Long Position on DCPH @ $21.50 on 1/12/2023 (Momentum)

Deciphera Pharmaceuticals, Inc. (DCPH) develops drugs to enhance the lives of cancer patients by addressing key mechanisms of drug resistance that limit the rate and durability of response to existing cancer therapies in the United States and internationally. 

Its lead drug candidate is QINLOCK used for the treatment of gastrointestinal stromal tumors (GIST), as well as in INTRIGUE Phase 3 study to treat second-line GIST.

The company is also developing vimseltinib, an orally administered, potent, and highly selective switch-control kinase inhibitor of colony stimulating factor 1 receptor (CSF1R) for the treatment of tenosynovial giant cell tumor (TGCT); and DCC-3116 to treat RAS/RAF mutant cancers that is in the preclinical-stage. 

Shares have formed a bullish "flag" and higher share prices are expected. On November 3rd, DCPH reported a 3rd Quarter September 2022 loss of $0.55 per share on revenue of $36.0 million. The consensus estimate was a loss of $0.57 per share on revenue of $33.2 million. Revenue grew 54.9% on a year-over-year basis.

DCPH also announced data from the phase III INTRIGUE study evaluating Qinlock using circulating tumor DNA (ctDNA) from a subgroup of patients with GIST previously treated with Gleevec who harbor mutations in KIT exon 11 and 17/18 only. The study compared Qinlock to sunitinib for treating second-line GIST patients with mutations in KIT exon 11 and 17/18 only.

Data from the same showed that patients treated with Qinlock had median progression-free survival of 14.2 months versus 1.5 months for patients receiving sunitinib. 

Higher share prices are expected.

Entry Point: $21.50

Stop Loss: $19.75

Trading Range: $6.51 to $22.26

Target Price: $24.60

Position closed on 1/19/2023 at price of $19.75 with a -8.14% loss in 7 days.

Back to Portfolio