Long Position on PRTK @ $25.50 on 7/18/2017 (Momentum)

Bullish Cup & Handle on PRTKParatek Pharmaceuticals, Inc. (PRTK) is a clinical stage biopharmaceutical company.

The company focuses on the development and commercialization of therapeutics based upon tetracycline chemistry in the United States. Its lead product candidates include omadacycline, a broad-spectrum, intravenous, and oral antibiotic, which is in Phase III clinical stage for use as a monotherapy antibiotic for acute bacterial skin and skin structure infections (ABSSSI), community-acquired bacterial pneumonia (CABP), urinary tract infections, and other community-acquired bacterial infections; and Sarecycline, a tetracycline-derived compound that is in Phase III clinical trial for the treatment of acne and rosacea.

The company has special protocol assessment agreements with Food and Drug Administration for the Phase III studies for ABSSSI and CABP. It has collaborative research and license agreement with Allergan plc to research, develop, and commercialize tetracycline products; license agreement with Tufts University to develop and commercialize products for the treatment or prevention of bacterial or microbial diseases, or medical conditions; and license agreement with Shin Nippon Biomedical Laboratories Ltd. to develop TO-2070 for the treatment of acute migraine.

The company also has a cooperative research and development agreement with the U.S. Army Medical Research Institute of Infectious Diseases to study omadacycline against pathogenic agents causing infectious diseases.

Shares have formed a bullish "cup and handle" and are in the process of breaking out of this formation. Note the 50-day moving average on the formation. Yesterday, the company announced positive top-line results from a pivotal Phase 3 clinical study comparing its once-daily, oral investigational antibiotic, omadacycline, to twice-daily oral linezolid in the treatment of acute bacterial skin and skin structure infections.

The study met all of its primary and secondary endpoints requiredto support approval for this indication by the U.S. Food and Drug Administration and the European Medicines Agency. The news should shelp shares break-out of the formation. Read our blog about the company.

52-Weeks Trading Range: $9.80 - $26.10

Entry Point: $25.50

Stop Loss: $24.80

Target Price: $28.10

Updates

7/19/2017 12:10:17 PM

PRTK closed at $23.50

Position closed on 7/19/2017 at price of $23.50 with a -7.84% loss in 1 days.

Back to Portfolio