This company just completed a drug trial that saw stunning results after a single day of treatment. Patients saw a 50% decrease in symptoms after just one day.
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ALDR - Alder BioPharmaceuticals - Company Profile
Alder BioPharmaceuticals, Inc., a clinical-stage biopharmaceutical company, discovers, develops, and commercializes therapeutic antibodies in the United States, Australia, and Ireland. The company??s lead product candidate includes ALD403, an antibody, which is in Phase II clinical trial to target calcitonin gene-related peptide for the prevention of migraine. It also develops ALD1910, a genetically engineered monoclonal antibody that is in preclinical study for the treatment of migraine; and Clazakizumab, an antibody, which has been completed Phase IIb clinical trial that inhibits the pro-inflammatory cytokine interleukin-6 for the treatment of rheumatoid and psoriatic arthritis. In addition, the company has preclinical programs in the discovery phase for various indications. Alder BioPharmaceuticals, Inc. was incorporated in 2002 and is headquartered in Bothell, Washington. Company description from FinViz.com.
Alder just reported phase III results for Eptinezumab for the treatment of migraines. The patients had an average of 16 migraine episodes per month. After treatment with Eptinezumab, migraines decreased 50% on day one and 15% of the patients reported zero incidents for the entire 12 weeks of the trial. While the endpoint of eliminating migraines for everyone was not met, everyone did receive relief while some were cured. This means the drug will be approved and could become very profitable.
In addition, Alder settled its patent dispute with Teva over the drug in an EU patent case. Under the terms of the settlement Alder will withdraw its appeal, make a one time payment of $25 million to Teva. They will make a second $25 million payment on approval of a biologics license application for the drug. Following the commercial launch of the drug they will pay an additional $75 million when sales reach $1 billion and another $75 million at the $2 billion level. They will also pay royalties to Teva of 5% to 7%. This also gives Alder access to Teva's patent portfolio and a clear path to commercialize the drug on a global basis.
The company has secured private financing of $250 million to fund the payments to Teva, the drug application process and the marketing effort to commercialize the drug.
Expected earnings Feb 6th.
Shares rallied sharply over the last two weeks and they have failed to sell off after their big gains. The stock closed 5 cents under a 6-month high on Friday.
Buy ALDR shares, currently $17.85, initial stop loss $16.25.
Alternate position: Buy Feb $20 call, currently 80 cents, initial stop loss $16.25.
We will hold the call over earnings then exit.
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Entry disclaimer: To avoid an unfavorable entry point, we will not launch a new play if the stock gaps more than $1.00 at the market open.