BST Position Update: October 23, 2014

| October 23, 2014

October 23, 2014

Position Update

. . . . Merrimack Pharmaceuticals (NASDAQ: MACK) – Hold

MACK has bucked the trend of most biotech stocks this year.  It has been in a strong uptrend despite the overall weakness in small-cap biotech stocks.

The stock is now at a 52-week high of $9.17.  That represents a jaw dropping 347% increase from the 52-week low of $2.05.

We remained bullish on MACK following a round of fund raising and some negative trials back in 2013.  We recommended accumulating shares of the stock many times when it was below $4.00 per share.

Anyone who followed our advice to continue buying these shares up to $4.00 is now up at least 129% on this trade!

And thanks to positive phase 2 data regarding MM-121, it should have no problem adding to its already impressive gains.  Continue holding for bigger gains ahead…

. . . . Rockwell Medical (NASDAQ: RMTI) – Sell Half

Rockwell’s NDA for Triferic is scheduled to be reviewed by the FDA on November 6th. Needless to say, this is an important milestone.

RMTI has continued to trend higher as we expected.  The stock is now up 154% from where we recommended buying it! 

Obviously, we expect a positive outcome from the FDA.  But it’s time to protect our profits.  Sell half of your position now.  This will ensure you make a profit on this trade even if RMTI goes to $0.

We’ll continue holding the rest of the position pending the outcome of the FDA advisory committee review.

. . . . Exelixis (NASDAQ: EXEL) – Sell

Exelixis took a major hit when they announced the phase 3 COMET-1 study on cabozantinib failed to meet the primary endpoint.

We had hoped to see EXEL bounce back because they have a number of other drugs in development.  But the bears have been unrelenting.  Any uptick in the stock price has been met with heavy selling.

With the primary catalyst a failure and the high likelihood of more downside, we’re recommending that you should sell EXEL at this time.

. . . . Catalyst Pharmaceutical Partners (NASDAQ: CPRX) – Hold

CPRX has been moving higher in a wide uptrend over the past several months.  The stock is currently up 21% since we recommended buying it in April.

The stock has been on a wild ride over the last few months following the positive results from the phase 3 trial of Firdapse.  It has shown it can be used as a treatment for Lambert-Eaton Myasthenic Syndrome (LEMS).

However, there are concerns about a competing drug from a privately held biotech company.  If they beat CPRX in the race to get the treatment approved by the FDA, then CPRX will be dead in the water.

This risk has kept a lid on the share price of CPRX.  Now we look forward to the NDA filing in early 2015.  Continue holding.

Action To Take

  • Sell Half of Rockwell Medical (NASDAQ: RMTI) for a gain of 154%.
  • Sell Exelixis (NASDAQ: EXEL).


Category: BST Update

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