Human Genome Sciences - HGSI - close 26.28 change +0.04 stop 24.65
Human Genome Sciences is a commercially focused biopharmaceutical company. The Company has three products in late-stage clinical development: BENLYSTA for systemic lupus erythematosus (SLE), ZALBIN for chronic hepatitis C, and raxibacumab for inhalation anthrax. In July and November 2009, the Company reported that BENLYSTA successfully met its primary endpoints in two Phase III clinical trials in patients with systemic lupus. In March 2009, the Company reported that ZALBIN successfully met its primary endpoint in the second of two Phase III clinical trials in chronic hepatitis C. HGS submitted a biologics license application (BLA) for ZALBIN in the United States in November 2009, and Novartis submitted a marketing authorization application (MAA) under the brand name JOULFERON in Europe in December 2009.
Target(s): 27.20, 28.20, 29.20
Key Support/Resistance Areas: 29.80, 28.24, 27.80, 26.80, 25.00
Time Frame: Several weeks
Why We Like It:
We're back for another long play in HGSI which produced a winner for us a few weeks ago. The biotech sector has been a relative strong performer recently as it has maintained its upward trend line from the 7/1 lows while the broader market has not. I like HGSI and I suggest we initiate long positions now. The stock is trading in an upward channel and bounced nicely today at the bottom of the channel. HGSI is above its 20-day and 50-day SMA's and looks poised to make another higher high. I'm looking to make $1.50 to $3.00 on this trade. We'll use a stop at $24.65 which is below the 50-day SMA.
Suggested Position: Buy September $28.00 CALL, current ask is $0.98
Entry on August xx
Earnings Date N/A (unconfirmed)
Average Daily Volume: 2.9 million
Listed on August 12, 2010