Esperion Thera (ESPR) Puts Fly on Regeneron-Sanofi FDA Nod

Esperion Therapeutics Inc (ESPR) is plummeting on drug news, but competitor Regeneron Pharmaceuticals Inc (REGN) isn't faring much better

Jun 10, 2015 at 11:06 AM
facebook X logo linkedin


It's shaping up to be a dismal day for biotech stocks. Among the biggest losers on the Nasdaq is Esperion Therapeutics Inc (NASDAQ:ESPR), down 20.6% at $79.86 after a cholesterol drug (Praluent) made by competitors Sanofi SA (ADR) (NYSE:SNY) and Regeneron Pharmaceuticals Inc (NASDAQ:REGN) received a thumbs up from an FDA advisory committee. With ESPR on the short-sale restricted list, traders are flooding the stock's options pits to place downside bets.

Specifically, ESPR puts are crossing at 16 times the expected intraday rate, and potential buy-to-open activity is transpiring at the June 80 strike. By purchasing these in-the-money contracts for a volume-weighted average price (VWAP) of $4.80, these speculators think the shares will continue to move lower, and settle south of breakeven at $75.20 (strike less VWAP) at the close next Friday, June 19 -- when front-month options expire.

Short sellers are also counting on ESPR to pare some of its longer-term gains, as the stock is up over 97% year-to-date and over 400% year-over-year. Short interest on the equity rose 8.5% during the latest two-week reporting period, and now accounts for 16% of its total float.

While one might expect Esperion Therapeutics Inc (NASDAQ:ESPR) rival REGN to be rallying on the aforementioned news, shares of the latter are down 5% to test the $500 half-millennium level -- making it the leading loser on the S&P 500 Index (SPX). Weighing on the security is the panelists' recommendation to limit Praluent's use to patients with certain genetic predisposition, until more data can be gathered. Earlier, CNBC's Jim Cramer drew attention to this stipulation, and warned it could hurt Regeneron Pharmaceuticals Inc (NASDAQ:REGN).
 

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 C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI