Pioneering Cancer Treatment with QINLOCK and VimseltinibIntroduction
Deciphera Pharmaceuticals, Inc. (NASDAQ: DCPH) is at the forefront of developing innovative cancer treatments, with a keen focus on leveraging their proprietary switch-control kinase inhibitor platform. The company has made significant strides, particularly with its flagship product, QINLOCK, and the promising pipeline candidate vimseltinib, aiming for a transformative year in 2024.
Revenue and Profit Forecasts
Deciphera has projected an optimistic financial trajectory for 2023, with preliminary unaudited revenue for the fourth quarter estimated at approximately $47 million and full-year revenue expected to be around $162 million. This growth is largely attributed to the robust sales of QINLOCK, which alone contributed roughly $46 million in net product revenue in Q4 2023. The company's financial health is further underscored by its substantial cash reserves, amounting to approximately $352 million as of the end of 2023, ensuring operational and capital expenditure funding well into the second half of 2026.
Growth Drivers
The continued expansion and commercial success of QINLOCK in treating gastrointestinal stromal tumor (GIST) patients, along with the strategic rollout of vimseltinib for the treatment of Tenosynovial Giant Cell Tumor (TGCT) and potential applications in chronic graft versus host disease (cGVHD), underscore Deciphera's growth trajectory. The company's strategic partnerships, such as the distribution agreement with GENESIS Pharma for QINLOCK in Central and Eastern Europe, are pivotal to its international market expansion.
Recent Financial Performance
Deciphera's earnings in Q4 2023 beat analyst expectations, reporting an EPS of -$0.54 against the anticipated -$0.58. This performance reflects a 32.9% increase in quarterly revenue year-over-year, indicating strong commercial execution and market acceptance of its products. Analysts remain optimistic about the company's future earnings, projecting gradual EPS improvement through 2025.
Technical and Market Outlook
Deciphera's technical indicators and market sentiment appear positive, buoyed by recent financial results and the potential for its pipeline candidates. The company's strategic focus on developing first-in-class and best-in-class treatments for cancer positions it well within the biopharmaceutical sector for sustained growth and innovation.
Conclusion
Deciphera Pharmaceuticals is poised for significant growth in 2024 and beyond, driven by its innovative product portfolio, strategic market expansions, and strong financial position. With QINLOCK's continued success and the anticipated commercial launch of vimseltinib, Deciphera is on the cusp of evolving into a self-sustaining, multi-product company. As it advances its mission to improve the lives of people with cancer, the biopharmaceutical firm remains a compelling entity within the oncology space, promising exciting developments for investors and patients alike.
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NOT TRADING ADVICE. ALWAYS DO YOUR OWN RESEARCH.
Biotechnology
ROIV - BioTech reporting 2/13 as a LONG earnings tradeRoivant Scientes, on the 15 minute chart is experiencing increase volatility and volume now two
days out from its earnings report. The MACD with zero lag shows a bullish inflection in the lines
On the daily chart, ROIV gained 38% in 2023 but has been down 4 %YTD. The volume and
volatility show both are heightened in the pre-earnings run- up. The last report in November
was a double beat which is good prognosis for the one upcomings. This is a risky earnings
play, ROIV does not yet make money. However, because it lost less than forecasted, buyer
interest has increased. The call option for 2/16 for a strike of $12.50 is priced at $ 5.00
per contract. I suspect a long trade in shares may gain to $ 11.50 targeting the double top
at the turn of the year for a projected gain upside of about 7% (with a stop loss of 2.5%).
Considering that ROIV has gained 12% this past week, 7% in the next two days is about the
same trend angle. As to the call contract, I have considered 100% return as my expections
for the two days before the earnings. If earnings disappoint trader expectations and price fades
I will sell to close the contract. If earnings is as expected, I will roll the contract forward into
the March monthly and add a bit more capital into the trade.
INBS pumped on earnings crush= Watching for LONG maybeINBS crush earnings and went parabolic on an earnings beat. Basically, revenues fell but with
belt-tightening and good CEO actions it bled less cash than expected. The tourniquet is
working. The post-earnings pump was followed by a flush to the mid-Fib 0.5 support. Trader's
got their reward and called it a weekend before lunch. The chop index fell into the
consolidation zone and the MACD turned bearish. See the 5 minute chart image inserted to
the left. The RSI lines are about 50 maybe with a crossdown impending. I have this on watch
for a reversal up. Much will depend on general market strength on Monday. Biotechnology
is projected as a hot sector now. This stock was among the hottest of the day. Hoping for
a bullish continuation knowing that a trend down is likewise possible.
