The financial markets are crazy these days – particularly in biotech where we continue to see signs of insider trading over and over.
This month has been about crazy stock performance on Acceleron($xlrn) and Aurinia ($auph).
Acceleron stock has been skyrocketing this month
It was around $120 and then the stock went to $180. After it hovered slightly above $180, the news “leaks” officially on WSJ that Acceleron is in negotation for sale to a large cap pharma with Merck being the leading bidder.
Strategic interest makes a lot of sense – sotatercept is going to be THE backbone therapy for PAH and when you are entering a new therapeutic space with enormous incumbents like JNJ and UTHR, you go in with bazooka – a product that simply will have to be used.
Aurinia is another biotech that some people seem to be trading on insider information.
There is no news, but stock went up from low teens to low $20s in a matter of a few weeks!
Lupus is an area of huge unmet medical need, but this much upside in a few month does not happen unless somebody knows something with which they should never be trading.
I always learned insider trading is the fastest way to end your career – and I truly believe it.
This game (buyside investint) is all about SHOWING UP EVERYDAY so that YOU ARE AT YOUR SEAT during your big year.
I don’t even dabble in stocks of companies that are rumored for sale because I just don’t want to be associated with tail risk.
They say “TRADE AT YOUR OWN RISK” – but some risk is never worth trading.
*not investment advice
Very nice