MACK the Company-The clinical data, and prospects for MACK continue to be positive, with strong recent support at the European Society for Medical Oncology. MACK the stock- The near concurrent expiry of the insider lockup,and the attendant sale of shares has more than offset the positive effects of ESMO. Witness the share price run up from the low $ 8's to $ 11 and now back down to the mid $ 7's.Hoping for the stock break the downward trajectory effected by insiders seeking liquidity and asset diversification, after supporting the company for many years, is a noble sentiment but not an investable strategy. MACK needs a tangible catalyst for the negative stock technical's to reverse, resulting in attracting new investors, adding to positions by existing investors, or ideally both. The next earnings report on November 1, and subsequent management is the best venue to announce catalysts.
For purposes of transparency and disclosure I acquired several new positions this week at prices from the very low to mid $8's.
I hear you but would offer the counter view that the opportunity to purchase a pipeline of five therapeutics---two of which are utterly novel and in one of the hottest areas in cancer therapy---for around seven hundred million is reason unto itself. A great deal of doubt around the new target was put to bed after the ESMO meeting for the new therapeutics, and the 'old line' drugs(MM398 and MM302) are all but slam dunks. They are proven drugs in a new delivery vehicle so the chances of their success are very high.
So if value means anything to you this is probably a great opportunity. But yes, I agree, most biotech investors are event driven, and until there is some 'hook' moment where herds of folk are convinced simultaneously the price could lag. It would be refreshing to see smart folks line up now and buy before the crush comes----after a positive Phase II trial, an outlicensing deal, a take over attempt(obviously I'm speculating here) etc---and perhaps some will. We'll see.