AVEO Pharmaceuticals, Inc. (NASDAQ:AVEO)
AVEO Pharmaceuticals, Inc. (NASDAQ:AVEO) shares look to continue their rise after last Friday’s 71% gain on huge volumes. On Thursday, AVEO shares closed at $0.73 then gapped up on Friday to open at $1.13 before hitting an inter-day high of $1.38 and closing at $1.25. Volumes were over 54 million shares for a stock that typically trades less than one million shares daily. Today, traders are seeing a repeat performance. AVEO shares have gapped up to open at $1.36 and have hit a high of $1.53, where shares are now trading less than an hour into Monday’s session. Volumes once again are massive – over 6.3 million shares have traded hands which indicates a relative volume figure of over 50 times what could be expected based on a 30-day, daily average trading volume.
The catalyst for the price and volume gains is the announcement by AVEO Pharmaceuticals, Inc. (NASDAQ:AVEO) that the Committee for Medicinal Products for Human Use (CHMP), the scientific committee of the European Medicines Agency (EMA), has recommended FOTIVDA™ (tivozanib) for approval as a treatment for patients with advanced renal cell carcinoma (RCC). The European Commission (EC) normally accepts the CHMP’s recommendation although it is not bound to follow suit. The EC’s final decision is expected in less than nine weeks. If approved by the EC, marketing authorization for tivozanib will be for all the countries in the European Union as well as Norway, Iceland and Liechtenstein.
AVEO Share History
In 2011, AVEO Pharmaceuticals, Inc. (NASDAQ:AVEO) shares hit their all-time high at around $21 per share. A slide in share price then followed and by 2013 AVEO shares could be obtained for less than $2 per share. Prior to Friday’s breakout, AVEO shares hit a lot of resistance around $1.20 and that resistance lowered to $1 in October of 2016.
AVEO Pharmaceuticals, Inc. (NASDAQ:AVEO) sales have been inconsistent. In 2012 the biotech firm reported sales of $19.3 million followed by annual figures of $1.3 million, $18.1 million, $19 million, and in 2016 a figure of $2.5 million was reported. Those sales have not correlated to earnings though. In 2012, the company reported an loss of (-$2.64) per share. That EPS loss continued, but narrowed, through 2016 when the company posted a loss of (-$0.39). Share dilution has been a constant. In 2012 there were 43.37 million shares outstanding and that number grew steadily until, in 2016, AVEO Pharmaceuticals, Inc. (NASDAQ:AVEO) reported 69.27 million shares outstanding.
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: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.