Omeros Corporation - Another Biotech Bubble In The Making?

em>Joel Elconin is the co-host of

, a daily trading idea radio show.

Omeros Corporation

shares are trading higher $8.88 at $23.43 in Tuesday's session. It is just one of many biotechnology stocks that have gone into orbit following positive data of clinical trials. For example, last week Aquinox Pharmaceuticals

soared from its August 6 close ($1.79) to $55.75 two sessions later when the company announced promising secondary endpoint results for the Phase 2 trial for a new drug targeting interstitial cystitis, a painful bladder condition. In today's session, the issue back under $20 at $18.94 Before the open, the company announced additional positive data in OMS721 Phase 2 clinical trial for Soliris, used for the treatment of aHUS (a disease affecting kidney function). The furious rally in premarket trading had the issue trading at $24 just before open up from Monday's close of $14,55, There was significant follow through off the open as the issue did not peak until it reached $30.23 around 11:30 AM.. That exceeded its former all time from January at $25.84 by over $4. From that elevated level, profits takers have come into marketplace to lock-in gains. After all,. the issue is only two days removed from its ten month low that was reached on Friday at $11.93. Again similar to Aquinox that was trading at all time lows two days before the positive announcement. Today's rally is taking place on much heavier than average volume. So far, 24.8M shares have changed hands compared to its 20 day average of 1.47M.