Monica Gray

Monica has an undergraduate degree in Accounting and an MBA she earned - with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.
Axovant Sciences Ltd (NASDAQ:AXON)

Axovant Sciences Ltd (NASDAQ:AXON) Alzheimer’s Treatment Flops

Axovant Sciences Ltd (NASDAQ:AXON)

Pharmaceutical firm Axovant Sciences Ltd (NASDAQ:AXON) has disclosed that development for a trial Alzheimer’s drug would be halted after it failed to meet its endpoints. Consequently shares of the company fell by 74.7% to settle at $6.13 on Tuesday – a record low.

According to the New York-based firm, there was no difference between a placebo and the drug (known as intepirdine) in the trial involving 1,150 participants. The trial measured the ability of trial participants to carry out regular daily activities such as bathing and dressing. The drug did not affect brain power significantly.

Axovant Sciences Ltd (NASDAQ:AXON)

5-HT6 antagonists

Intepirdine was meant to be taken daily. It is in the class of treatments known as 5-HT6 antagonists. These drugs work by assisting in the release of acetylcholine by blocking 5-HT6 receptors. Acetylcholine is a neurotransmitter which is required in order to perform normal cognitive activities. The failure has raised doubts over whether the mechanism has potential in the development of Alzheimer’s treatments.

“Following a slew of failures with other 5-HT6 receptor antagonists, Axovant Sciences Ltd (NASDAQ:AXON)’s intepirdine put the nail in the coffin for the mechanism in Alzheimer’s disease,” Brian Skorney an analyst at Baird wrote in a research note.

Alzheimer’s is the most common type of dementia. In the United States it affects approximately 5.5 million people. Earlier in the year Lundbeck, a pharmaceutical firm based in Denmark, revealed that the late-phase trials of a similar drug using the same mechanism had failed to meet the endpoints as well. Other pharmaceutical companies that have failed to develop an Alzheimer’s drug include Merck and Eli Lilly.

Consistent failure

Over the years drug companies have invested billions of dollars trying to find a treatment for Alzheimer’s since the potential global market for a cure is 44 million-strong. So far only four Alzheimer’s drugs have received U.S. Food and Drug Administration (FDA) approval. The last time the FDA greenlit a new Alzheimer’s drug was 14 years ago. According to some analysts and doctors, pharmaceutical firms are conducting trials without having a full understanding of the science behind the disease.

Axovant Sciences Ltd (NASDAQ:AXON) did not develop intepirdine from the ground up and had actually bought the rights from GlaxoSmithKline three years ago at a price of $5 million. The pharmaceutical startup went public a year later in 2015 achieving a valuation of close to $3 billion. At the time questions were raised over the lofty valuation given that it was based on a drug which in the hands of the previous owner, GSK, had flopped consistently in trials.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

CareDx Inc. (NASDAQ:CDNA)

CareDx Inc. (NASDAQ:CDNA) Spikes

CareDx Inc. (NASDAQ:CDNA)

Shares of CareDx Inc. (NASDAQ:CDNA) gained 23.7% after the molecular diagnostics company received a notice indicating that Medicare reimbursement for Allosure will be pegged at $2,840.75. The notice comes days after Medicare confirmed that reimbursement for AlloMap will increase from $2,840 to $3,240 starting in 2018. AlloSure attaining Medicare Coverage is a milestone achievement given that very few diagnostic tests ever achieve the milestone.

Investors Reaction

Buoyed by the newly released Medicare rates, investors pushed CareDX stock above $3.40, which had acted as a key resistance level. The stock has since recorded a new 52-week high of $4.59 a share as it continues to trade around this year’s highs.

CareDx Inc. (NASDAQ:CDNA)

AlloSure Prospects

AlloSure Medicare reimbursement approval follows a rigorous assessment by the Molecular Diagnostics Services (MolDX) Program after clinical trials in 14 leading transplant centers and 400 patients. The new rates should allow CareDx Inc. (NASDAQ:CDNA) to make more money on reimbursements of kidney transplants. Medicare covers about 80% of kidney transplants across the U.S thus presenting a unique opportunity for the company to generate significant value from the noninvasive test. The test has the potential to generate up to $200 million for the molecular diagnostics company.

