Two Healthcare Stocks Moving In Opposite Directions

CERS stock is on track for its best day since May

Managing Editor
Jan 24, 2018 at 9:55 AM
facebook X logo linkedin

Two healthcare stocks are making noise this morning, for different reasons. Biotech Puma Biotechnology Inc (NASDAQ:PBYI) reported a setback with its cancer drug in Europe, while blood transfusion specialist Cerus Corporation (NASDAQ:CERS) scored a big win with a late-stage study. Below is a quick look at shares of PBYI and CERS.

Puma Biotechnology Hit With Downgrade Amid Europe Concerns

Puma Biotechnology is down 26.8% to trade at $66.55 this morning, on track for its worst single-day session in over two years and landing on the short-sale restricted list, after the company indicated a European regulatory panel was unlikely to give the company's breast cancer drug, Neratinib, a positive recommendation. As a result, Cowen and Company downgraded the drug stock to "market perform" from "outperform," while also issuing a price-target cut to $68 from $123. Leerink, RBC, and Credit Suisse all significantly lowered their price targets, as well.

The news today has PBYI stock trading below its 200-day moving average for the first time since May, and short sellers are likely cheering today's collapse. The 2.67 million shares sold short represents a healthy 11% of PBYI's total available float, and nearly five days' worth of pent-up buying power. 

Cerus Stock Soars After Upbeat Study

Cerus Corporation announced its late-stage red blood cell transfusion study for thalessemia patients met its main efficacy and safety goals. At last check, CERS stock is up 17.3% to trade at $5.08, earlier touching an annual high of $5.24. The equity has been on fire lately, with strong support from the 50-day moving average helping it more than double in value over the past six months.

A short squeeze could provide more fuel for the equity. Although short interest fell 4% during the last two recent reporting periods, it still represents more than 9% of CERS' total available float. At the security's average pace of trading, it would take about 14 sessions for the remaining pessimistic positions to be repurchased.



Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI