ABEO is surging after the FDA granted 'breakthrough therapy' status for its leading gene therapy
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.