The markets will be relatively quiet today as most western markets remain shut as an over spill of the Easter holidays. The US markets are open however, so what are Monday’s likely movers and shakers? Here’s a breakdown of some of the potential candidates.
Sarepta Therapeutics, Inc. (SRPT)
First up on the list is Sarepta Therapeutics. Sarepta Therapeutics is a biopharmaceutical company, that focusses on the discovery and development of RNA-based therapeutics for the treatment of rare and infectious diseases. The company has had a pretty rough ride with its experimental treatment for Duchenne muscular dystrophy – Eteplirsen – over the past year. Investors bought the stock up throughout the first half of 2013 on the assumption that the FDA would approve the treatment based on the results of a small, 12 patient trial. However, the FDA announced that this would not be the case, and SRPT stock dropped more than 60% on the announcement. Strong lobbying followed, and Sarepta announced today it would be submitting a New Drug Application (NDA) before the end of the year. The NDA could see Eteplirsen gain accelerated approval, and offer Sarepta access to a $600M-$1B market.
Having closed at 24.40 on Thursday, SRPT stock is trading at 43.18 pre market, a 75% gain. Expect a sharp gap up on the open, and further gains as the day matures.
AstraZeneca PLC (AZN)
The second hot stock today is also a biotech company – AstraZeneca. The company has lost value recently as a result of investor concerns over its financial stability, but rumours of a potential buyout should boost the stock today.
Reportedly, big pharma incumbent Pfizer is considering a $100B acquisition of AtraZeneca, implying a 25% upside on the company’s current market capitalisation. The stock closed at 63.49 on Thursday, and is currently trading premarket at 68.80, an 8.35% gain. As with the previous candidate, look for some initial volatility to translate to a gain as the day matures.
Bear in mind that the Easter holidays may reduce market volume, and in turn liquidity, across the major exchanges.
To contact the reporter of this story: Samuel Rae at Samuel@forexminute.com