Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.
Omeros Corporation (NASDAQ: OMER) shares were trading higher by $8.88 (63 percent) at $23.43 in Tuesday's session. It is just one of many biotechnology stocks that have gone into orbit following positive data of clinical trials.
Last week, Aquinox Pharmaceuticals (NASDAQ: AQXP) soared from its August 6 close ($1.79) to $55.75 two sessions later when the company announced promising secondary endpoint results for the Phase 2 trial for a new drug targeting interstitial cystitis, a painful bladder condition. In today's session, the issue is back under $20 at $18.94
Before the open, Omeros announced additional positive data in OMS721 Phase 2 clinical trial for Soliris, used for the treatment of aHUS (a disease affecting kidney function).
The furious rally in pre-market trading had the issue trading at $24 just before the open, up from Monday's close of $14.55. There was significant follow through off the open as the issue did not peak until it reached $30.23 around 11:30 a.m. ET. That exceeded its former all-time high from January at $25.84.
From that elevated level, profits takers have come into the marketplace to lock-in gains. After all, the issue is only two days removed from its 10-month low that was reached on Friday at $11.93; Again, similar to Aquinox that was trading at all-time lows two days before its positive announcement.
Today's rally is taking place on much heavier than average volume. So far, 24.8 million shares have changed hands compared to its 20-day average of 1.47 million.
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