The Difference Between Spectacular News and No News
NEW YORK, NY / ACCESSWIRE / March 21, 2017 / Biotech firms are speculative in many ways, especially when investing in lower priced stocks. FDA trials can take a nose dive, resulting in the stock price following in its wake. Some biotech stocks fail spectacularly, while when a company gets final approval from the FDA of a drug or technology, the rise in price can be equally spectacular for investors. Below are two stocks that are clearly on the mind of their investors today.
RDI Initiates Coverage:
Esperion Therapeutics Inc. https://ub.rdinvesting.com/news/?ticker=ESPR
Bellerophon Therapeutics Inc. https://ub.rdinvesting.com/news/?ticker=BLPH
When do you know when you have bought exactly the right stock at the right time? When you were an investor in Esperion Therapeutics between March 17th and March 20th of this year. The stock's opening price on Friday was $21.29. Its close on Monday was $41.22 a share. That tallies close to a 100 percent increase in the stock price in just two trading session. The stock shoot up 74 percent on company's Monday press release of FDA confirmation of regulatory pathway to approval for its drug for LDl-C. In short, the company passed the Phase 3 FDA trial and can now globally begin to market and sell its cholesterol lowering drug. Earlier in the last week, Esperion was sliding down, possibly because of market concerns about pricing power of its upcoming drug to Amgen's next generation drug "Repatha". As the relatively weaker data of success rate and effectiveness of "Repatha" were out on Friday, Esperion started climbing up, and then came Monday's press release: "Global Pivotal Phase 3 Program Design Can Support Approval for an LDL-C Lowering Indication" and then the news of investment rating upgrade from Credit Suisse to "neutral" from "underperform" subsequently on the same day. There is more to the press release, but the real news was that the stock price has doubled, and justified the investment.
Access RDI's Esperion Therapeutics Research Report at: https://ub.rdinvesting.com/news/?ticker=ESPR
Investors in Bellerophon Therapeutics were a bit puzzled by the drop in stock price of the company on Friday, March 17th, as there was no news that warranted such a price drop. Likewise, investors today were talking about what triggered the stock's drop in price by 45 cents a share on Friday afternoon's close, only to find it recovered to end up 36 cents a share at $1.39 by the end of Monday's trading day. Some investors remained puzzled by the price swing given the lack of any meaningful news from the company. Others posited it was an intentional manipulation of the stock price to buy more on Monday morning given the size of the company and by 10 a.m. the stock hit its daily high of $1.57. While the company's INOPulse program for treatment of pulmonary arterial hypertension is going through Phase 3 right now, it has reported a loss of $0.37 a share for fourth quarter of 2016, significantly lower than loss of $0.83 reported in the same quarter prior year but higher than consensus estimate of loss of $0.21.
Access RDI's Bellerophon Therapeutics Research Report at: https://ub.rdinvesting.com/news/?ticker=BLPH
Our Actionable Research on Esperion Therapeutics Inc. (NASDAQ: ESPR) and Bellerophon Therapeutics Inc. (NASDAQ: BLPH) can be downloaded free of charge at Research Driven Investing.
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Disclaimer: This article is written by an independent contributor of RDInvesting.com and reviewed by Hemal K. Gandhi, a CFA® charter holder. RDInvesting.com is neither a registered broker dealer nor a registered investment advisor. For more information, please read our full disclaimer at www.rdinvesting.com/disclaimer.
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SOURCE: RDInvesting.com
