Calithera Biosciences, Inc. | $CALA Stock | Shares Dip Down on Announcement of Underwritten Public Offering of Common Stock

Calithera Biosciences

Calithera Biosciences, Inc. (NASDAQ: CALA)



Calithera Biosciences, Inc. (CALA), a clinical-stage biopharmaceutical company yesterday announced they will be offering up 4,500,000 shares of common stock in an underwritten public offering. All of the common stock is being offered by Calithera.


Calithera Biosciences, Inc.  CEO’s Comments

Comments from March 16th on announcement of Fourth Quarter 2016 financial results:

“2016 was a transformative year for Calithera as our lead product candidate CB-839 entered into multiple novel combination trials and progressed towards Phase II, and CB-1158 advanced into clinical development leading to a partnership with Incyte Pharmaceuticals for a strategic development and commercialization collaboration in January 2017,” said Susan Molineaux, PhD, President and Chief Executive Officer of Calithera.  

“Looking forward to 2017, we expect to highlight new clinical data from each of our clinical programs at scientific meetings, with clinical data expected from CB-1158 in the first half of the year, and multiple clinical updates on CB-839 combination trials in the second half of 2017.  This includes the first clinical data presentation of CB-839 dosed in combination with Bristol Myers Squibb’s Opdivo.”  Globe Newswire


CALA Technical Analysis

Calithera Biosciences

CALA opened trading yesterday at $12.45 which was up from the previous day’s trading close of $12.40. Shares closed trading yesterday at $12.35 and spiked down after market to $11.50, equivalent to a 7% decrease from the closing price. Taking a look at the daily chart we can see that the last time CALA traded below these levels we have to go all the way back to February 28th, when it traded at $9.00.

Taking a closer look at the daily chart we can see that before the spike down CALA had been in an overall upward trend dating back to November 28th, 2016 when it traded at $3.15. CALA has a float of 7.15 million shares and traded 1.02 times the normal daily trading volume on Monday. Even though it is higher priced than most penny stocks I trade, it still looks like it could provide some opportunity.

For trading purposes, I would like to see CALA open trading on Tuesday below $11.75 and if it does I would be looking to take a short position at the bell. My stop loss would be $0.20 from my entry position fearing anything more than that and the stock would start to fill in the gap down.


Company Profile

Calithera Biosciences, Inc., a clinical-stage biopharmaceutical company, focuses on discovering and developing small molecule drugs directed against tumor metabolism and tumor immunology targets for the treatment of cancer in the United States. Its lead product candidate includes CB-839, an inhibitor of glutaminase, which is in three Phase I clinical trials for the treatment of patients with solid tumors, leukemias, lymphomas, and multiple myeloma.

The company has a license agreement with Mars, Inc. to develop and commercialize Symbioscience’s portfolio of arginase inhibitors for use in human healthcare; and license and research agreement with High Point Pharmaceuticals, LLC and TransTech Pharma LLC to develop and commercialize hexokinase II inhibitors.

In addition, it has clinical trial collaboration with Bristol-Myers Squibb Company to evaluate Opdivo (nivolumab) in combination with CB-839 in clear cell renal cell carcinoma. The company has a collaboration and license agreement with Incyte Corporation for the research, development, and commercialization of CB-1158, a small molecule arginase inhibitor for the treatment of hematology and oncology. Calithera Biosciences, Inc. was founded in 2010 and is headquartered in South San Francisco, California.  Yahoo Finance