Alright Retards, I am on a bit of a biotech spree the past few months because… well let’s be honest, who doesn’t like volatility? If you’re looking for a stock with potential to 2-3x in the next few month’s than look no further.
The company I am talking about today is Sage therapeutics (SAGE). So what is SAGE? Well it’s a biopharmaceutical company committed to developing novel therapies with the potential to transform the lives of people with debilitating disorders of the brain.
For starters the Average Price Target according to Yahoo Finance is around 92$ a share and it is currently at 42.57$ a share at the time of this writing. Not to mention, even after some confusing Phase 3 results which I will get into later, a few analysts cut price targets from anywhere to 63$-75$ which is still significantly above the share price as of right now. What I find most staggering is SAGE trades at a P/E ratio of roughly 3.64 which is an absolute anomaly. They have $2 billion dollars in cash and next to no debt. This 2 billion dollars was mostly from biogen’s recent investment in SAGE. They invested $850 million dollars cash plus an initial $650 million equity stake in the company. They are literally trading at 0 cash/book ratio, off this alone SAGE is completely undervalued because its market cap is about $2.45 billion dollars. YES I KNOW and undervalued stock in todays market? Who would of thought it to be in biotech. SAGE’s EPS is also 11.84, and this is from their current drug that is on the market (Zulresso)
Chart Analysis –
Now SAGE has been in a LONG downtrend. It went from 96$ at it’s peak in January to $40.81 about a week ago. But it has FINALLY shown signs of turning around. Insiders just recently purchase shares at $56 and $45 respectively. The CEO himself has bought about $2 million dollars worth of shares, this always a bullish sign. It could be part of an insider regular scheduling or some quarterly filing, but nonetheless it’s never a bad sign. Anyways, the RSI is oversold on the 1 year and 5 year. The MACD on the 1 year is finally curling up and on the 6 month it’s actually broke through which is a great sign. Some volume has been coming in because of the news of insider buying, and there is a MASSIVE gap that needs to be filled from the $66 – $75 dollar range.
We will look at their main drug in their upcoming pipeline as with any biotech stock, it is the most important thing to look at. We’ve seen with MRNA how a strong pipeline can attract large institutional buys. SAGE has already partnered with Biogen to produce their “bread and butter” drug so to speak Zuranolone. Zuranolone is in phase 3 trials. Just a quick side note…. out of 100 drugs that make it to phase 2, about 12 of them make it to phase 3 and then out of those, 6 of them make it to FDA approval. Not to mention SAGE already has a drug out which produces real revenue.
About Zuranolone- Zuranolone is an investigational medication which is under development by SAGE Therapeutics for the treatment of depressive disorders and a variety of other indications. It is a synthetic, orally active, inhibitory pregnane neurosteroid, and acts as a positive allosteric modulator of the GABAA receptor. As I said earlier it is currently in phase 3. Here are some key highlights of the trial:
– At the Day 15 primary endpoint, zuranolone 50 mg showed a statistically significant and clinically meaningful reduction in depressive symptoms as measured by HAMD-17 (p=0.0141) compared to placebo
-Rapid onset of treatment effect was seen in HAMD-17 results at Days 3, 8, and 12
-Patients with a response at Day 15 to zuranolone retained on average 86% of their HAMD-17 improvement at Day 42 (4 weeks after dosing ended)
-Zuranolone was generally well-tolerated and demonstrated a safety profile consistent with previous clinical studies; trial completion rate was 90.3% in the zuranolone group
The results were solid and we will monitor the data moving forward but I am confident this will be approved by the FDA.
Link to the results here:
A link and screenshot to all of there pipeline. I won’t mention any of them besides Zuranolone above because it is currently the most important. But you can all take a look for yourself.
I believe this is worth at least 70$ and can be achieved extremely quickly
Anyway there will be a more in depth part 2 coming soon but this should get SAGE on the radar for some of you lads. As always this is not Financial Advice, invest your own money at your own will and all I’m trying to do is educate a few of you retards
Position : 1300 shares at 45$, as for options I would take a look at the 50c’s, liquidity may be shit though