Bicycle Therapeutics: Trying To Catch This Falling Knife

Summary

  • Bicycle reported updated interim data from their lead cancer program, BT8009. Preliminary data suggestive of it being effective against solid tumors.
  • Patients in the 5.0mg/m2 weekly BT8009 cohort showed a 50% overall response rate with favorable tolerability.
  • The market’s initial reaction to the data was positive, however, the stock sold off in the subsequent trading days. I believe the market recognized the data from the other cohorts.
  • The stock has dropped around 50% over the past week and has turned into a “Falling Knife”. I am contemplating trying to “catch the falling knife”. I discuss my strategy.
  • BCYC is speculative, therefore, the ticker would be put into Compounding Healthcare's "Bio Boom" portfolio.
  • This idea was discussed in more depth with members of my private investing community, Compounding Healthcare. Learn More »

Red disassembled mountain bike hovering in the air

sankai/E+ via Getty Images

Bicycle Therapeutics (NASDAQ:BCYC) has been on my radar since it was IPO’d back in 2019, but I always found a way to not pay it much attention... until recently. The company reported interim data from their lead

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This article was written by

9.5K Followers

Biologics is a full-time healthcare investor who developed a passion for biotech and life saving therapies after working in the medical field for years. His trade focus is around innovative companies developing breakthrough therapies and/or pharmaceuticals with catalysts for potential acquisitions.

He is the leader of the investing group Compounding Healthcare. Features of the group include: Several model healthcare portfolios, a weekly newsletter, a daily watchlist, and chat for dialogue and questions. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of BMY, RHHBY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I may initiate a long position in BYCY over the next 72 hours.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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