“We are pleased to see Medicare reimburse AlloSure at the same level as AlloMap, highlighting the value of advanced diagnostic tests to measure organ health for transplant recipients. AlloSure testing provides the precision medicine approach needed for individual transplant recipient clinical management,” said CareDx Inc. (NASDAQ:CDNA) Chief Commercial Officer, Sasha King.

CDNA Stock Rating

Analysts have already taken note of the potential impact of AlloSure on CareDx Inc. (NASDAQ:CDNA) earnings in the wake of the Medicare reimbursement milestone. Piper Jaffray analyst, William Quirk, has raised his share price target on the stock to $7 a share from $3 a share. According to the analyst, the new rates should jump-start the company’s push to profitability.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $CDNA and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

Aradigm Corporation (NASDAQ:ARDM): Linhaliq gets FDA Priority Review

Aradigm Corporation (NASDAQ:ARDM)

Aradigm Corporation (NASDAQ:ARDM) skyrocketed more than 32.8% yesterday following news that the U.S. Food and Drug Administration (FDA) agreed to accelerate the approval review of its lead drug candidate.

The stock rose 32.81% in regular trading hours to $3.36 and jumped an additional 2.38% in trading after-hours to end at $3.44. The day was characterized by modest volume of shares changing hands. The gains left Aradigm up 110% for the year and cut its losses over the last 12 months to 48.3%. In the last 12 months, Aradigm has declined to a low of $0.78 and risen to a high of $7.19.

Aradigm Corporation (NASDAQ:ARDM) is engaged in the development and commercialization of treatment and prevention therapies of severe respiratory diseases.

Linhaliq gets accelerated review

On September 25, Aradigm Corporation (NASDAQ:ARDM) released an announcement stating that the FDA accepted to grant priority review to new drug application (NDA) for Linhaliq. Priority Review status implies a faster a FDA review of a drug application compared to regular review process. As such, Priority Review should shorten the time of bringing a new drug to market if the application is approved.

In light of the Priority Review, Aradigm Corporation (NASDAQ:ARDM) is expecting to hear from the FDA regarding the outcome of Linhaliq review by January 26, 2018.

Aradigm developed Linhaliq as a treatment for NCFBE (non-cystic fibrosis bronchiectasis) in patients with chronic infections with Pseudomonas aeruginosa (P. aeruginosa). The company said it will continue working with the FDA during the review period to support approval of Linhaliq so that the drug can provide much-needed treatment for the targeted patients.

Unmet medical need

NCFBE is a severe, chronic, and rare disease frequently associated with chronic lung infections. More than 150,000 people in the U.S. are victims of NCFBE, while more than 200,000 people in Europe suffer from the disease. NCFBE represents an unmet medical need, and there is currently no drug approved for treatment of NCFBE patients with chronic infections with P. aeruginosa. This category of NCFBE patients has three times higher mortality and a worse quality of life compared to the group of NCFBE patients without P. aeruginosa infections.

Aradigm Corporation (NASDAQ:ARDM)’s Linhaliq has obtained several favorable regulatory labels, implying that it could come to market with a strong profile. For example, the FDA granted Linhaliq Orphan Drug Designation for the management of bronchiectasis. The candidate also carries Fast Track Designation and Qualified Infectious Disease Product (QIDP) Designation for the treatment of NCFBE patients who also have chronic lung infections with P. aeruginosa.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $ARDM and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

Akari Therapeutics PLC (ADR) (NASDAQ:AKTX)

Akari Therapeutics PLC (ADR) (NASDAQ:AKTX): Coversin Trial Overshadows

Akari Therapeutics PLC (ADR) (NASDAQ:AKTX)

Akari Therapeutics PLC (ADR)(NASDAQ:AKTX) fell 6.4% days after announcing it will proceed with Phase 3 trial for Coversin, a novel treatment for Paroxysmal Nocturnal Hemoglobinuria (PNH), following advice from the U.S. Food and Drug Administration (FDA). According to the Chief Executive Officer, David Horn Solomon, the proposed trial is part of an effort that seeks to make good use of a recently issued Fast Track designation status for the treatment.

