Upcoming Catalysts For These BioPharmas Provide Potential Upside
Scott Matusow | Feb 20, 2013 05:25AM ET
This week, the focus on 3 small cap biopharmas that offer excellent upside catalyst trade opportunity. Sometimes, when biopharmas have catalysts coming up in the short term, their stock prices tend to run up higher. However, if the catalyst is a minor event, and/or the company and/or its developmental drugs is not very good, the stock price often times does not move higher -- sometimes even falling to a lower price.
Cyclacel Pharmaceuticals (CYCC)
Cyclacel is expecting Jenn McNary , mother of a child who suffers from DMD, who has been one of many strong advocates petitioning the organization to allow accelerated approval of Eteplirsen.
The chart has just begun making a couple of reversal candles indicating a higher move is possible once it breaks out of its current wedge. After this point, the stock could retest its former high of $45.
Short sellers in Sarepta could get severely burned for failure to recognize the ever changing regulatory environment in the FDA these days. With Obama Care coming into sharp focus in 2014, we can also expect to see more small cap biotechs rally on the speculation that they might possess new treatments for terrible and deadly diseases -- expect merger and acquisition activity to increase in the next year as well because of these factors.
Disclosure: I am long DARA, CYCC
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