Macrogenenics sold-off 75% from a moderately bad earnings miss 2 weeks ago. It will be a slow
and gradual recovery in the 10 -12 weeks until the next earnings unless a favorable catalyst
appears. 5 patients died in a clinical study about the same time as earnings were due. This was
a news catalyst amplifying the earnings miss. What is unclear is the total number of patients
being studied, how many who died got the developmental drug and how many got the placebo.
Two deaths were deemed to be unrelated to that drug possibly because they did not receive
it. No matter, the investigation continues. I suspect the clinical trial is at least suspended
and could get terminated. MGNX has six other drugs in development. None are past Phase 3
and so none are revenue producing. MGRX could fail financially or clinical but then again it
could recover. If fialing it could sell-off its intellectual property and clinical trials data or
look for a rich uncle looking to get in to the cancer drug market. Only time will tell.
I see this as a very risky long trade targeting fib levels. I will devote a small capital position
here anticipating anything from a 200-250% return to hitting a 25% stop loss and calling it
finished. IF MGNX can move up I will make sure the stop loss is raised and diminshed a bit.
Those without risk appetite and a pinch of greed should take a pass on this one. Another piece
of bad news could be catastrophic while on the other hand clearance of liability by the FDA and
resumption of the clinical trial would be quite uplifting. It could be a coin flip.
and gradual recovery in the 10 -12 weeks until the next earnings unless a favorable catalyst
appears. 5 patients died in a clinical study about the same time as earnings were due. This was
a news catalyst amplifying the earnings miss. What is unclear is the total number of patients
being studied, how many who died got the developmental drug and how many got the placebo.
Two deaths were deemed to be unrelated to that drug possibly because they did not receive
it. No matter, the investigation continues. I suspect the clinical trial is at least suspended
and could get terminated. MGNX has six other drugs in development. None are past Phase 3
and so none are revenue producing. MGRX could fail financially or clinical but then again it
could recover. If fialing it could sell-off its intellectual property and clinical trials data or
look for a rich uncle looking to get in to the cancer drug market. Only time will tell.
I see this as a very risky long trade targeting fib levels. I will devote a small capital position
here anticipating anything from a 200-250% return to hitting a 25% stop loss and calling it
finished. IF MGNX can move up I will make sure the stop loss is raised and diminshed a bit.
Those without risk appetite and a pinch of greed should take a pass on this one. Another piece
of bad news could be catastrophic while on the other hand clearance of liability by the FDA and
resumption of the clinical trial would be quite uplifting. It could be a coin flip.
Note
As a correction MGNX does have one revenue-producing drug on the market forbreast cancer; sales data is unknown to me. This does not change the overall picture
by much especially since that drug is only indicated for patient cases where there has been a failure on other advanced regimens and the cancer is a high-stage metastatic case. It does represent something that MGNX could sell off to save itself kind of like the tourniquet and later amputation to stop the bleeding of a limb in a
trauma patient such as warfare, GSW or MVA.
Note
The ambulance chasers are setting up a case. Those investrs who got crushed may find refuge there. I try to buy the bottoms. stockhouse.com/news/press-releases/2024/05/28/lost-money-on-macrogenics-inc-mgnx-contact-levi-korsinsky-regarding-an-ongoing
Trade active
Price action a little higher more or less sideways. Patient with full position.Note
Sideways. Holding patient for a move up.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.