Biotech Stocks
On the Watch: Eiger BioPharmaceuticals Inc. (EIGR)
The set-up: Palo Alto-based Eiger BioPharmaceuticals Inc. (EIGR) develops targeted therapies for rare diseases. The company has two catalysts coming up. Interim data on a Phase 2 study for Pegylated Interferon Lambda – used in the treatment of hepatitis delta virus...
Why shorting biotechs can be risky
Biotech stocks tend to be very volatile, and that has some traders thinking that they will revert to the mean after any nice run. But with the potential for positive catalysts — like successful clinical trial data — the danger of shorting a biotech hoping...
On the Watch: Nektar Therapeutics (NKTR)
The backdrop: Nektar Therapeutics (NKTR) was trading above $23 as recently as July 25, when it announced a $150 million partnership with Eli Lilly (LLY) to co-develop an autoimmune therapy. After its second-quarter earnings report Aug. 8, Nektar pulled back about $6...
Using bullish flag patterns for biotech trading
In baseball, a pennant is a flag that typically is considered the emblem of victory or championships. In investing, a bullish flag or bearish pennant are patterns that indicate how a stock might move next. The bullish flag resembles a pole with a flag, as we’ll see in...
Why not: Zynerba Pharmaceuticals Inc. (ZYNE)
The back story: On Monday, Zynerba Pharmaceuticals (ZYNE) released disappointing results for ZYN002, a cannabidiol-based gel in mid-stage trials for seizures in adults, and the stock went down 60 percent from $15.06 to $6.67. On Wednesday it bounced back up over $8, a...
Why the catalyst matters with biotech stocks
Biotech investors get used to seeing charts on stocks that have jumped or fallen significantly at some point. Inevitably, those pops and free-falls are caused by a catalyst, whether it’s data from clinical trials or U.S. Food and Drug Administration (FDA) approval....
Why and why not: Pharmaceutical Industries Ltd. (TEVA)
The backdrop: Generic drug manufacturer Teva is down more than 40 percent in the last three trading days, from $31.25 at Thursday’s open to $18.59 at Monday’s close. The company reported half a dozen negative catalysts in its Thursday earnings report: badly missed...
Trader toolkit: Trading the gap in healthcare stocks
Ever look at a stock chart and see missing candle bars between days, or even intraday? Those are gaps. Gaps are due to a catalyst or news event, and halts trading while it is happening. It typically occurs premarket or during the after hours, but intraday gaps happen...
A guide to analyzing biotech and pharmaceuticals stocks
Analyzing companies can be a daunting task, and if they’re in the biotechnology or pharmaceuticals space, it can be even more intimidating. There are some quick ways to analyze a company before you consider getting into the stock. Most of this information is free and,...
On the watch: Long-term plays and day-trades in OPKO Health Inc.
The set-up: OPKO Health (OPK) is a stock with a fundamental case for a long-term trade, but the underlying chart for a good day trade. The big picture is bringing investors to the stock, which helps the day-traders get the volume and action that they need. The back...
Today’s trade: Is TEAR ready to go on a tear?
The set-up: TearLab Corp. (TEAR) has recently come off a 114 percent move; if you’re like me and use Fibonacci retracement tools, you can clearly see the set up for a 50 percent retracement bounce around $2.75. The get-up-and-go: Now that TEAR has held over the...
Follow-through: Portola Pharmaceuticals (PTLA)
The back story: A month ago, Portola Pharmaceuticals (PTLA) received FDA approval for BevyxXa, an oral treatment for deep-vein thrombosis and pulmonary embolisms that is the company’s primary pipeline drug. Shares went up 50 percent, management said it expected a...
Why not: Axovant Sciences Ltd. (AXON)
The set-up: Axovant Sciences Ltd. is a clinical-stage biopharma company with a Phase III trial coming out in September for treatment for Alzheimer’s Disease. Why others are buying it: The stock is up more than 80 percent this year, and it is nearing its all-time peak...
