BST Position Update: October 3, 2014

| October 3, 2014

October 3, 2014

Position Update

. . . . Argos Therapeutics (NASDAQ: ARGS) – Buy

Our most recent trade has started off on a positive note.  ARGS has been trending higher since our recommendation went out.

At a current price of $9.77, it’s currently up 8% and just below our $10.00 buy up to price.

The company recently announced they entered into a $25 million venture loan to continue developing their cancer treatment known as AGS-003.

The additional capital will help ARGS complete the phase 3 testing.  These results are expected in the first half of 2015.

If you haven’t already done so, grab your shares of ARGS up to $10.00.

. . . . Aeterna Zentariss (NASDAQ: AEZS) – Hold

There hasn’t been much in the way of news from AEZS since our recommendation came out a while back.  The initial surge in the weeks following our recommendation pushed the stock up 24% at one point.

The stock has given back some of those gains but we could see AEZS ripping higher again soon…

A new drug application (NDA) to the FDA in AGHD is currently under review with a Prescription Drug Use Fee Act (PDUFA) date of November 5th 2014.

If approved, Macrilen could become the first orally approved product to evaluate AGHD. When approved, it should push AEZS higher.

But the real fireworks won’t happen for a while…

The Company is currently conducting a Phase 3 ZoptEC (Zoptarelin doxorubicin in Endometrial Cancer) trial in women with advanced, recurrent, or metastatic endometrial cancer who have progressed and have received one chemotherapeutic regimen with platinum and taxane (either as adjuvant or first-line treatment).

A successful trial for ZoptEC would be a meaningful catalyst to propel the stock higher. The results are expected in the first half of 2015.

. . . . Rigel Pharmaceuticals (NASDAQ: RIGL) – Sell

RIGL’s phase 2 trial results for R348 for the treatment of dry eye disease failed to meet the primary and secondary endpoints.

Needless to say, the results triggered a quick selloff.  RIGL does have some other stuff in the pipeline.  I hoped to see the stock rebound because of the other promising drugs in their pipeline.

Unfortunately, the selling pressure has never abated. And RIGL is now sitting at a 52-week low of $1.94.

And the phase 3 trial of their drug to treat ITP aren’t due until the end of 2015.  It’s time to cut our losses and move onto better opportunities.

Sell RIGL now to conserve capital.

. . . . Regado Biosciences (NASDAQ: RGDO) – Sell

The bad news for Regado just kept getting worse…

The company halted its phase 3 trial of the Revolixys Kit (REG1) so that the Data Safety Monitoring Board can conduct an unplanned review.  And the company ultimately terminated enrollment in the trial.

The termination of the late-stage trial for their lead drug is devastating for RGDO.  The company has fired 60% of its workforce and it’s now exploring new alternatives.

Without a catalyst for future upside, there’s little to do but sell RGDO and look for better opportunities elsewhere.

. . . . Xencor (NASDAQ: XNCR) – Hold

Xencor has generally held in a trading range between $9.00 and $10.00 per share since we recommended it.

We’re still waiting on the results from the phase 2a trial of XmAb5871 in moderate-to-severe rheumatoid arthritis.  They’re due sometime before the end of the year.

We are definitely excited about XNCR’s upside potential with these catalysts in play.  As such, we recommend you continue holding onto your shares for bigger profits.

Action To Take

  • Sell Rigel Pharmaceuticals (NASDAQ: RIGL)
  • Sell Regado Biosciences (NASDAQ: RGDO)


Category: BST Update

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