TRACON Pharmaceuticals, Inc. (NASDAQ: TCON)
TRACON Pharmaceuticals, Inc. (TCON), a clinical stage biopharmaceutical company, announced on Thursday two oral presentations regarding their drug TRC 105. The studies showed complete response from a choriocarcinoma patient treated with TRC 105 in the compassionate use Phase 2 clinical trial conducted.
TRACON Pharmaceuticals, Inc. CEO’s Comments
“We have now seen complete responses in two orphan tumor types that overexpress endoglin, choriocarcinoma and angiosarcoma. There are currently limited treatment options for patients with either of these cancers who progress on first-line chemotherapy,” said Charles P. Theuer, M.D., Ph.D., President and CEO of TRACON. “We intend to treat additional patients with GTN in a Phase 2 multicenter trial that we expect to initiate in the fourth quarter of 2015, and to apply for orphan drug status for TRC105 in GTN, as well as soft tissue sarcoma, by the end of the year.” Globe Newswire
TCON Technical Analysis
TCON gapped up in price Friday to $17.34 up from the prior day’s close of $11.73, which is a 48% increase in price based on favorable news. Taking a look at the daily chart, we can see the last time the stock traded above this price level was back on March 9 when the stock closed at $17.38. A week prior to that on March 3, the stock was trading at its 52 week high of $21. The stock has shown the ability to make big moves in a short period of time in the past. On June 18, the stock traded at $11.38 and only two trading days later the stock traded at $14.50, equivalent to a 27% increase in price. On July 14 the stock was trading at $10.40 and the next day reached highs of $13.69 equivalent to a 32% increase in price. The stock does have a low float of 7.38 million shares and is trading on heavy volume over 16 times the normal daily trading volume. Both of these factors make the stock a prime candidate for the gap and go strategy. The stock did reach pre market highs of $24.95, meaning that it gave back $7.61 at the open equivalent to 30 % drop in price. This concerns me a bit, showing the stock may be overextended a little bit. For trading purposes my entry point would be $17.50 looking for a run through the whole number of $18. My stop loss would be $17.25 fearing anything below that and the stock will start to fill in the gap up.
TRACON Pharmaceuticals, Inc., a clinical stage biopharmaceutical company, focuses on the development and commercialization of novel targeted therapeutics for cancer, age-related macular degeneration, and fibrotic diseases. Its lead product candidate is TRC105, which is in Phase II clinical trials for oncology indications, including soft tissue sarcoma, renal cell carcinoma, glioblastoma, and hepatocellular carcinoma. The company is also planning for clinical trials of TRC105, including a Phase II clinical trial in patients with breast cancer and hepatocellular carcinoma, a Phase I clinical trial in patients with colorectal cancer, and a Phase I clinical trial in patients with lung cancer, as well as conducting preclinical studies of TRC105 in AMD. In addition, it has completed various Phase I and Phase II clinical trials of TRC105 for the indications, such as solid tumors, glioblastoma, hepatocellular carcinoma, and renal cell carcinoma, as well as breast, prostate, bladder, and ovarian cancers. Further, the company product candidates comprise TRC205, an anti-endoglin antibody that is in preclinical stage for the treatment of fibrotic diseases; and TRC102, a small molecule, which is in clinical development for the treatment of lung cancer and glioblastoma. TRACON Pharmaceuticals, Inc. has collaboration agreements with National Cancer Institute and Santen. The company was formerly known as Lexington Pharmaceuticals, Inc. and changed its name to TRACON Pharmaceuticals, Inc. in March 2005. TRACON Pharmaceuticals, Inc. was founded in 2004 and is headquartered in San Diego, California. Yahoo Finance