SESEN Bio - A possible Jump & Run?
The market is bleeding, but may be you know this quote:
"Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria" - Sir John Templeton
So the actual question is, where are we right now? I guess "Euphoria" is actually over and we are on our steady way down to realistic valuations.
Let's talk facts: As of March 31, 2022, SSESN had $169.8 million in cash and cash equivalents, no outstanding debt and fewer than 0.2 million outstanding warrants.
What is in their pipeline?
They are currently developing Vicineum, a locally administered fusion protein, for the treatment of non-muscle invasive bladder cancer (NMIBC).
What happened to the stock price?
A few months ago the FDA had determined that it cannot approve the BLA for Vicineum in its present form and has provided recommendations specific to additional clinical/statistical data and analyses in addition to Chemistry, Manufacturing and Controls (CMC) issues pertaining to a recent pre-approval inspection and product quality. The stock price dropped dramatically and now trades around 0.50$.
What is BLA?
BLA, Biologics License Application, is a request for permission to introduce, or deliver for introduction, a biologic product into interstate commerce (21 CFR 601.2).
What opportunities lie ahead?
Let me tell you, trading bio-tech stocks requires strong guts and control of emotions - I speak from experience. Currently the company is considering two things:
1. Reverse Split, so that they will remain listed on the NASDAQ
2. Selling the company to maximize shareholder value
The development of Vicineum will continue and they seek another meeting with the FDA soon to discuss further steps for BLA approval with an additional Phase 3 testing.
The 2nd option sounds like a good strategy, the balance sheet looks healthy, the product itself seems promising, so that I had to invest a little bit (10% of my account size). As soon as the company had communicated that they consider selling the company, the stock jumped a nice 30% - luckily I had bought it a few days earlier.
Now we can see a little bit of pullback, which seems more like accumulation, rather than distribution. The volume on the declining candles is lower and the strong buy volume after the news actually speaks a different story. You can check my chart for levels (white are monthly and purple are the weekly levels of support and resistance).
Let's see what will happen, but the most important thing is patience, as well as proper risk management.
Stay healthy!
"Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria" - Sir John Templeton
So the actual question is, where are we right now? I guess "Euphoria" is actually over and we are on our steady way down to realistic valuations.
Let's talk facts: As of March 31, 2022, SSESN had $169.8 million in cash and cash equivalents, no outstanding debt and fewer than 0.2 million outstanding warrants.
What is in their pipeline?
They are currently developing Vicineum, a locally administered fusion protein, for the treatment of non-muscle invasive bladder cancer (NMIBC).
What happened to the stock price?
A few months ago the FDA had determined that it cannot approve the BLA for Vicineum in its present form and has provided recommendations specific to additional clinical/statistical data and analyses in addition to Chemistry, Manufacturing and Controls (CMC) issues pertaining to a recent pre-approval inspection and product quality. The stock price dropped dramatically and now trades around 0.50$.
What is BLA?
BLA, Biologics License Application, is a request for permission to introduce, or deliver for introduction, a biologic product into interstate commerce (21 CFR 601.2).
What opportunities lie ahead?
Let me tell you, trading bio-tech stocks requires strong guts and control of emotions - I speak from experience. Currently the company is considering two things:
1. Reverse Split, so that they will remain listed on the NASDAQ
2. Selling the company to maximize shareholder value
The development of Vicineum will continue and they seek another meeting with the FDA soon to discuss further steps for BLA approval with an additional Phase 3 testing.
The 2nd option sounds like a good strategy, the balance sheet looks healthy, the product itself seems promising, so that I had to invest a little bit (10% of my account size). As soon as the company had communicated that they consider selling the company, the stock jumped a nice 30% - luckily I had bought it a few days earlier.
Now we can see a little bit of pullback, which seems more like accumulation, rather than distribution. The volume on the declining candles is lower and the strong buy volume after the news actually speaks a different story. You can check my chart for levels (white are monthly and purple are the weekly levels of support and resistance).
Let's see what will happen, but the most important thing is patience, as well as proper risk management.
Stay healthy!
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