U.S. Markets open in 2 hrs 15 mins

Tuesday’s Biggest Biotech and Pharma Moves

Chris Lange

To kick off the New Year, a few biotech companies made massive runs on this first day of trading in 2017. The health care sector was in trouble over the past year, under fire from congressional hearings and politicians on the campaign trail. But 2017 could be different for this sector, with a new administration and new perspective that could lead to more positive trials, U.S. Food and Drug Administration (FDA) approvals and mergers and acquisitions.

These companies 24/7 Wall St. has picked stood out from the rest on Tuesday morning. We have included information about each company, as well as recent trading activity and the consensus price target.

ALSO READ: Cities Where You Don't Want to Get Sick

As we have said before, the results of clinical trials as well as FDA decisions have the potential to make or break companies in the biotech and pharmaceutical industries. 24/7 Wall St. also has put together an  for some key decisions and catalysts coming out for these industries in January and February

Clovis Oncology

Clovis Oncology Inc. (CLVS) has announced that it has commenced a secondary offering of its common stock to raise roughly $175 million in aggregate proceeds. The company intends to use the net proceeds of the offering for general corporate purposes. That includes commercial planning and sales and marketing expenses associated with the launch of Rubraca (rucaparib) in the United States and, if approved by the European Medicines Agency (EMA), in Europe.

ALSO READ: The Next 14 States to Legalize Marijuana

It also includes funding of its development programs, general and administrative expenses, acquisition or licensing of additional product candidates or businesses and working capital.

Shares of Clovis were trading down about 6% at $41.74 Tuesday morning, with a consensus analyst price target of $46.89 and a 52-week trading range of $11.57 to $46.97.

Voyager Therapeutics

Voyager Therapeutics Inc. (VYGR) saw its shares sink after the company reported that it would be making an addition to its executive team. Jane Pritchett Henderson has been appointed senior vice president and chief financial officer, effective January 1, 2017. Henderson brings over 28 year of experience in the life sciences industry and banking experience and leadership to this role.

ALSO READ: 3 Sleeper Biotechs That Could Bounce Back Strong in 2017

Shares of Voyager were last seen down nearly 10% at $11.52, with a consensus price target of $27.00 and a 52-week range of $8.12 to $21.08.

Apollo Endosurgery

Apollo Endosurgery Inc. (APEN) entered the market with a bang last week, and it is continuing to rise on strong momentum. This company came public through a merger with the previously public company Lpath. The deal originally was announced back in September 2016, but it was only completed last Thursday.

Under terms of the agreement, Lpath issued new shares of its common stock or rights to acquire its common stock to Apollo security holders. The Apollo security holders are expected to own roughly 95.8% of the combined company and the Lpath security holders are expected to own about 4.2%.

ALSO READ: 7 Key FDA Decisions and Catalysts Expected in January and February

Shares of Apollo were trading up nearly 30% at $15.76, with a consensus price target of $11.00 and a post-merger trading range of $12.16 to $20.00.

Tracon Pharmaceuticals

Tracon Pharmaceuticals Inc. (TCON) watched its shares make a handy gain on Tuesday after the company announced that it has reached an agreement with the FDA under a Special Protocol Assessment (SPA) for the protocol design, clinical endpoints and statistical analysis approach for its Phase 3 study evaluating TRC105 for the treatment of patients with advanced angiosarcoma.

Tracon intends to conduct the Phase 3 TAPPAS trial (a randomized Phase 3 trial of TRC105 and pazopanib versus pazopanib alone in patients with advanced angiosarcoma) at sites in both the United States and Europe. The primary endpoint of the trial is progression-free survival, with overall survival as a secondary endpoint.

ALSO READ: RBC Likes Large Cap Biotech Leaders for 2017

Shares of Tracon were trading up 10% at $5.40. The consensus price target is $13.75. The 52-week range is $4.00 to $9.21.

Related Articles