BST Position Update – December 3, 2015

. . . .  CoLucid Pharmaceuticals (NASD: $CLCD) – Hold 

CoLucid Pharmaceuticals is our latest trade.  And it’s good one!

CLCD is up 8% today and 45% since we recommended buying it to $6.81.

Investors are clearly warming up to the idea that they could have a blockbuster drug on their hands if they can effectively treat migraine headaches in a more effective manner than current treatments.

What’s more, the company has enough cash to fund operations and the trials of these drugs through 2017.

CLCD is now above our buy price so we’re moving it to a Hold.  

. . . .   Conatus Pharmaceuticals (NASD: $CNAT) – Sell 

The phase 2 trial for CNAT’s leading drug candidate, emricasan, for the treatment of liver cirrhosis didn’t prevent people that were near death from liver failure from dying.

We’ve known this for some time now.  But the company initially said they would continue to study and that there was still promise for this drug.

Well, we’re not seeing the progress I hoped we would.  And the stock has continued to move lower as investors get frustrated with the company and thrown in the towel.

We’re moving on from CNAT.  Sell CNAT to close this trade.

. . . .  Xencor (NASD: $XNCR) – Sell

XNCR has been a long time holding for us.  We sold half of the position back in December of 2014 for $17.64 when the stock doubled from our buy price.

Since then, XNCR has been up and down on a wild ride between $24.82 and $10.27.  Right now, XNCR is trading for $15.09.  That’s up 76% from our original buy price.

As I pointed out in a recent update, XNCR inked a deal with Amgen to develop and commercialize their cancer treatments.  The news sparked a nice rally in the stock.  Now it’s time to take our profits and sell the rest of the position.

Action To Take

• Hold CLCD
• Sell CNAT
• Sell XNCR

Category: BST Update