Biotech Values

[RockRat]

Paratek (PRTK) got a solidly positive AdCom outcome. Heavy majorities in favor of approval for ABSSSI and CABP indications. It's heavily shorted and trading not much above cash (which is substantial). As such, it should pop a bit, but since the drug is only an incremental improvement against most strains (seems at its best in MRSA), it probably won't be a big pop. Management now has to prove its theory that it can get patients out of the hospital faster. If it can convince insurers of that, they could ultimately win pretty big. But that's a big "if" and and won't resolve soon.

I'm guessing it could make to around $14 near term with some analyst support. At that point I would expect some retracements and volatility as the intermediate and long term theses play out, but I be surprised if got back to single digits again. My humble opinion. I don't think this will be the next AKAO for shorts, but they might make a couple of bucks fading a spike.

Regards, RockRat