Akari Therapeutics PLC (ADR)(NASDAQ:AKTX)
One month AKTX stock price chart

Coversin Clinical Trials

A positive FDA recommendation has helped strengthen Akari Therapeutics PLC (ADR) (NASDAQ:AKTX) sentiments among investors at a time when it is facing a string of class action lawsuits. The stock has already closed above the $7 a share mark, a key resistance level, waiting to see if it will continue to edge higher at the back of the recent pullback.

However, the stock is still down for the year after slumping from highs of $22 per share registered in April. Akari Therapeutics PLC (ADR) (NASDAQ:AKTX) faces immediate resistance at $10, above which it could make a push for $14.

Positive trial results for Coversin could help push Akari Therapeutics higher after a poor run in recent months. The FDA has already indicated that safety and efficacy data in PNH patients for more than a year could be reasonable for review purposes.

“Akari continues to build momentum in its complement focused therapy by advancing Coversin towards Phase III in PNH and Phase II in aHUS. With Coversin delivered subcutaneously, patients may have greater independence due to self-administration,” said Mr. Solomon.

In addition to investigating Coversin for the treatment of PNH, Akari Therapeutics PLC (ADR) (NASDAQ:AKTX) is also investigating the candidate drug for the treatment of keratoconjunctivitis a rare eye disorder. The company is also investigating the drug for the treatment of bullous pemphigoid a rare skin disorder.

Misleading Statements?

Separately, Akari Therapeutics PLC (ADR) (NASDAQ:AKTX) continues to face allegations that it provided materially false and misleading statements that led to shareholders incurring some losses. Law Firm Khang & Khang LLP alleges that former CEO Dr. Gur Roshwalb and other executives published false information about Phase 2 PNH trial of Coversin.

In May, the former Chief Executive Officer was placed on administrative leave by the board of directors after publishing the misleading reports that were later withdrawn on April 26, 2017.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $AKTX and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

ITUS Corp (NASDAQ:ITUS) Licenses CAR-T Technology

ITUS Corp (NASDAQ:ITUS)

ITUS Corp (NASDAQ:ITUS) traded higher after providing an update on its new cancer detection system, Cchek, and a new CAR-T initiative for ovarian cancer. The stock was up by 6.21% to cap an impressive week that saw the stock rally by more than 40%.

ITUS Corp (NASDAQ:ITUS)
One month ITUS stock price chart

Investors Reaction

However, ITUS shares are still down by more than 50% for the year after coming under immense selling pressure. It is currently trading in a $1.92- $2.35 trading range awaiting to see if the current bullish momentum will push the stock above the $2.35 mark – the next resistance level.

Renewed investor interest follows the announcement that Cchek can detect up to 15 types of cancers. The U. S Patent and Trademark Office (USPTO) has already granted the company a patent for the technology developed by Anixa Diagnostics Corporation, a wholly-owned subsidiary.

“We continue to make progress in our R&D efforts as we work with our partners, MD Anderson, U. Pennsylvania’s Abramson Cancer Center, Delaware Valley Urology, Virtua Hospitals, and others. Cchek™, which has demonstrated 91% sensitivity and specificity in a preliminary study, continues to perform at that level or better,” said CEO, Amit Kumar.

ITUS Corp (NASDAQ:ITUS) is currently conducting studies with a number of collaborators as it seeks to expand the indications of the cancer detection technology. The ongoing studies seek to determine whether the technology can be used as a monitoring therapy as well as for evaluating patient response to various immuno-oncology drugs.

CAR-T Initiative

In addition to helping in the detection of cancer, ITUS Corp (NASDAQ:ITUS) is expanding its footprint into the business of fighting cancer. The company has signed an exclusive agreement with the Wistar Institute for the licensing of the company’s Chimeric Antigen Receptor T-cell CAR-T.

The CAR-T technology paves way for ITUS Corp (NASDAQ:ITUS) to flex its muscle on the development of treatments for ovarian cancer as well as Prostate, Pancreatic among other cancers.

