PropThink’s Week in Healthcare Equities

Mr. Deryugin had an inkling that Immunomedics would get some attention this year for its ADC program, and the stock has climbed 25% since PropThink’s initiation, with a significant rally over the last two weeks. Deryugin even laid out an options play earlier this month.

It seems the biotech community got a little ahead of itself in expectation of an accelerated approval for Sarepta. The official word this week is that the company isn’t likely to file a NDA until next year. As investors step out of a stagnant stock, we think it’ll be time to add to a position.

Keryx has a lot going on in the second half of this year. In our view, most of these catalysts are de-risked based on clinical and regulatory evidence at hand. Here’s why to consider getting long.

Mr. Napodano revisited the Neuralstem investment thesis and some new pre-clinical data from the company. Spinal cord injuries present an immense market, and while stem cells are still experimental, there’s evidence of potential. The stock ended the week up 8% following PropThink’s report.

PropThink highlighted recent IPO Stemline, a company developing therapies to target cancer stem cells. There are a number of reasons to believe in the short-term trade, and the stock is already up 10% since the PropThink’s report.

PropThink’s subscribers have been picking up BDSI for both fundamental and technical reasons. We believe the stock is undervalued, but the chart is setting up bullish, particularly with incremental catalysts in the second half. Investors and traders can take advantage of this oversold stock.

Vanda has been on a tear this month and is due for a correction (we’re not particularly bullish on the business’ prospects). Our note to subscribers that it might be worth a short position as the stock ran out of steam was premature; still, VNDA is worth a look for the very same reasons.

Last week, PropThink said that Celsion might rally as retail investors jumped back on board. Fundamentally, we’re not interested, but CLSN proved a nice momentum trade as some big names jumped on board the promotion of this biotech. The trade was worth 60% into the end of the week as CLSN announced an equity sale on Friday. The VNDA scenario might translate to CLSN with the “pump” winding down.

Given the broad following and publicity of the RMTI run-up trade outlined at, and that RMTI had just finished a capital raise, PropThink said the trade was worth pursuing. RMTI has returned more than 25% since bottoming last week. Nevertheless, we’ve been bearish on the fundamentals since late last year.