Q2 STOCKS TO BUY

Biotech Beat-Down: Alcobra Ltd and Transition Therapeutics Inc.

Alcobra Ltd (NASDAQ:ADHD) and Transition Therapeutics Inc (USA) (NASDAQ:TTHI) are significantly lower today in the wake of disappointing drug data

Jun 24, 2015 at 1:33 PM
facebook X logo linkedin


It's a down day for the broader equities market, as optimism over a debt deal for Greece fades. Meanwhile, among specific equities seeing significant losses in today's trading are biotechnology names Alcobra Ltd (NASDAQ:ADHD) and Transition Therapeutics Inc (USA) (NASDAQ:TTHI), as traders react to a disappointing batch of drug data.

ADHD, for example, is off 14.7% at $7.16, after data showed the company's treatment for Fragile X Syndrome -- a genetic disorder that may cause autism and attention deficit hyperactivity disorder -- failed its mid-stage trial goals. This negative price action is rare for a stock that's nearly doubled in value on a year-to-date basis.

It appears speculators were bracing for a pullback, however. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), ADHD's 10-day put/call volume ratio of 0.69 ranks in the 68th annual percentile. Elsewhere, nearly one-third of Alcobra Ltd's (NASDAQ:ADHD) float is sold short.

Meanwhile, TTHI is taking it on the chin today -- down 74% at $2.39, and fresh off a two-year low of $2.11. Sparking the sell-off are reports the firm's experimental Alzheimer's drug, ELND005, did not meet the primary endpoints of its Phase 2/3 study. The stock is now comfortably in the red on a year-to-date basis, and on track to close at its lowest point since April 2013.

The stock could see some additional headwinds in the near term, should more short sellers climb on board. Short interest rose 6.7% in the two latest reporting periods, but still only accounts for 1.7% of Transition Therapeutics Inc's (NASDAQ:TTHI) total available float.
 
 

“Buy This Stock Now!” - Expert Who Called 11x On TSLA

He called a rare 11x on Tesla…

But now, thanks to Elon & Trump’s new alliance…

He says there’s a new opportunity that could be 1,000x BIGGER than Tesla – and it could completely revolutionize a $23 Trillion market.

It’s trading for less than $5 per share right now…

But it won’t be under the radar for long.

Discover The 1,000x Bigger Elon Opportunity Here

GRAND SLAM COUNTDOWN

 
 

Featured Articles from Trusted Partners:

👀Learn How Dividends Create Passive Income for Life
Receive $200 Off Motley Fool Epic. The Motley Fool Epic $299 discounted offer is based on $499/year list price. Introductory promotion for new members only. Take control of your money and your portfolio with Motley Fool Epic.

💵New Income System Could Pay You $4,243 Monthly
You could collect an average of $4,243 per month starting as early as next week with a new payout system for income investors. New registrations are being accepted for investors who want to be in a position to start with their first payout next week.

🚀Easy 92% Crypto Dividends (No Coins Required)
COIN stock doesn't pay a dividend... But there's actually a new way to collect a massive dividend that's indirectly based on the stock and offers a terrific monthly income (currently yielding nearly 92% on a forward basis).

🤝Free Advisor Match with Wiseradvisor.com
Don't leave your retirement to chance! Get matched with a trusted financial expert for FREE and make the most of your tax refund. Get started now.

⚠️Dennis Quaid's #1 Warning for Americans
Here's the thing: life doesn't come with guarantees. The economy shifts, markets stumble, and years of hard work could slip through your fingers like sand. But it doesn't have to be that way for you. So request a free copy of this Gold & Silver Guide that will arrive right to your doorstep when you act now.

 

 
 

Follow us on X, Follow us on Twitter