A couple of biotechnology names I have been tracking for a while made very strong moves. Aratana Therapeutics (PETX) broke out to a new high Monday and Global Blood Therapeutics (GBT) has been spiking nicely toward the $24 level.
Both stocks continue to look favorable, and I plan to continue trading them aggressively as they develop. GBT in particular should be of interest as it moves toward its June highs at the $26 level. Biotechnology stocks can be risky but I've found it helpful to track them over time and to trade around core positions.
Another biotechnology name catching my interest is Versartis (VSAR) . The chart isn't very compelling now but it has received an Overweight rating and target of $22 from recent underwriter Piper Jaffray. The company's long-acting human growth hormone (HGH) to treat growth-hormone deficiency has a global market of about $3 billion.
Pivotal studies are not due until next year but the company raised the necessary funds with a secondary offering at $12.25 last week and should see support around that level. I am starting to build a position and will look to add as it develops further. I don't expect it to be quick mover but it is worth tracking.
Please note that due to factors including low market capitalization and/or insufficient public float, we consider VSAR and PETX to be small-cap stocks. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.