Phase 1 cinical trials for TARA's cancer treatment will begin later this year
Biopharmaceutical stock Protara Therapeutics Inc (NASDAQ:TARA) is surging today, up 11.9% to trade at $7.55 at last check. The U.S. Food and Drug Administration (FDA) approved the company's Investigational New Drug (IND) application for its non-muscle invasive bladder cancer treatment, TARA-002, with phase 1 cinical trials expected to begin by the end of the year.
Protara Therapeutics stock has had a rough year on the charts. Down 68.9% year-to-date, the shares hit an Oct. 6, record low of $6.18. However, today's pop has the equity breaking above the 60-day moving average, which had been guiding TARA lower since late February.
The security's typically quiet options pits are bursting with activity this morning. Options volume is running at 280 times the intraday average, and pacing for the top percentile of its annual range. So far, 2,902 calls and 184 puts have crossed the tape. The November 10 call is the most popular, followed by the October 10 call, with new positions being opened at both.
The brokerage bunch seems unlikely to chime in after the news, as there is hardly any room for bull notes. All four analysts in coverage carry a "strong buy" rating on TARA. Plus, the 12-month consensus price target of $40 is a 429.1% premium to current levels.