Stocks On the Move: Teva Pharmaceutical Industries Ltd, SAGE Therapeutics Inc, and Heat Biologics Inc

Biotech stocks Teva Pharmaceutical Industries Ltd (TEVA), SAGE Therapeutics Inc (SAGE), and Heat Biologics Inc (HTBX) are making big moves in today's trading

Dec 6, 2016 at 3:27 PM
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U.S. stocks are mixed, as traders react to sliding oil and a round of economic data. Among specific equities in focus today are biotech stocks Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA), SAGE Therapeutics Inc (NASDAQ:SAGE), and Heat Biologics Inc (NASDAQ:HTBX). Here's a quick look at what's moving TEVA, SAGE, and HTBX.

  • TEVA is trading 5.9% lower at $34.87 -- a nearly 10-year low -- after the drugmaker announced president and CEO of the global generics division Siggi Olafsson would be stepping down at the end of the year. Some analysts are concerned that this may be indicative of a wider-spread weakness within the company. TEVA currently sits down more than 46% since the beginning of 2016, breaching long-term support in the $35-$36 area -- about half its all-time high. In the option pits, puts are unusually popular today, trading at three times their average intraday rate. Widening the scope, however, Teva Pharmaceutical Industries Ltd's Schaeffer's put/call open interest ratio (SOIR) of 0.45 sits at an annual low, indicating near-term option traders haven't been more call-skewed in the past 12 months. 

  • SAGE is up 7.8% at $55.84, after announcing an expedited development plan for its postpartum depression therapy, SAGE-547, with current Phase 3 trials being expanded to move the drug toward a potential 2018 new drug application (NDA). SAGE also received a price-target boost to $84 from $79 from Raymond James. SAGE has added more than 63% in the past six months, but is still in negative territory for the year, down 4.3% in 2016. Though absolute volume remains light, SAGE Therapeutics Inc calls are trading at three times their usual intraday clip, marking a change of pace. Bearish traders have dominated in the past 10 trading days, buying to open more than 16 puts for every call option.

  • HTBX is trading up 5.4% at $1.17, after presenting upbeat results from trials of its lung cancer drug, in combination with Bristol-Myers Squibb Co's (NYSE:BMY) opdivo. HTBX has had a volatile go in 2016, with shares peaking in early January at  $4.71, before losing over 90% of their value and bottoming out in May at just $0.40. However, it looks as though HTBX shares have recently found potential support from their 10-month moving average. Both brokerage firms weighing in remain firmly in Heat Biologics Inc's bullish corner, rating the stock a "strong buy."
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