The enterprising investors, by definition, will devote a fair amount of his attention and efforts toward obtaining a better than run-of-the-mill investment results. - The Father of Value Investing (Benjamin Graham)
On Jan. 30, 2018, the broader life science market gave up some gains (accumulated in the previous month). Accordingly, the iShares of NASDAQ Biotechnology Index (NASDAQ:IBB) traded down $2.23 (-1.9%) at $116.27. Moreover, the SPDR S&P Biotech (NYSE:XBI) exchanged hands $2.00 (-2.0%) lower at $95.03. It is typical to witness the market to shed some steams (as traders took profits).
In a day when market bears came out of the woodwork, bulls of three notable equities in the Integrated BioSi Investing Long-Term portfolio continued to charge ahead. First, the shares of Madrigal Pharmaceuticals (NaSDAQ:MDGL), a bioscience focusing on the innovation of medicines to serve the nonalcoholic steatohepatitis (“NASH”) and heterozygous familial hypercholesterolemia (“HeFH”) - added $13.61 (+10.7%) to close at $139.85.
Notably, the stock earned over 69% profits since we recommended it back in Dec. 07, 2017 (due to the positive phase 2 data release for MGL- 3196 as a potential treatment for NASH). The catalyst that moved the stock higher today is due to the company’s announcement of the acceptance of MGL-3196 abstract for a main plenary presentation at the International Liver Congress (to be held in Paris, France, from April 11-15). Interestingly, Madrigal will present the stellar week-12 data of the ongoing phase 2 study: one that is investigating MGL-3196 - the first-in-class, oral, once-daily, liver-directed, beta-selective thyroid hormone receptor agonist - versus placebo in NASH patients. We noted in the prior research that there are multiple catalysts powering this stellar grower. And, it highly likely that the share price will continue to head further north.
Secondly, the shares of Atara Biotherapeutics (NASDAQ:ATRA), an immuno-oncology focused company with molecules functioning similarly to CAR-T, increased by $3.00 to end the trading session at $40.25 (for +8.0% profits). The firm gained +187% since we recommended it to our partners. While there is no seeming catalyst for the day, the underlying fundamentals of Atara are robust (due to the substantial unlocked value in lead molecules ATA-129 and ATA-188).
Third up is Ocular Therapeutics (NASDAQ:OCUL), an innovator of hydrogel technology that is biodegradable while allowing for the extended delivery of various ophthalmology drugs. Of note, the stock commenced to trading northbound for the last two sessions. Today, it gained $0.32 (+5.7%) to trade at $5.89. In the prior research, we noted that the firm is a likely acquisition candidate by Regeneron Pharmaceuticals (NASDAQ:RGEN) due to its highly promising platform technology (and an enriched pipeline). While the practice of forecasting mergers and acquisitions (“M&As”) is quite low-yield, Regeneron already built significant stakes in Ocular (which gives at least some credence to our thesis). Ocular is one of the notable issues to make our list of top M&A candidates for 2018.
Figure 1: Notable market movers. (Source: Google Finance).
“Insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise,” said Peter Lynch. Hence, we’ll go over notable insider trades while keeping in mind Lynch’s teaching.
Per figure 2, three interesting transactions featured our research for the day - two of which were made by insiders of Solid Bioscience (NASDAQ:SLDB). In focusing on the development of gene-therapy, disease-modifying molecules, and assisted devices to service the rare genetic condition (Duchenne muscular dystrophy), the company can earn the premium pricing for its drugs (to offset the lengthy and low success of the therapeutic innovation process).
As follows, Director Rajeev Shah bought 1.00M shares for $16M: this increased his ownership by 65% to roughly 2.7M shares. In addition, Perceptive Advisors (the company’s director) also staked 1.02M shares for $16.5M, thus raising the highly successful hedge fund ownership by 35% (to 3.9M shares). In all probability, those insiders must be optimistic re its prospects to acquire such a significant amount. We concur with the insiders (and we’ll discuss this company’s underlying fundamentals in the next IBI research).
Bioscience News And Analysis
In the past year, there have been 11.5M Americans misused prescription opioids and over 40 people are dying daily from such overdoses. Consequently, the FDA announced today that additional strategies are being implemented to curb the aforementioned epidemic.
In all, the FDA Chief is working diligently to push for policies that are fostering therapeutics innovation as well as to minimize the opioid alarming trend. Asides the various approaches that Dr. Gottlieb mentioned, our research revealed that Nektar Therapeutics (NASDAQ:NKTR) - a stellar growth bioscience that is brewing an enriched pipeline for the treatments for cancer, autoimmune diseases, and chronic pain - probably has the silver bullets (NKTR-181) to curb prescription opioids abuse.
Of note, there is an in-depth Integrated BioSci version of this research, published in advance to subscribers of Integrated BioSci Investing (a community of expert physicians, scientists, executives, market leaders, and everyday investors). In the aforesaid research, we explored the aforesaid developments in much greater details (and provided specific guidance on how you can capture the lucrative profits of the bioscience market).
Author’s Notes: We’re honored that you took the time out of your busy day to read our market intelligence. Founded by Dr. Hung Tran, MD, MS, CNPR, (in collaborations with Dr. Tran BioSci analyst, Ngoc Vu, and other PhDs), Integrated BioSci Investing (“IBI”) marketplace research is delivering stellar returns since inceptions. To name a few, Nektar Therapeutics (NASDAQ:NKTR) procured more than 338% profits; Spectrum Pharmaceuticals (NASDAQ:SPPI) delivered over 192% gains; Kite Pharma netted 82%; Atara Biotherapeutics (NASDAQ:ATRA) appreciated +187%. Crispr Therapeutics (NASDAQ:CRSP) garned plus 127%. Exelixis Inc (NASDAQ:EXEL) earned greater than 63% capital appreciation. Our secret sauce is extreme due diligence coupled with expert data analysis. The service features a once-weekly exclusive in-depth Integrated BioSci Alpha-Intelligence article (in the form of research, reports, or interviews), daily individual stocks consulting, and model portfolios.
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Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.