Applied DNA Sciences [APDN] - Last Close: $2.80 ð
A new clinical update is skyrocketing shares of Applied DNA.
The genetic testing firm announced Tuesday that it's validating a newly-developed PCR-based test that can detect the monkeypox virus.
If the test is validated, the company will submit a validation package to the NY State Dept. of Health for approval.
If approved, Applied DNA's test will become New York's go-to choice monkeypox testing programs.
APDN surged to a 311.2% gain in yesterday's session following the announcement, and it's up again in today's premarket.
APDN is trading actively with a 115.4% gain ahead of today's opening bell.
Our Take: These are some big numbers, but you're taking on significant downside risk if you jump in this trade now. APDN is up more than 600% since yesterday, and that move could quickly reverse once short-term traders start taking profits off the table.
Rigel Pharmaceuticals [RIGL] - Last Close: $1.30
A new licensing deal is giving Rigel Pharma a premarket boost.
The biotech firm announced a new licensing deal with Forma Therapeutics for Olutasidenib, a novel mutant IDH1 inhibitor to treat of relapsed or refractory Acute Myeloid Leukemia.
According to the Tuesday evening announcement, recent Phase 2 data demonstrates the drug's potential, and the US FDA has accepted Forma's NDA for olutasidenib with a target action date in Feb. 2023.
Under the terms of the deal, Forma will receive an upfront payment of $2.0 million, and it's eligible to receive up to $17.5 million in milestone payments with another $215.5 million in commercial milestones on the table.
If approved, olutasidenib would be Rigel's second commercial product in hematology-oncology and highly synergistic with Rigel's existing commercial and medical affairs infrastructure
RIGL is up 16.9% on active volume following the announcement.
Our Take: The market likes this move, and it seems like investors expect olutasidenib to get approved. If the FDA approves it, it's very likely we'll see another large rally in shares of RIGL. However, it will be months before a full approval comes through, so play this one patiently.
