Q2 STOCKS TO BUY

FDA News Sends 2 Biotech Stocks Reeling

Madrigal Pharma's big day is lifting Viking Therapeutics stock

Managing Editor
May 31, 2018 at 2:55 PM
facebook X logo linkedin


The Dow is down triple digits today, as Canada and the European Union (EU) vowed to fight back against President Donald Trump's steel and aluminum tariffs. Among individual stocks making notable moves, drug stocks scPharmaceuticals Inc. (NASDAQ:SCPH) and Crispr Therapeutics AG (NASDAQ:CRSP) gapped lower this morning, while fellow biotech name Viking Therapeutics Inc (NASDAQ:VKTX) is soaring. Here's a closer look at how shares of SCPH, CRSP, and VKTX are trading today.

Drug Setback Sends SCPH Stock to Bottom of Nasdaq

scPharmaceuticals stock is down 30% to trade at $9.97 -- one of the worst stocks on the Nasdaq today -- after the Food and Drug Administration (FDA) identified deficiencies in the company's marketing application for its heart failure treatment. Although the issues were not specified, the drug company will work with the FDA to address the problems. The news sent SCPH stock as low as $8.91 today -- within striking distance of its record low of $8.88 set on April 30. The equity is on track for its worst week in history.

Although the stock has found itself on the short-sale restricted (SSR) list today, plenty of short sellers are likely toasting the collapse. Short interest increased by a whopping 76% in the two most recent reporting periods, to 980,000 shares -- a record high.

FDA Delay Ignites Crispr Therapeutics Stock Pullback

Last night, the FDA placed a clinical hold on Crispr's new drug application for CTX001, a stem cell therapy treatment for sickle cell disease. The drug was the part of collaboration between Vertex Pharmaceuticals (VRTX) and Crispr Therapeutics. In response, CRSP stock is down 8.9% to trade at $67. CRSP shares are now on track to finish below their 10-day moving average for the first time in nearly a month, and are in danger of snapping their four-week winning streak. Nevertheless, CRSP stock has still quintupled in 2018, and touched a record high of $73.90 on May 24.

Analysts at SunTrust Robinson said the application hold "clearly raises questions." However, most brokerage firms are bullish on CRSP stock. The biotech boasts five "strong buy" ratings, compared to just two "holds."

Viking Therapeutics Stock Gets Halo Lift From MDGL

Viking Therapeutics stock is up an incredible 80% to trade at $8.99 -- the second-best stock on the Nasdaq -- after Madrigal Pharma's (MDGL) non-alcoholic steatohepatitis (NASH) treatment met its main goal in a mid-stage study. Viking stock is getting a halo lift, as the company is developing its own treatment for NASH. Earlier today, VKTX scored a three-year high of $9.36, and is currently on track for its best single-day performance since December 2015. 

The biotech stock is ripe for a short squeeze, too. Short interest has fallen by nearly 10% in the two most recent reporting periods, yet the 2.64 million shares sold short represents a healthy 14% of VKTX's total available float. It would take almost four days to cover these bearish bets, at the equity's average pace of trading.

Call volume has exploded today. Over 15,000 calls have exchanged hands so far -- 11 times the average intraday amount, and volume already at an annual high. The June 7.50 call is most popular, with new positions likely being bought to open.

 
 

“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