“In addition to our ongoing discussions with The Wistar Institute, we are concurrently negotiating with one of the country’s top cancer centers to further develop the technology, aiming to complete the studies necessary to submit to the US FDA, enabling human testing on ovarian cancer patients,” stated Dr. Kumar.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $ITUS and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

Akari Therapeutics PLC (ADR) (NASDAQ:AKTX) Explodes On FDA Validation

Akari Therapeutics PLC (ADR) (NASDAQ:AKTX)

Shares of Akari Therapeutics PLC (ADR) (NASDAQ:AKTX) jumped 56.4% after the biopharmaceutical company said it will advance its lead investigational drug Coversin on advice from the U.S. Food and Drug and Administration (FDA). The company plans to commence Phase 3 studies of the novel treatment for Paroxysmal Nocturnal Hemoglobinuria in the first quarter of 2018.

AKTX Stock Performance

Positive feedback from the FDA is one of the reasons the stock spiked higher as it shows the agency remains confident about the drug’s prospects. Thursday’s rally saw the stock close above a key support level, providing support to a bullish momentum that began last month.

Akari Therapeutics PLC (ADR) (NASDAQ:AKTX) has traded in a downtrend since reaching highs of $22 a share in April. However, AKTX shares appear to be picking up after plunging to multi-year lows of $3 a share.

Akari Therapeutics PLC (ADR) (NASDAQ:AKTX)
One month AKTX stock price chart

Coversin Prospects

Coversin has already attained Fast Track status in the U.S. – a designation that allows it to enjoy expedited regulatory review. PNH, for which the candidate drug is indicated, is a rare, life-threatening disease of the blood characterized by the destruction of red blood cells and blood clots. The condition affects 1 to 1.5 persons per million people – mostly young adults.

Phase 3 studies of Coversin will target naïve PNH patients that have not used eculizumab as a standard care. Primary endpoints will be based on hemoglobin and transfusion data

“Akari continues to build momentum in its complement focused therapy by advancing Coversin towards Phase III in PNH and Phase II in has. With Coversin delivered subcutaneously, patients may have greater independence due to self-administration,” said Dr. David Horn Solomon, Chief Executive Officer of Akari Therapeutics PLC (ADR) (NASDAQ:AKTX).

Class Action Lawsuit

Separately, Akari Therapeutics PLC (ADR) (NASDAQ:AKTX) is still the subject a class action lawsuit over claims it provided misleading statements between March 30, 2017 and May 11, 2017. According to law firm Khang & Khang LLP, former Chief Executive Officer, Dr. Gur Roshwalb, and other executives published incorrect information about the Phase 2 trial of Coversin. The law firm alleges that the company’s action resulted in the stock price losing a significant amount of value which harmed investors.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $AKTX and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

PhaseRx Inc. (NASDAQ:PZRX)

PhaseRx Inc. (NASDAQ:PZRX) Spikes 66% On Orphan Drug Designation

PhaseRx Inc. (NASDAQ:PZRX)

PhaseRx Inc. (NASDAQ:PZRX) shares jumped 66.45% after the U.S. Food and Drug Administration (FDA) granted an Orphan Drug Designation for its treatment of argininosuccinate lyase deficiency (ASLD), PRX-ASL. According to Chief Executive Officer, Robert W. Overell, the designation represents an important milestone in the development of the company’s second therapeutic candidate.

Stock Performance

The Orphan Drug Designation helped reverse a strong downtrend that had plagued the stock since May. The stock has since risen above the $1.20 mark, a key resistance level. It awaits to be seen if the close above the $1.20 mark will help fuel a run to $1.90, which acts as another resistance level.

One month PZRX stock price chart

PhaseRx Inc. (NASDAQ:PZRX) Surges 66.45% is a biopharmaceutical company specializing in the development of mRNA products targeting life-threatening inherited liver disease in children. PRX-ASL is the company’s candidate drug for ASLD, a rare liver disorder caused by a single-gene deficiency that most of the time results in elevated ammonia in the blood.

PhaseRx’s PRX-ASL is a replacement therapy designed to replace missing or defective enzyme in patients with ASLD. Clinical trials have shown that the candidate drug can reduce compounds that form the hallmark of ASLD including Plasma and blood ammonia.

“PRX-ASL is our second drug to show preclinical proof of concept using our Hybrid mRNA Technology. Like our lead candidate PRX-OTC, we believe PRX-ASL also has the potential to correct the disease in children, a population that could particularly benefit from treatment for this rare disease,” said Mr. Overell.

