5 Biotech Stocks on the Brink of Breaking Out

5 Biotech Stocks on the Brink of Breaking Out July 25, 2016
By Mark Terry, BioSpace.com Breaking News Staff

Predicting stocks that are going to break out is not for the fainthearted, but Roberto Pedone, writing for TheStreet, takes a look at five biotech companies that he thinks, for one reason or another, is on the brink of going big.

BioPharmX

Menlo Park, California’s BioPharmX is currently trading for $0.90 per share. The company is a specialty pharmaceutical focused on drug delivery products for women’s health and dermatology. Pedone’s prediction is based on a recent jump from a 52-week low of 50 cents per share and an increase in trading volume.

The company has had some positive clinical trial results recently, including a comparative study of oral and topical minocycline formulations for acne, and positive topline results from a Phase IIa safety study LINK http://biopharmx.investorroom.com/2016-06-29-BioPharmX-Announces-Positive-Topline-Phase-2a-Clinical-Trial-Results-for-BPX-01-in-Patients-with-Acne-Causing-Bacteria of BPX-001 topical gel of minocycline for acne.

RegenxBio

RegenxBio is currently trading for $7.74. The company focuses on recombinant adeno-associated virus (AAV) gene therapy using a proprietary NAV Technology Platform. The company has several ongoing Phase I, II and preclinical trials.

“Traders should now look for long-biased trade in Regenxbio if it manages to breakout above its 20-day moving average of $7.99 a share and then above more near-term overhead resistance levels at $8.25 to $8.40 a share with high volume,” Perone writes. “Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 167,270 shares. If that breakout fires off soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $9 to $9.75, or even $10 to its 50-day moving average of $10.17 a share.”

Intercept Pharmaceuticals

Intercept Pharmaceuticals is currently for $158.33. On May 27, the U.S. Food and Drug Administration (FDA) granted the company’s Ocaliva accelerated approval for patients with primary biliary cholangitis, or PBC, in combination with ursodeoxycholic acid (UDCA). And the company has been rumored to be a hot takeover target for months, with potential buyers including Gilead Sciences , AstraZeneca , Shire , and GlaxoSmithKline .

Pedone says that the stock has been trending upward over the last month or so, noting it “has been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of Intercept Pharmaceuticals within range of triggering a big breakout trade above some key overhead resistance levels.”

Lipocine

Lipocine is currently trading for $3.66. The company focuses on products for use in men’s and women’s health using a proprietary drug delivery platform. On June 29, the FDA announced a Complete Response Letter (CRL) for the company’s LPCN 1021 to treat adult males for conditions related to a testosterone deficiency or absence. The company is working with the FDA to determine how to proceed.

Pedone, looking at technical factors, writes, “Traders should now look for long-biased trades in Lipocine if it manages to break out above Thursday’s intraday high of $3.71 a share and then once it clears more key resistance levels at $3.86 to its 20-day moving average of $4.01 a share with high volume.”

Accuray

And finally, Accuray is trading at $5.38. Headquartered in Sunnyvale, California, Accuray is a radiation oncology company. On July 21, Accuray announced preliminary results from a Phase II trial that evaluated its once-daily accelerated partial breast irradiation (APBI) in patients treated with the TomoTherapy System.

“The Phase II trial results are very encouraging for a carefully selected patient population, and should be considered by all radiation oncologists when evaluating APBI treatments for their low-risk patients,” said Ugo De Paula, a professor with the Department of Radiation Oncology at the San Giovanni-Addolorata Hospital, in Rome, Italy, in a statement. “In our experience we found there was extremely good patient compliance with their APBI treatment regimen because of a very short, 10-day schedule and well-tolerated treatments.”

Pedone writes, “Trades should now look for long-biased trades in Accuray if it manages to break out over that key downtrend line that will trigger above some near-term overhead resistance levels at $5.40 to $5.50 a share with volume that hits near or above its three-month average action of 674,973 shares.”

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