Baxalta Inc. ($BXLT) Stock | Stock Soars While Markets Sell-Off


Baxalta, Inc. (NYSE: BXLT)



On Monday, the stock of Baxalta, a biopharmaceutical company focused on therapies in hematology, immunology and oncology, climbed 6% on heavy volume while the broader markets sold-off hard. The rally came after the company announced a collaboration with Symphogen to co-develop six early stage immunotherapy cancer drugs and was bolstered on renewed talks of a merger with Shire PLC.

Under the terms of the agreement, Baxalta and Symphogen will advance novel therapeutics against six checkpoint targets, with the first program to enter clinical studies in 2017. On a product-by-product basis, following successful completion of Phase 1 clinical trials, Baxalta will have exclusive option rights to complete late-stage development and worldwide commercialization. Symphogen will receive an upfront payment of $175 million (€160 million) from Baxalta in exchange for the exclusive option rights for six checkpoint therapies. Symphogen will be responsible for performing R&D through Phase 1 clinical trials at its own expense. The agreement holds a total potential value up to €1.4 billion ($1.6 billion) in option fees and milestones over the long-term, in addition to royalties on worldwide sales. Additional terms, including therapeutic targets, were not disclosed. Yahoo Finance


Baxalta Executive Comment

“This exciting partnership aligns well to Baxalta’s strategy to invest in immuno-oncology and build an innovative portfolio of immunotherapies,” said David Meek, executive vice president and president, Oncology, Baxalta. “With the expertise Symphogen offers in this category and their broad portfolio of early-stage immuno-oncology programs, this collaboration allows us to actively advance one of the most innovative areas of this field. For Baxalta, this is just the beginning of our focus in building world-class capabilities in immuno-oncology.” Business Wire


BXLT Technical Analysis

BXLT Chart

Baxalta was spun-off by Baxter International on June 15, 2015 at an opening price of $34 per share. The stock reached an all-time high of $40.90 in August and then traded in-step with the biotech index, IBB until late November when it began a slow grind higher on rumors that Shire PLC (SHPG) was preparing a second takeover bid. That deal is currently rumored to be between $46.50 and $48 per share. On Monday, BXLT gapped up $1.55 to open at $40.58. It traded most of the day below that level before end of day buying rallied the stock to close at $41.17. On Tuesday the stock opened flat and moved sideways in a tight range between $40.80 and $41.25 before once again breaking out at the end of day to close 8 cents off new all-time highs at $41.51. On the long side, BXLT does hot have any price history, so traders must focus on price action and volume. If the stock pulls back or fails, support levels sit near $41.26, $40.80, $40.55, $39.83 and the gap fill at $39.37. Going forward, Baxalta has a number of potential catalysts, including a possible deal with Shire, so price could move very fast in either direction.


Baxalta Company Profile

Baxalta Incorporated is a biopharmaceutical company. The Company develops, manufactures and markets a portfolio of treatments for hemophilia and other bleeding disorders, immune deficiencies, alpha-1 antitrypsin deficiency, burns and shock, and other chronic and acute medical conditions. The Company also focuses on disease areas, including oncology, as well as technology platforms, including gene therapy and biosimilars. The Company has a portfolio of various therapies that address unmet medical needs across various disease areas, including hemophilia, immunology and oncology. The Company’s products include ADVATE, RECOMBINATE, HEMOFIL M, Immunate, Immunine, PROTHROMPLEX TOTAL, RIXUBIS, FACTOR VII NF, BEBULIN, FEIBA, OBIZUR, GAMMAGARD LIQUID, GAMMAGARD S/D, Subcuvia, HYQVIA, FLEXBUMIN, BUMINATE, ARALAST NP, GLASSIA NP, CEPROTIN and ANTITHROMBIN III IMMUNO. Google Finance