3 Drug Stocks Flirting With New Highs

ImmunoGen stock is soaring after the company signed a deal with Jazz Pharmaceuticals to collaborate on drug development

Aug 29, 2017 at 1:04 PM
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U.S. stocks are trading cautiously higher, as traders shake off renewed geopolitical drama with North Korea. Among the stocks in the spotlight today are biotech stocks ImmunoGen, Inc. (NASDAQ:IMGN)Abeona Therapeutics Inc (NASDAQ:ABEO), and Catalent Inc (NYSE:CTLT). Here's a quick look at what's moving shares of IMGN, ABEO, and CTLT.

Immunogen Strikes a Deal with Jazz, Stock Soars

ImmunoGen stock is up 18.7% to trade at $7.67, after the company signed a deal with Jazz Pharmaceuticals to develop and commercialize antibody-drug conjugate products. As a part of the agreement, Jazz will pay ImmunoGen $75 million upfront, plus up to $100 million in development funding over seven years.

Today's jump ranks IMGN as the third best percentage gainer on the Nasdaq. Earlier, IMGN shares touched an intraday high of $7.70, just under the stock's 52-week high of $8.04 hit on July 6. The biotech stock is now up 275% year-to-date, with pullbacks contained by its 80-day moving average. A short squeeze could add fuel to IMGN's fire, too. Short interest represents more than 20% of ImmunoGen's total available float, or roughly seven days' of pent-up buying demand, at IMGN's average pace of trading.

FDA Nod Sends Abeona Stock Soaring

Shares of Abeona Therapeutics were last seen up 12.5% to trade at $10.69, after the company received "breakthrough therapy" status from the Food and Drug Administration (FDA) for its leading gene therapy, EB-101. The FDA nod grants the company priority review and expedites the approval process. 

Earlier, the biotech stock touched a more than two-year high of $10.90, and is now up 123% year-to-date. A short squeeze could also help ABEO shares climb higher, as short interest represents more than a quarter of the stock's total available float. At the equity's average daily trading volume, it would take more than 13 sessions to buy back the shorted shares.

Analyst: Catalent Continues to 'Under-Promise and Over-Deliver'

Taking the top spot on the New York Stock Exchange (NYSE) today is Catalent stock, last seen up 15.5% to trade at $40.85. Driving the shares higher are the company's better-than-expected fiscal fourth-quarter earnings, which sparked price-target hikes from no fewer than four brokerages. Piper Jaffray was one such brokerage, raising its price target on CTLT by 36%, to $45 from $33, and saying the drugmaker "continues to under-promise and over-deliver." 

Earlier, CTLT hit a record high of $41.29, and is poised to close well above its 60-day moving average, which has acted as resistance since late July. Still, of the 10 analysts following the stock, three rate it a lukewarm "hold," leaving room for additional bullish notes in the near term. 

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