Akebia Therapeutics, Inc. (NASDAQ: AKBA)
Akebia Therapeutics, Inc. (AKBA), a biopharmaceutical company today announced positive top line results from its phase 2 study of vadadustat. The study showed that the drug vadadustat was able to maintain HGB levels in chronic kidney disease (CKD) patients with anemia undergoing dialysis.
Akebia Therapeutics, Inc. CEO’s Comments
John P. Butler, President and Chief Executive Officer of Akebia, stated, “These results further confirm vadadustat as a potential best-in-class anemia treatment for CKD patients, and reinforce our confidence in this product candidate as we advance toward our Phase 3 program. Adding these results to the 12 other clinical studies we have completed, we are confident in the potential for vadadustat to treat anemia in a broad array of patients with CKD. We are pleased to have successfully completed this stage of our drug development and look forward to initiating Phase 3 studies.” Business Wire
Comments from Akebia’s Chief Medical Officer :
“This study was a clear success, demonstrating the potential of vadadustat to effectively and safely treat anemia in dialysis patients switching from injectable rESA therapy,” said Brad Maroni, M.D., Chief Medical Officer at Akebia. “We are impressed with the consistency in hemoglobin levels across the duration of the study, which highlights the ability of vadadustat to control and maintain hemoglobin levels in this patient population. Furthermore, the results indicate that daily and three times per week dosing regimens are both viable options for patients on dialysis.” Business Wire
AKBA Technical Analysis
AKBA gapped up in price today to $13.00 up from yesterday’s close of $7.81 which is a 40% increase in price based on favorable news. Taking a look at the daily chart we can see the last time the stock traded at this price level was back on March 13 when the stock traded at $13.24. To find another price level above this we have to go all the way back to Nov 19 when the stock traded at $15.24. The stock is a biopharmaceutical company and these stocks tend to have more volatility especially when news regarding their drug comes out. The stock has a relatively low float of 13.58 million shares and is trading twice the normal volume already just in pre market which makes it a good candidate for the gap and go strategy. The stock did reach pre market highs of $14.85 meaning it gave back $1.85 which is equal to 12%. This concerns me a little bit as it may be a sign that the stock is overextended at these levels. For trading purpose I would use $13.20 as my entry point looking for a possible run to $15. My stop loss would be $12.90, which is $0.10 below the gap up price fearing anything below that and the stock may start to fill in the gap up.
Akebia Therapeutics, Inc., a biopharmaceutical company, focuses on the development and commercialization of proprietary therapeutics based on hypoxia inducible factor (HIF) biology for patients with kidney disease. Its lead product candidate is AKB-6548, an oral therapy which has completed a Phase 2b study for the treatment of anemia related to chronic kidney disease in non-dialysis patients, as well as tested in a Phase 2 study for the treatment of anemia in patients undergoing dialysis. The company was founded in 2007 and is headquartered in Cambridge, Massachusetts. Yahoo Finance