Aduro BioTech, Inc. (NASDAQ: ADRO)
Aduro BioTech, Inc. (ADRO), a clinical-stage immuno-oncology company announced that all clinical trials will continue unaltered as planned. This news eases concerns of prior news of one patient having an adverse event during trials.
Aduro BioTech, Inc. CEO Comments
Comments were made on Monday November 23rd regarding Financial Results:
“We believe a major strength of our company is in the versatility and broad applicability of our platforms and technologies which we have enhanced even further through our collaboration with Incyte in ovarian cancer and our acquisition of monoclonal antibody company, BioNovion, which we’ve renamed Aduro Biotech Europe,” said Stephen T. Isaacs, chairman, president and chief executive officer of Aduro. “We currently have ongoing trials in pancreatic cancer, mesothelioma, and glioblastoma and plan to initiate trials in lung and prostate cancer, ovarian cancer and cutaneously accessible tumors in collaboration with our partners at Janssen, Incyte and Novartis. In addition, we look forward to working with the Aduro Europe team of experts to advance monoclonal antibody candidates towards the clinic. Given our broad portfolio of immunotherapy candidates, we believe we are well positioned to offer patients novel therapeutic options and combinations that may be attractive alternatives to traditional therapies.” Globe Newswire
ADRO Technical Analysis
ADRO gapped up in price Wednesday to $29.49, up from the prior day’s close of $27.05, which is a 9% increase on the favorable news. Taking a look at the daily chart, we can see the last time ADRO traded above this price level was on November 23rd, when it closed at $32.23. Taking a further look back on the daily chart, we can see that ADRO has been on an upward trend dating back to September 29th when it was trading at $17.52. ADRO has been very volatile over the last few days of trading. Three days ago it traded at $28.27 then spiked up to $32.41 the next day of trading only to fall to $26.70 the day after, and then gap up to $29.49. This volatility can be attributed to positive earnings news followed by concerns of clinical trials due to an adverse event in one patient followed by a message stating that clinical trials are ongoing and on track. With the news that clinical trials are fine I would expect a move closer to the highs after the positive earnings news. ADRO has a float of 23.32 million shares and is trading 1.5 times the normal daily trading volume. ADRO did reach pre market highs of $29.98, but gave back $0.49 at the open, or equivalent to 2%. For trading purposes, my entry point would have been $29.50 looking for a run through $30.00. My stop loss would have been $29.35, fearing anything below that and the stock would start to fill in the gap up.
Aduro BioTech, Inc., a clinical-stage immuno-oncology company, focuses on the development of technology platforms designed to stimulate robust and durable immune responses against cancer. Its lead product candidate is CRS-207, which is in a Phase IIb clinical trial for the treatment of metastatic pancreatic cancer and unresectable malignant pleural mesothelioma. The companys cyclic dinucleotides product candidates are synthetic small molecule immune modulators that target and activate Stimulator of Interferon Genes receptor. Aduro BioTech, Inc. has collaboration agreement with Janssen Biotech, Inc. to develop drugs for the treatment of prostate and lung cancers. The company was formerly known as Oncologic, Inc. and changed its name to Aduro BioTech, Inc. in June 2008. Aduro BioTech, Inc. was founded in 2000 and is based in Berkeley, California. Yahoo Finance