Celladon Corporation (NASDAQ: CLDN)
Celladon Corporation (CLDN), a clinical stage biopharmaceutical company yesterday announced a merger agreement with Eiger BioPharmaceuticals. Under terms of the agreement the new company will be under Eiger’s current leadership and directors and executive officers of CLDN will resign their positions. CLDN CEO Paul Cleveland will be stepping down and leaving the company effective November 19th.
Eiger BioPharmaceuticals CEO’s Comments
“The proposed merger and concurrent financing are expected to be sufficient to allow the combined company to obtain Phase 2 clinical trial results from at least two of the four planned development programs by late 2016,” Eiger CEO David Cory said in a statement. “We have a dedicated, experienced management team in place and executing on these four novel programs, all of which address potentially significant markets with unmet medical needs.” The Street
CLDN Technical Analysis
CLDN gapped up in price yesterday to $1.50, up from the prior day’s close of $1.11, which is a 35% increase on the favorable news. Taking a look at the daily chart, we can see the last time CLDN traded above this price level was on June 25th, when it closed at $2.20. Taking a further look back on the daily chart, CLDN has been on a steep decline dating back to March 20th when it was trading at its 52 week high price of $28.25. CLDN tanked all the way down to $2.68 on April 27th, a 90% drop in price. There was another big drop in price on June 25th when it was trading at $2.68 and dropped to $1.24 on the next day of trading a 54% drop in price. Since then, CLDN has remained below $1.25. CLDN has a low float of 13.93 million shares and was trading over 50 times the normal trading volume. CLDN did reach pre market highs of $3.00, but gave back $1.50 at the open, or equivalent to 50%. For trading purposes, my entry point would have been $1.60 looking for a run to $2. My stop loss would have been $1.50, fearing anything below that and the stock would start to fill in the gap up.
About Celladon Corporation
Celladon Corporation, a clinical-stage biotechnology company, focuses on developing cardiovascular gene therapy and calcium dysregulation. The companys lead product candidate includes MYDICAR that uses genetic enzyme replacement therapy to correct the Sarco/endoplasmic reticulum Ca 2+ -ATPase 2a enzyme deficiency in heart failure patients that result in inadequate pumping of the heart. Its MYDICAR product is used to treat patients with systolic heart failure, diastolic heart failure, and advanced heart failure, as well as to treat pulmonary arterial hypertension and arteriovenous fistula maturation failure. The company is also developing membrane-bound form of Stem Cell Factor for the treatment of cardiac ischemic damage; and compounds for the treatment of diabetes and neurodegenerative diseases. Celladon Corporation was founded in 2000 and is headquartered in San Diego, California. Yahoo Finance