Two small caps have some binary events coming up, and I wanted to play them.
$ADMP – Adamis Pharmaceuticals has a delayed PDUFA response from FDA on a higher dose Naloxone injection. Supposed to come out Oct 31st, but has been delayed. Open interest on the $2.50 Calls for Dec 2019 and March 2020 are over 19,000 this morning, but going out all the way to June didn’t cost much. BTO 5x $2.50 Call 6/19/20 at $0.20 at $1.00 debit. Price target for next few months would be $3-4.00 on the stock with approval, expecting total loss/lottery ticket with a CRL or other bad news. Stock is trading at about $1.00 this morning.
$AGRX – Agile Therapeutics has a contraceptive patch Twirla, with a PDUFA date of Nov. 16th. They’ve had two previous CRLs in the past years on the patch, but an advisory committee met late October and overwhelmingly supported it due to a lack of similar products. BTO 1x $2.50 Call 6/19/20 at $0.90. Price target would be $4.00, I will keep this one into next year most likely regardless of outcome. Stock is at about $2.24 at time of post.
There’s a great website I use that summarizes upcoming Biotech/Pharma dates, pipelines, etc. if anyone is interested: https://www.biopharmcatalyst.com/
Disclaimer: I’ve only used free services on this site, like their FDA calendar and weekly watch lists. Never paid money for subscription services as I’ve seen mixed reviews online.