Orphan Drug Designation Synergies

The Orphan Drug Designation is an important milestone because PhaseRx Inc. (NASDAQ:PZRX) will now be able to get assistance in clinical studies as well as design and drug development from the FDA. The company could also receive tax credits for clinical trial costs as well as exemptions from certain FDA applications.

Seven years of market exclusivity upon regulatory approval is another benefit that the company stands to enjoy. The European Medicine Agency has also granted Orphan Drug Designation for the novel treatment.

Separately, PhaseRx Inc. (NASDAQ:PZRX) posted a net loss of (-$3.5) million for Q2 2017 – less than half the net loss of (-$11.1) million the company reported a year ago. Operating expenses in the quarter totaled $3.3 million, down from $9.8 million reported in Q2 2016. The biopharmaceutical company exited the quarter with cash and cash equivalent of $8.4 million.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $PZRX and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

HTG Molecular Diagnostics Inc. (NASDAQ:HTGM)

HTG Molecular Diagnostics Inc. (NASDAQ:HTGM) Jumps 5% On Patents

HTG Molecular Diagnostics Inc. (NASDAQ:HTGM)

HTG Molecular Diagnostics Inc. (NASDAQ:HTGM) shares jumped 5.98% after the United States Patent Office (USPTO) granted it two new patents.

HTG Molecular Diagnostics Inc. (NASDAQ:HTGM) shares jumped 5.98% after the United States Patent Office (USPTO) granted it two new patents.
One month HTGM stock price chart

HTG’s Two Patents

The first patent, Molecular Malignancy in Melanocytic Lesions, details a new method for treating indeterminate or typical nevi by measuring nucleic acid expression of biomarkers.

The second patent dubbed Nuclease Protection Methods for Detection of Nucleotide Variants details a Nuclease protection based method for targeted detection of single nucleotide variants.

“The newly issued patents substantiate the proprietary nature of our business and represent an important step in protecting our technology and its applications. As we grow, we will continue to pursue additional protection around our instrument portfolio and our testing methods,” said CEO TJ Johnson.

News of the new patent did little to reverse a strong downtrend that has engulfed the stock since early April. The stock is already down by more 60% from its April highs as it continues to trade at levels last seen at the beginning of the year. The stock faces immediate resistance at the $2 a share level above which it could make a push for the $4 a share mark, which acts as another resistance level.

A net loss of (-$5.5) million for the second quarter fueled a selling wave on the stock. The molecular diagnostics company reported revenues of $1.8 million. Customer revenue accounted for $1.4 million of the total revenue as consumable revenue came in at $4 million. HTG Molecular Diagnostics Inc. (NASDAQ:HTGM) expects its full-year revenue to range between $9 million and $12 million.

According to the Chief Executive Officer, the second quarter performance underscored the expansion of the company’s diagnostic pipeline. HTG Molecular Diagnostics Inc. (NASDAQ:HTGM) has three clinical development programs including two with Qiagen.

HTG EdgeSeq AKKPlus ASSAy

Separately HTG Molecular diagnostics is in the process of filing the fourth and final module related to the premarket approval application for HTG EdgeSeq AKKPlus ASSAy. The in vitro diagnostic is designed it measure and analyze mRNA gene rearrangements.

The U.S. Food and Drug Administration (FDA) has already completed a review of two of the three submitted modules. HTG Molecular Diagnostics Inc. (NASDAQ:HTGM) plans to carry out a method comparison study whose data is to be used to support the fourth and final module.

“Importantly, we believe our commercialization efforts with the HTG EdgeSeq ALKPlus Assay EU, our CE/IVD marked product in Europe, are going well, and we intend to launch the HTG EdgeSeq ALKPlus Assay in the U.S. once we receive PMA approval,” said Mr. Johnson.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $HTGM and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

Neos Therapeutics Inc. (NASDAQ:NEOS) Trades Lower after FDA Approval

Neos Therapeutics Inc. (NASDAQ:NEOS)

Neos Therapeutics Inc. (NASDAQ:NEOS) shares fell 3.45% a day after the U.S. Food and Drug Administration (FDA) approved its treatment for Attention Deficit Hyperactivity Disorder, Adzenys. The approval brings the number of the company’s ADHD products approved in the past three years to three.

NEOS Stock Performance

Tuesday’s sell-off threatened to bring to an end a bullish that began last month. The stock has struggled to close above the $9 a share mark on two attempts. However, it is still up by more than 20% for the year, compared to the industry average of 2.9%.

