Kyle Dennis of BiotechBreakouts.com says that Summit Therapeutics (SMMT) is worth looking at now ahead of a Phase 2 data release scheduled for the first quarter of 2018 on a drug treatment for Duchenne muscular dystrophy. Dennis noted that while the condition is rare, a successful trial for another Duchenne drug helped to move Sarepta Therapeutics recently. Dennis is expecting Summit — which he says is a buy now priced between $10 and $10.50 per share — to reach $13 to $14 by year’s end.
Dennis has not purchased the stock yet, hoping for a small pullback and then a green candle to give him a good technical entry point. The uncertain nature of the data release — where the company has only announced that it will be in the third quarter — has Dennis cautious about holding Summit much into 2018. He said he would set his stop-loss on the stock at $9.50, noting that any break down through $10 could be a sign that the market expects a poor outcome on the upcoming catalyst data.
Kyle Dennis is a catalyst – and events-based trader who runs BiotechBreakouts.com. He had no shares, options or open orders in SMMT when this interview was recorded on Dec. 13, but had the stock on his watch list and anticipated buying it under $10.50 per share and then trading it as described in this conversation. The Raging Bull podcast features experts from the site talking with veteran financial journalist Chuck Jaffe on his show, “Money Life with Chuck Jaffe.” You can learn more about Chuck’s daily hour of market and personal-finance chat at MoneyLifeShow.com; you can subscribe to the Raging Bull podcast via iTunes and other podcast providers.