Amid Recent Failure, Targacept (TRGT) Could Rip on Approval of This Pipeline Drug...
Tweet Send to a FriendGet Alerts TRGT Hot Sheet
Trade TRGT Now!
Targacept (Nasdaq: TRGT) is ticking higher early following a bullish article from pharma trader Adam Feuerstein earlier today.
Feuerstein noted that Fidelity keeps buying into the company, despite almost every drug recently failing to get FDA approval. In addition, BVF Partners' Mark Lampert also has a 3.6 million stake in Targacept.
Why? Feuerstein says Targacept's TC-5619 could be a killer Alzheimer's and schizophrenia drug. TC-5619 shares a cognition-improvement mechanism with EnVivo Pharma's EVP-6124, which has positive positive results in recent Alzheimer's and schizophrenia trials. EVP-6124 recently met co-primary endpoints in a recent Phase 11b trial, improving cognition in patients with mild to moderate Alzheimer's.
The play could be a longer-term one; the next trial for TC-5619 on schizophrenia patients shouldn't produce results until the middle of 2013. Given that Targacept is going for below the $6 in cash that it holds, investors are essentially getting a play on TC-5619 for free.
Shares are up over 6 percent early Tuesday.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
Feuerstein noted that Fidelity keeps buying into the company, despite almost every drug recently failing to get FDA approval. In addition, BVF Partners' Mark Lampert also has a 3.6 million stake in Targacept.
Why? Feuerstein says Targacept's TC-5619 could be a killer Alzheimer's and schizophrenia drug. TC-5619 shares a cognition-improvement mechanism with EnVivo Pharma's EVP-6124, which has positive positive results in recent Alzheimer's and schizophrenia trials. EVP-6124 recently met co-primary endpoints in a recent Phase 11b trial, improving cognition in patients with mild to moderate Alzheimer's.
The play could be a longer-term one; the next trial for TC-5619 on schizophrenia patients shouldn't produce results until the middle of 2013. Given that Targacept is going for below the $6 in cash that it holds, investors are essentially getting a play on TC-5619 for free.
Shares are up over 6 percent early Tuesday.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- J.P. Morgan (JPM) CEO Dimon Might Have Enough Votes to Stay Chairman - NY Times
- Despite Massive Moves in Solar Stocks, Boon Times are Cleary Not Here (FSLR) (JASO) (SCTY) (RSOL)
- UPDATE: Move Inc (MOVE) Higher, Citron Says Long on Twitter
Create E-mail Alert Related Categories
FDA, Momentum Movers, Trader Talk
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