Neos Therapeutics Inc. (NASDAQ:NEOS)
One month NEOS stock price chart

It awaits to be seen if investors will continue to push the stock higher in the wake of the FDA milestone. The FDA approval unlocks yet another treatment option for people struggling with Attention Deficit Disorder in addition to strengthening the company’s ADHD portfolio.

“Neos Therapeutics Inc. (NASDAQ:NEOS) has now successfully gained FDA approval of three ADHD products in just two years. We are very proud of this accomplishment and believe it speaks to the strength of our technology platform. Our commitment to ADHD and addressing the individual needs of patients is clear, and we look forward to the commercial launch of this product in early 2018,” said Vipin K. Garg, Ph.D.

ADHD Treatment Push

Adzenys is a once-daily extended release liquid medication that does not require refrigeration to reconstitute at the pharmacy level. It utilizes the same principle as Adzenys XR-ODT that allows healthcare providers to transition patients from liquid to ODT formulations.

Just like Adzenys XR-ODT, the newly approved drug is designed to stimulate the central nervous system of patients six years and older. Neos Therapeutics Inc. (NASDAQ:NEOS) plans to launch the drug in the first half of the year. Adzenys XR-ODT generated sales of $7.3 million in the first half of the year representing a 35.5% year-over-year growth.

While ADHD is one of the largest and fastest growing business segments, it continues to attract a number of companies, gunning for market share with novel treatments. Johnson & Johnson (NYSE:JNJ) is pushing for market share with its Concerti treatments and so is Pfizer Inc. (NYSE:PFE) with PFE Quilivant.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

Dimension Therapeutics Inc. (NASDAQ:DMTX) Up 40% on $138 Mln Acquisition

Dimension Therapeutics Inc. (NASDAQ:DMTX)

Shares of Dimension Therapeutics Inc. (NASDAQ:DMTX) rallied 40.48% after Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE) proposed to buy all its outstanding shares for $5.50 a share. The acquisition bid values the company at $138 million, representing a 358% premium to the stock’s share price as of August 24, 2017.

Dimension Therapeutics Inc. (NASDAQ:DMTX)
One month DMTX stock price chart

Bidding war

The bid comes just days after Dimension Therapeutics announced it had received an acquisition bid from Regenxbio Inc. (NASDAQ:RGNX) of about $3.41 a share. Ultragenyx is hoping that its improved offer, which guarantees more shareholder value, will sway Dimension Therapeutics Inc. (NASDAQ:DMTX) management and shareholders to agree to a merger.

Dimension Therapeutics has been trading in an uptrend ever since it emerged it was an acquisition target. Regenxbio bid helped push the stock from lows of $1.50 a share to highs of $4 a share. The stock has since risen above the $4.50 a share mark which had acted as a key resistance level. The stock is currently trading in a $5.35 – $5.90 trading range as it closes in on its 52-week high of $9.98 a share.

Ultragenyx Takeover Plan

Ultargenyx’s Board of Directors has already approved the proposed $138 million takeover as it awaits a response from Dimension Therapeutics Inc. (NASDAQ:DMTX). The Company plans to finance the transaction with cash resources from its balance sheet and expects the transaction to close over the next 25 business days.

According to Ultargenyx CEO, Emil Kakkis the merger would not face any regulatory scrutiny given that the two companies products are highly complementary and don’t overlap.

“This transaction provides a compelling opportunity to create value by leveraging Ultragenyx’s advanced clinical and regulatory expertise, as well as its rare metabolic disease commercial infrastructure to advance Dimension’s rare disease-focused gene therapies and bring much-needed new treatments to market,” said Mr. Kakkis.

Ultargenyx’s CEO says they are pushing for a merger because the two companies share a vision of coming up with therapies for unmet medical conditions. The two companies also boast of a strong track record of advancing rare disease candidate drugs through clinical and regulatory processes.

Ultargenyx vision with the acquisition bid is to help accelerate the development of Dimension Therapeutics Inc. (NASDAQ:DMTX) gene therapies by leveraging its clinical and regulatory experience. The company also intends to form a gene therapy development and manufacturing unit.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $DMTX and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.