BST Trade Alert – November 20, 2015
Recommendation:
Buy CoLucid Pharmaceuticals (NASDAQ: $CLCD) up to $5.00 per share.
About the Company:
CoLucid Pharmaceuticals is a clinical-stage pharmaceutical company. They are developing an innovative and proprietary small molecule for the treatment of migraine headaches.
The company was founded in 2005 and is developing oral lasmiditan for the acute treatment of migraine headaches in adults and intravenous lasmiditan for the acute treatment of unspecified headache pain in adults in emergency room and other urgent care situations.
About the Drug:
CoLucid has two clinical research studies investigating the drug lasmiditan. Both trials are studying the effectiveness on treating headache pain. The Phase 3 clinical trial is testing lasmiditan’s effectiveness on migraine headaches. The company also has a Phase 2b clinical trial on lasmiditan’s effectiveness on headache pain in a hospital setting.
Lasmiditan has been designed to deliver efficacy for the acute treatment of migraine headaches in adults without the vasoconstrictor activity associated with previous generations of migraine medications. It targets a different receptor known as, 5-HT1F, which is what differentiates the drug from current therapies. It works by targeting the central nervous system (CNS) and selectively targets this 5-HT1F receptor.
About the Market for This Drug:
Over 14 million Americans suffer from migraine headaches. They are a chronic condition and are often only treatable with prescription medications.
Migraines are three times more common for women than in men.
A migraine headache is not just a headache. It is often accompanied with nausea, vision loss, numbness, vomiting, and extreme sensitivity to light and sound. A migraine attack can last anywhere from hours to days, and often the pain is so severe you must lay down until the pain has subsided. According to the Migraine Research Foundation, more than 90% of sufferers are unable to work or function normally during their attack.
Doctors used to believe migraines were linked to the opening and narrowing of blood vessels in the head. Now they believe the cause is related to genes that control the activity of some brain cells. Medications like lasmiditan target these cells.
The goal of lasmiditan is to help relieve the debilitating symptoms associated with migraine headaches. With 12% of the population experiencing migraine headaches, new medications are in great demand. If lasmiditan proves to be successful in treating migraines, we will only see financial gains from CoLucid.
About the Potential Catalyst:
The Phase 3 long-term study of lasmiditan is known as the company’s GLADIATOR study. The objective of GLADIATOR is to evaluate the safety as well as the effectiveness of lasmiditan. The trial is scheduled to commence in the first half of 2016.
The trial will enroll up to 2,580 subjects, who will either receive 100mg or 200mg of lasmiditan, and be treated for up to eight migraine attacks per month for one year.
The U.S. Food and Drug Administration has set up a special protocol with CoLucid to address major unmet medical needs in patients who are poorly served by currently unavailable therapies. These patients include people with cardiovascular risks or cardiovascular disease who may not be able to take current therapies on the market.
Needless to say, if the drug gets FDA approved, CoLucid will benefit financially.
About the Shares:
CLCD is currently trading for $4.59. The stock reached a high of $9.46 in June. The stock took a hit in September, but after the company announced the FDA had approved the next phase in their clinical trial, the stock price has been increasing.
This looks like a time to buy considering all of the positive developments. And the support level just below the current price. Look to pick up your shares below $5.00.
Key Facts:
Company: CoLucid Pharmaceuticals
Ticker: CLCD
Recent Price: $4.69
Market Cap: $71.07 million
Average Daily Volume: 51.48k
Chart:
Category: BST Trade Alert
