Paratek Pharmaceuticals Inc (NASDAQ:PRTK)
Paratek Pharmaceuticals, Inc. (PRTK), a clinical stage biopharmaceutical company yesterday announced positive top line results from its phase 3 study of Omadacycline. Omadacycline is used to treat skin, respiratory and other infections. The drug has already received fast track status by the FDA and is hoping to secure FDA approval for the treatment by first quarter 2018.
Paratek Pharmaceuticals, Inc. CEO’s Comments
“This successful study demonstrates the potential of omadacycline to treat community-acquired bacterial pneumonia, a significant and serious health issue,” said Michael Bigham, Chairman and Chief Executive Officer at Paratek. “This Phase 3 study in pneumonia along with our previously announced successful Phase 3 study in skin infections satisfy the regulatory filing requirements of our special protocol assessment with the FDA. We look forward to sharing these data with the FDA and EMA. Our plan is to submit our NDA in the U.S. as early as the first quarter of 2018 with an EMA submission later in 2018.” Globe Newswire
PRTK Technical Analysis
PRTK opened trading yesterday at $19.25 which was exactly the same as the previous day’s trading close. Shares closed trading yesterday at $18.60 and spiked up after market to $24.70, equivalent to a 33% increase from the closing price. Taking a look at the daily chart we can see that the last time PRTK traded above these levels we have to go back to September 24th, 2015 when it traded at $25.83.
Taking a closer look at the daily chart we can see that before the spike up PRTK had already been in an overall upward trend dating back to November 1st, 2016 when it traded at $10.40. PRTK has a float of 18.02 million shares and traded 4.23 times the normal daily trading volume on Monday.
For trading purposes, I would like to see PRTK open trading on Friday above $22.50 and if it does I would be looking to take a long position at the bell especially if it trades below the lower bollinger bands. My stop loss would be $0.30 from my entry position fearing anything more than that and the stock would start to fill in the gap up.
Company Profile
Paratek Pharmaceuticals, Inc., a clinical stage biopharmaceutical company, focuses on the development and commercialization of therapeutics based upon tetracycline chemistry in the United States.
Its lead product candidates include omadacycline, a broad-spectrum, intravenous, and oral antibiotic, which is in Phase III clinical stage for use as a monotherapy antibiotic for acute bacterial skin and skin structure infections (ABSSSI), community-acquired bacterial pneumonia (CABP), urinary tract infections, and other community-acquired bacterial infections; and Sarecycline, a tetracycline-derived compound that is in Phase III clinical trial for the treatment of acne and rosacea.
The company has special protocol assessment agreements with Food and Drug Administration for the Phase III studies for ABSSSI and CABP.
It has collaborative research and license agreement with Allergan (NYSE:AGN) plc to research, develop, and commercialize tetracycline products; license agreement with Tufts University to develop and commercialize products for the treatment or prevention of bacterial or microbial diseases, or medical conditions; and license agreement with Shin Nippon Biomedical Laboratories Ltd. to develop TO-2070 for the treatment of acute migraine.
The company also has a cooperative research and development agreement with the U.S. Army Medical Research Institute of Infectious Diseases to study omadacycline against pathogenic agents causing infectious diseases. Paratek Pharmaceuticals, Inc. was founded in 1996 and is headquartered in Boston, Massachusetts.