RYTM Biotech Penny Anti-Obesity LONGRYTM did a 120% run in November and December and then pivoted to start the year. It competes
in the anti-obesity drug space which is all the rage right now and has snack food manufactures
freaking out. The retrace was a shallow one in a sign of strength finding support at the 0.382
retracement level and then pivoting into a reversal in the past week. The dual TF RSI shows
the resurgence of bullish momentum. Earnings were okay, but not great. An FDA approval to add
to the mix of meds and lower their price in the competition may send RHYTHM into
launch mode. RYTM did 10% today such is the life of highly volatile penny stocks in what is
considered to be the likely hottest sector of the year. I will look toward OTM call options
for February 16th presently priced at about $200 per contract and a couple of shares shorted
to provide some hedging. Looking for 100% in 2-3 weeks. Will close 1/2 the position a few days
before upcoming earnings.
"NBIX Stock Breaks All-Time Highs, Strong Buy Opportunity!"NBIX Stock Breaks All-Time Highs: A Strong Buy Opportunity Emerges
Neurocrine Biosciences Inc. (NBIX) is currently making waves in the stock market as it breaks out of its all-time highs, signaling a promising opportunity for investors. After 14 years of steady upward momentum and price consolidation, NBIX appears poised for further growth, with technical indicators suggesting a bullish trend ahead.
The recent surge in NBIX's stock price comes on the heels of strong performance and positive sentiment surrounding the company's products and pipeline. With a focus on innovative treatments for neurological and endocrine disorders, Neurocrine Biosciences has established itself as a leader in the biopharmaceutical industry, attracting investors seeking exposure to high-growth sectors.
Technical analysis reveals that NBIX's current breakout is accompanied by the formation of a bull flag pattern, a bullish continuation pattern that often precedes further upward movement. This consolidation phase following a prolonged uptrend suggests that NBIX may be gearing up for another leg higher, providing an attractive entry point for investors.
To capitalize on this potential opportunity, traders are advised to monitor the 4-hour time frame closely, watching for confirmation of the breakout and additional upside momentum. A sustained move above the current resistance levels could signal further strength in NBIX's stock price, potentially leading to a retest of its previous all-time highs.
Investors considering a position in NBIX should also keep an eye on key support levels and market dynamics, as volatility in the broader market could impact the stock's trajectory. However, with a strong track record of growth and a robust pipeline of innovative therapies, NBIX appears well-positioned to weather any short-term fluctuations and deliver long-term value to shareholders.
In conclusion, Neurocrine Biosciences Inc. is breaking out of its all-time highs, presenting a compelling buying opportunity for investors. With 14 years of upward momentum behind it and a bullish pattern forming, NBIX looks poised for further growth in the coming weeks and months. By monitoring the 4-hour time frame and remaining vigilant for additional breakouts, investors can position themselves to capitalize on the potential upside in NBIX's stock price.
IBB - iShares Biotech EFT - SHORT (Wyckoff Redistribution)IBB looks to be in a Wyckoff Redistribution phase, with UTAD emerging currently.
On a larger time frame, looks as though a weekly H&S patter forming with the re-distribution section acting as the right shoulder.
My price target is $57, in line with the 1.618 fib extension.
IGMS a cash burning biotechnology stock SHORTIGMS is down about 70% YTD with no end is sight as the cash burn is greater than
the analyst's estimates.On the 2H chart, the midline of the Bollinger Bands has had
a persistent negative slope. Overall, IGMS is very shortable if shares can be found at
a low cost. I will watch for a correction of the upgoing price toward the middle of the Bollinger
Bands especially on a lower time frame such as 30-60 minutes and then target the bottom
of the Bollinger Bands on the daily chart for an estimated 25-30% profit. The entry would be at
the confluence of the POC line and then BB midline as a bounce down from that resistance.
This will be a great trade if S & P / SPY makes a deeper correction than already seen. There
was an opportunity one week ago and I think it will come again.
SLB a rising biotechology stock LONGSLN has appreciated 70% in the past month largly on the strength of an
earnings beat. Unlike many small cap biotechnology companies, SLN is
actually making money and beating analyst's estimates. On the 3O minute
chart, price is just below the POC line of the near term volume profile and
sitting on the dynamic support of a VWAP line. Strength lines are above 50
and the low time frame green line is above its counterpart. Ovreall, I see
SLN rising more after a little more consolidation. I will enter a long trade
with a buy stop at 9.18 to catch a trade when price crosses over the POC line,
I will set the stop loss at 9.14 below that line and target both 20% and
30% ROI in equal halves of the position.
