Five Prime Therapeutics, Inc. (NASDAQ: FPRX)
Five Prime Therapeutics’ stock surged 65.2% today to all time highs of $28.48 on news of a collaboration and licensing agreement with Bristol-Meyers Squibb (BMX). The deal involves an upfront payment of $350 million and could generate $1.74 billion, plus significant sales royalties for Five Prime.
CEO Comments
“We believe this transformational collaboration with Bristol-Myers Squibb for our CSF1R antibody program represents the best of both worlds in terms of maximizing the potential of FPA008,” said Lewis T. “Rusty” Williams, M.D., Ph.D., president and chief executive officer of Five Prime Therapeutics. “Bristol-Myers Squibb has undisputed leadership in the immuno-oncology landscape, deep clinical development and regulatory expertise, and an established commercial infrastructure to deliver important new therapies to patients. Bristol-Myers Squibb also has a rich pipeline of clinical candidates and approved products, a number of which may have therapeutic synergy when coupled with FPA008, given the potential of CSF1R inhibition to suppress the activity and survival of tumor associated macrophages. At the same time, Five Prime will continue to conduct trials in pigmented villonodular synovitis (PVNS) and immuno-oncology with FPA008, which is a product of our proprietary protein platform and our discovery of IL-34, one of the two ligands for CSF1R that FPA008 blocks.” Business Wire
FPRX Technical Analysis
Today, FPRX stock price hit all time highs, had its single largest dollar and percentage gain, and did so on record-breaking volume. In fact volume today was 4.6 times the stocks average weekly volume.
FPRX hit an early pre-market high of $30.10 and spent the balance of pre-market trading between $26 and $29. The stock opened to immediate profit taking before buyers stepped in and established support near $25. From there it moved back up to the opening price of $27.60 on increasing volume. Dips were bought at $26 and the price otherwise remained above VWAP for the balance of the day before closing at $27.93. On a longer-term timeframe, the stock is trading above all moving averages and near all time highs.
On the long side there are sellers at $28, $28.25 and HOD of $28.48. A volume move thru HOD has room to run. On the short side, a break of VWAP would get my attention with additional support levels at $26.60 and $26. A break below today’s support near $25 and the sellers gain control.
I’ll be watching FPRX price action relative to the Biotech sector (IBB). I will also be watching for reaction to analysts’ opinions, which will likely come in over the next several days. Keep in mind that this stock has a low float of 20.64 million shares and 15.6% of that is short. A positive catalyst could get this flying.
About Five Prime Therapeutics, Inc.
Five Prime Therapeutics, Inc. discovers and develops innovative therapeutics to improve the lives of patients with serious diseases. Five Prime’s comprehensive discovery platform, which encompasses virtually every medically relevant extracellular protein, positions it to explore pathways in cancer, inflammation and their intersection in immuno-oncology, an area of oncology with significant therapeutic potential and a growing focus of the company’s R&D activities. Five Prime has entered into strategic collaborations with leading global pharmaceutical companies and has promising product candidates in clinical and late preclinical development. Yahoo Finance
