CASI Pharmaceuticals, Inc. (NASDAQ: CASI)
CASI Pharmaceuticals is having a rough day in the market today, however, as you read in the title, the bulls on the stock really don’t mind. In fact, this was expected. Today, we’ll talk about what we saw from the stock yesterday, how it led to what we’re seeing today, and what we can expect to see moving forward.
What We Saw From CASI Yesterday
Yesterday, CASI had an incredible day in the market after receiving Orphan Drug Designation for their leading oncology candidate. The candidate that received the ODD is called ENMD-2076 and is designed for the treatment of hepatocellular carcinoma, including fibrolamellar carconoma, a rare type of HCC. The Orphan Drug Designation gives CASI 10 year market exclusivity in Europe once ENMD-2076 is approved.
As investors, we’ve come to expect that anytime overwhelmingly positive news becomes available surrounding a publicly traded biotechnology company, we can expect to see gains. That’s exactly what happened yesterday. In fact, before noon, CASI had already climbed to $1.48 per share after a massive gain of 44.72%.
What We’re Seeing In The Market Today
As mentioned above, today isn’t a great day in the market for CASI or its investors. Unfortunately, the stock is declining. Currently (10:28), CASI is trading at $1.41 per share after a loss of 1.40%. However, as I also mentioned above, the bulls really don’t mind the declines. In fact, this was expected. In these situations, it’s important to keep in mind how the market moves. After large increases in value, we tend to see declines in value. That’s because price movement in the market happens through a series of overreactions. So in morning trading today, CASI corrected from yesterday’s high, bringing the stock down to a more sustainable rate before growth could continue.
What We Can Expect From CASI Pharmaceuticals Moving Forward
Moving forward, I have an overwhelmingly bullish opinion with regard to what we can expect from CASI Pharmaceuticals. At this point, it seems as though the company is making all the right moves at all the right times. Orphan Drug Designation is huge, and the company has been granted the designation in two regions; One is in Europe, which is very recent, and the other is in the United States, which happened in 2014. So, when ENMD-2076 is approved, not only will the company enjoy 10 year market exclusivity in Europe, but they will also enjoy 7 year market exclusivity in the United States! This will be huge. All in all, there is no reason that I could find that justifies expecting any long lasting declines. With that said, keep your eyes on CASI because it’s likely heading upward!
What Do You Think?
Where do you think CASI is headed and why? Let us know in the comments below!