FULC fades after a big move for a SHORT tradeFULC a biotechnology firm with a mixed earnings report early in the month just
printed a big move and then stalled at the NY lunch - hour and faded. Will the fade
continue or will there be an upward continuation? The 15 -minute chart seems to suggest
a downtrend:
1, The volume profile shows heavy trading at the top. This could be short sellers and
late-coming long trades. Once a trend down is underway, the short sellers will begin to
take profits buying to cover while the long trades will sell at a loss. Probably at this level
there will be more longs exiting than shorts until a substantial fall dictates the latter
to buy to cover.
2. New short sellers will pile into the trade pushing price down while few new long traders
will participate in accelerating the move down.
3. The relative strength on that indicator falling confirms the trend as does the Average Positive
Directional Index falling with the combined falling as well.
4. The mass index indicator documents a reversal
Accordingly,
I will take a short trade and assist the trend down in my own little way. I may take a trade of
100 shares and then sell a call option. In the meanwhile, I will take a put option striking
$5.00 for September 15th. I expect a decent realized profit from these trades in this
at least currently high volatility biotechnology penny stock.
NKTR High Tight Flag- Pre-Earnings High Flyer LONGNKTR is due for earnings on August 8th. The price from the opening bell on the 7th
pump nearly 100% to over $1.00 and then faded by a couple of cents.
The Price Momentum Oscillator and ZL MACD indicators tracked the high velocity
action into a high tight type bull falg which is often considered to be predictive
of another leg up of similar magnitude. I will be watching this in the premarket
upcoming and also at the report of earnings. I hope to catch a decent ride.
If I do get it I will quit the ride as soon as the indicators flip signals. This could
be a good one. Buyer anticipation and sentiment could yield great profit in little
time the money is exposed to the market.
BIOL- running earnings 8/10 LONGBIOL had a triple top in late July so this is a logical long target at 8,0, With earnings in less
than two days, volumes above the mean in the past couple of days and a decent
price-volume product trend coupled with a Price Monetum Oscillator without any signs
of topping out in a momentum stall or fade. I see this as a long pre-earnings play
with about 12% upside to the target from the current price. BIOL has no options. The
last earnings were a solid cash making top and bottom line beat. Go BIOL !
AADI - NASDAQ PENNY Biotech pre-earnings LONGAADI has earnings in two day. On the 30 minute chart, it is significantly below the highs of May
and June where it was in a wide ranged consolidation. After that in July price trended down
along the support of the second lower VWAP line into a reversal on August 1 shich also
ascended the VWAP lines. Upcoming earnings are in two days on the 9th. Prior two
earning reports lightly beat the top and bottom lines. This small biotechnology company
is making money unlike many of its cash-burning peers. The zero-lag MAC shows a line
cross under the histogram which flipped red to green as the lines rise. With this confirmation,
I will take a long trade into the earnings. There is no alternative in a call option in this case.
From the chart, targets are 6.9, 6.9, and 8.0 over a stop loss of 5.45. I expect this trade to be
finished in 4 days or less.
AMRX Post Earnings High Flyer - a hedge tradefor the next phase of the price action - the details are on the chart. Please comment
if you would like further details.
AMRX Biotech earnings Today LONGAMRX is a penny biotechnology stock with earnings out on the Friday the 4th.
As you can see on the 15 minute chart, it took off out of consolidation on
Wednesday afternoon in a burst of price volume and volatility into an
ascending parallel channel.
I will buy the stock in the pre-market attempting to exploit the momentum
going into earnings. If there is a miss, I will quickly liquidate and instead
buy put options expiring on 8/18 striking $ 5 and get as many as 100 of
them. This will be a highly risky trade albeit with a comparable reward.
I will position to 0.05% of my account cash balance and no more.
LABU is about to rally hard before a massive crashLABU is gearing up for a massive rally before it dumps. I have seen this chart pattern alot and I am looking forward to see how it plays out.
Not investment advice, please do your DD.
FLMD biotechology rising post earningsFLMD had earnings in May with positive earnings beating the expectation of analysts that
it would continue to lose quarter after quarter. Investors and traders have reacted with a
80% run-up in the month after those earnings. On the 30-minute chart besides the consistent
uptrend with minor corrections, what stands out for me is the increasing volumes relative
to volumes before the last earnings report. Off the chart, I find information that insider trading
with buying more shares on top of existing holdings leads me to believe that this company
expects increasing revenues and sustained earnings.
EBS a biotech company focused on vaccinesEBS is a small biotechnology company whose forte is the clean processing and manufacturing
facility that the FDA requires for certain bioprocessing to be certified for delivery of products
to end-user patients. It is not a research facility like the one in China that accidentally released
COVID and the global impact will be likely felt for another decade. EBS does depend on
federal support and income from contract work from vaccine manufacturers. There is
reasonable expectation or persistent and consistent revenues ongoing without fail unless
the FDA decertified the facilities. On the chart, EBS is in a flat bottom triangle on its base.
