma and its short-term trendline of resistance we believe OSIP has a chance to really move higher. Currently, it looks like OSIP has already broken through the top of its descending channel. However, we want to see some confirmation. That's why we are suggesting a TRIGGER at $45.51 to open the play. If OSIP trades at or above our entry price of $45.51 we'll target a move to round-number, psychological resistance at the $50.00 level.

Picked on April xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 05/10/05 (unconfirmed)
Average Daily Volume: 1.5 million
 

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