MediciNova, Inc. (NASDAQ: MNOV)
MediciNova, Inc. (MNOV), a biopharmaceutical company today announced it has received fast track designation from the U.S Food and Drug Administration (FDA) for their drug MN-001 (tipelukast). MN-001 is used for the treatment of patients who have idiopathic pulmonary fibrosis.
MediciNova, Inc. CEO’s Comments
Yuichi Iwaki, MD, PhD, President and Chief Executive Officer of MediciNova, Inc., commented,
“We are very pleased that MN-001 has received Fast Track Designation for IPF and believe this validates its potential to address unmet medical needs in this life-threatening disease. We look forward to providing further updates as our development program progresses.” Globe Newswire
MNOV Technical Analysis
MNOV gapped up in price yesterday to $3.50 up from the prior day’s close of $3.08 which is a 12% 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 August 18 when it traded at $3.52. Since that date the stock has been on a steep decline and reached lows of $2.81 on August 26. So with today’s gap up in price we have essentially filled the gap down that the stock took back in August. This concerns me a bit as the stock may use the $3.50 as a resistance level. The stock does have a low float of 22.21 million shares and is trading over 4 times the normal daily trading volume. Both are good signs that the stock may still continue to move up and make it a good candidate for the gap and go strategy. The pre market highs for the stock were $3.85 so it did give back $0.35 at the open equivalent to 9%. For trading purposes I would like to see the stock hold the $3.50 level and make it a support level so my entry point would be $3.60 with a possible add on at pre market high price of $3.85 looking for a run to $4. My stop loss would be $3.45 which is $0.05 below the gap up price fearing anything below that and the stock will start to fill in the gap up.
MediciNova, Inc., a biopharmaceutical company, focuses on acquiring and developing novel and small molecule therapeutics for the treatment of serious diseases with unmet medical needs for the United States market. Its product candidates include MN-166 (Ibudilast), an anti-inflammatory and neuroprotective agent, which has completed Phase II clinical trials for the treatment of neurological disorders; MN-221 (Bedoradrine), a ß2-adrenergic receptor agonist that has completed Phase IIb clinical trails for the treatment of acute exacerbations of asthma; MN-001 (Tipelukast), an orally bioavailable small molecule compound, which has completed a pre-clinical study for the treatment of nonalcoholic steatohepatitis; and MN-029 (Denibulin), a novel tubulin binding agent under development for the treatment of solid tumors. MediciNova, Inc. was founded in 2000 and is based in La Jolla, California. Yahoo Finance