PharmaMar has not been having a good time on the stock market for a long time. The last ‘whiplash to the downside’ started in late April and, since then, 25% has been left. The company has lost this week the psychological level of 80 euros and now the focus is on the support it has at the December lows, at 66.26 euros. Before, another appears, at 69.45 euros, but it is less relevant.
After falling everything that has fallen – in this last week it has lost 5.4% – it is worth wondering if it is convenient to take advantage of these cuts to enter the company. Ahead has the Annual meeting of the American Society of Clinical Oncology (ASCO), held June 4-8, and the data you are going to present on Zepzelca (lurbinectedin), Yondelis (trabectedin), and PM14 might help encourage it to some extent.
“Lately, any news, even good, seems to be received badly or with little interest”says an expert consulted by Bolsamanía when talking about biotechnology and how sensitive it is to information, both for better and for worse. In fact, it is striking that that ‘downward whiplash’ noted above began precisely after good news, as it was that it received authorization to start the Neptune phase III clinical trial, which will determine the efficacy of its compound Aplidin against Covid. This was highly anticipated news that, although it was picked up with hikes at first, has served as a starting point for what can be considered a profit taking that is lengthening in time.
“MEDIUM AND LONG TERM IS NOT A GOOD OPTION”
José María Rodríguez and César Nuez, analysts at Bolsamanía, do not recommend entering PharmaMar now. “If we have to try it, it would be at those December lows, at 66.26 euros”explains Rodríguez.
César Nuez also refers to those levels, where “We could play it for a rebound, but only speculative”. From your point of view, in the medium and long term PharmaMar is not a good option for “the normal investor”, more traditional, because its technical aspect has been complicated in recent months and it no longer presents such a dominant bullish bias.
The company has tried this week to encourage its listing by making public results of his trial for the use of Aplidin against Covid, highlighting that 74% of patients with moderate disease were discharged from hospital in the first week of treatment. However, this information has not reactivated their titles either, amid a certain feeling of exhaustion among investors.
At the beginning of this month Bolsamanía spoke with an expert about the company’s situation and the reasons for the falls in the stock market. He explained that PharmaMar is highly dependent on its compound Zepzelca and that it has not yet been approved in Europe “nor do we have news of how the process is going”. Zepzelca is only distributed in Europe for compassionate use, while the US FDA (Food and Drug Administration) approved it in June of last year under the regulation ‘accelerated approval’ (Temporary Authorization of Use). This analyst added that with PharmaMar it also happens that the market is very used to things going well and highly conditioned by the flow of good news. “When things don’t turn out more than perfect, then cuts come”, he explained.