It is presently rising out of the triangle and towards the mean anchored VWAP It is just above
The POC line which functions as dynamic support in the demand zone. I see a long trade
with the stop loss below the POC line, the first target the blue line representing one standard
deviation above the mean VWAP at about 9.4 while the second target is the redline two
standard deviations above the mean VWAP at about 10.05 while the final target contemplates
that EBS will challenge the high in May of 10.75.
FULC Biotech Fib Level BouncdFULC on the 15 minute chart had a good response to favorable earnings and then retraced.
It is now bounding off the Fib 0.5 level and also confluent with the POC line of the volume
profile and the mean of the anchored VWAP. Buying volume appropriately overtook selling
volume on the reversal Luxalgo's Echo indicator, an AI predictive tool, suggests a 10% price
rise in the after-hours which is typically a busy trading period for biotechnology penny stocks.
I will take a long trade on FULC in after hours and take off a part of the position in the next
trading day and hold the rest through the weekend.
VYNE Biotech Post Earnings VYNE had a favorable earnings report last week. Fundamentally, analysts predict ( linked)
approximately a doubling of the shart price in the next year. Like many low share priced
biotechnology stocks the price is based on perceived future earnings which can be affected
by favorable FDA process, or well-received research at industry conferences and changing
financials within the company. In general, they have a low beta meaning these stocks are not
general market responsive and run on their own present or future merits.
On the 15-minute chart VYNE was trending down into earnings and the pivoted with a reversal
into the present. The Luxalgo AI "Echo indicator" predicts an upside of 20% in the next two
days before a consolidation period. The "Trendflex" indicator has flipped to postiive and green.
I will take this long trade with a stop loss of $0.15 per share and target of $9.00 over two days
for a 20% ROI and a R:R of 0.15 risk / $ 1.50 reward for a 10:1> Iwill only take biotechology
trades long with a high R:R due to the inheret risk level.
VRPX Biotechnology Penny Stock Post EarningsVRPX was on a downtrend from mid-February into a reversal the beginning of May. VRPX
beat earnings up still has no cash flow which is very common in this subsector. VRPX is priced
on the potential of future earnings. The short and long-moving averages ratio shows bullish
momentum also shows strength with an upper Bollinger Band "walk". Price has climbed over
the POC line so it is higher than the mean of the share price traded for the duration of the
volume profile. I see this as a risky long setup expectant of a 40% profit based on the target
of the YTD high in February.
BLUE Biotechnology New Earnings Catalyst LONGBlueBird Bio / BLUE had an earnigns report this past week showing earnings for the firat time
but revenue was far below analyst's projections. Price has appreciated 40% in the 4 weeks
since earnings which is about 500% annualized. GO BLUE.
On the daily chart, price was above VWAP and consolidating much of last fall then dropped
this YTD until the earnings report of last week. An uptrend is seen after the earnings.
This has been a significant reversal sustained over the past month
with price rising above the support / demand zone below it. At present, price is one
standard deviation below VWAP making it undervalued and ascending.
I see this as a risky long trade like many biotechology penny stocks but with a decent
probability of profit in consideration of a target of 6.15 which is the top of the long
term high volume area. the stop loss is just below the POC line of the volume profile
at 3.15 An entry at 4.62 ( limit order above SMA200 (redlne) would yield at profit of
1.50 with a risk of 0.48 making for a R:R of 3:1. Another earnings report is coming up this
week. If it is favorable, BLUE could go parabolic to hit the target in a day or two.
If not, it will be time to exit the trade.
$XBI ETF Biotechnology Bull FlagOn 4/11/23 our Algo alert software had a buy signal, today there is a really nice bull flag forming on the AMEX:XBI ETF Biotechnology sector
IMGN Biotech Post Earnings IMGN had great earnings the last days of April and has been trending up ever since.
It is riding the upper Bollinger band consistently in this past wee. The volume spike
after earnings has subsided but ongoing volume is at about 5X the moving average of
early April and March. Increased volume supports price momentum. The volume spike
here is obvious and significant.
IMGN announced a public offering. I see this as a positive. It is primed for increasing
growth but needs the fuel. Interest rates are high. Stock offering will raise cash
and all shareholders will be rewarded. IMGN is resting and consolidated in a narrow
range during this public offering. See also the favorable article from IBD linked below.
I see IMGN as a solid swing long until the next earnings. I will watch for an uncoiling
upon completion of the offering with resumption of momentum moving forward.
