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Myriad Genetics (MYGN – 93-13/16) is poised to open higher after it was announced that the company will acquire worldwide exclusive rights to develop, manufacture and market a drug aimed at the prevention and treatment of prostate, colon, and other cancers. The compound, which will be known as MPC-7869 going forward, has completed Phase IIa human clinical trials and has demonstrated a promising safety profile. Human clinical trials with MPC-7869 have also demonstrated good oral bio-availability and pharmacokinetics.
MYGN licensed rights to the cancer drug from closely held Encore Pharmaceuticals, an early-stage biopharmaceutical research and development firm in which MYGN has made an equity investment.
November was a rocky month for MYGN, as the company plunged from 138 down to around 67. This area is the site of the equity's 10-month moving average, which seems to have offered a platform for the recent rally in the shares.
Option activity on the stock is quite muted, as the peak front-month open position is represented by just 520 contracts on the December 75 put.