Long Position on NUVL @ $78.00 on 2/6/2024 (Fundamentals)

Nuvalent, Inc. (NUVL), a clinical stage biopharmaceutical company, engages in the development of therapies for patients with cancer.

Its lead product candidates are NVL-520, a brain-penetrant ROS1-selective inhibitor to inhibit ROS1 fusions that express the normal ROS1 kinase domain without any drug-resistant mutations and remain active in the presence of mutations conferring resistance to approved and investigational ROS1 inhibitors, which is under Phase I development; NVL-655, a brain-penetrant ALK-selective inhibitor, to address the clinical challenges of emergent treatment resistance, central nervous system-related adverse events, and brain metastases that might limit the use of first-, second-, and third-generation ALK inhibitors that is under Phase ½ clinical trial; and NVL-330, a brain-penetrant human epidermal growth factor receptor 2 (HER2)-selective inhibitor designed to treat tumors driven by HER2ex20, brain metastases, and avoiding treatment-limiting adverse events including due to off-target inhibition of wild-type EGFR, which is ongoing IND-enabling studies.

The company was incorporated in 2017 and is headquartered in Cambridge, Massachusetts.

Please note, this stock reports earnings on Tuesday, February 13th.

With this stock's upward momentum, share prices should head higher along its upward trading channel as the company approaches earnings next week, as the stock is rumored to be trading lower than its intrinsic value.

Entry Point: $78.00

Trading Range: $23.09 - $80.94

Stop Loss: $74.00

Target Price: $85.80

Position closed on 2/16/2024 at price of $86.50 with a 10.90% gain in 10 days.

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