MA Diagnostics Firm Posts State's Largest Stock Gain
Today's Boston Globe profiles Advanced Magnetics Inc. (Cambridge, MA), which, despite not much in the way of revenues, posted the largest stock price gain of any Massachusetts company in 2006. How is that possible for a manufacturer of contrast agents that posted lower sales than it did 20 years ago? Because investors are excited about two products in development: a diagnostic agent to detect cancer in lymph nodes, and an iron replacement therapy.
Reimbursement rates for the latter jumped dramatically in 2000. Those developments enabled the firm to raise $130 million by selling new shares, and in the past year its stock price has jumped 430%. Some companies fade into oblivion when the markets they play inÂ wane. Kudos to Advanced Magnetics for reinventing itself and searching for new markets.