27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
Neon Therapeutics Inc (NASDAQ:NTGN) develops vaccine based on neoantigens — markers unique to each individual tumor — to improve tumor response in checkpoint inhibitors such as Merck & Co., Inc. (NYSE:MRK)'s Keytruda and Bristol-Myers Squibb Co (NYSE:BMY)'s Opdivo, according to Morgan Stanley.
The Analyst
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
Morgan Stanley analyst Matthew Harrison initiated coverage of Neon Therapeutics with an Overweight rating and $23 price target.
The Thesis
Neoantigens are a relevant target that could improve the efficacy of current checkpoint inhibitors, and Neon is well-positioned to capitalize on this therapeutic option, Harrison said in a Monday note. (See the analyst's track record here.)
"We believe this is a unique way of driving a patient-specific immune response with initial data suggestive of a complementary approach to other immune therapies," the analyst said.
Neon has two ongoing clinical trials, Harrison said:
- One in combination with Opdivo in refractory melanoma, lung and bladder cancer.
- A second in combination with Keytruda and chemotherapy in lung cancer.
Want Private Access to Benzinga Analyst?
Check out the latest strategies our team of experts are using every week so that you can always adapt to the market like the pros!—Get FULL Access to This Week's Webinar Here.
Initial data from the Opdivo study has demonstrated an immune response, the analyst said. Despite the very early nature of the data, Harrison said the study demonstrated a vaccine-specific immune response that's suggestive of a benefit.
Since durability of response is a key factor, the analyst said 52-week data due in the first half of 2019 is important.
In the near-term, Harrison said he expects Neon shares to trade in-line with the market as the company executes on the initial trials.
If the long-term follow up for Opdivo and Keytruda supports a significant increase in durability relative to PD-1 monotherapy and the vaccine's tumor-shrinking ability is established, Morgan Stanley expects Neon shares to signficantly outperform.
Price Action
Neon Therapeutics shares have lost about 28 percent since they began trading June 27.
The stock was up 3.97 percent at $11.25 at the time of publication Monday afternoon.
Related Links:
The Week Ahead In Biotech: Conferences, PDUFA Dates, Clinical Trial Results, Earnings And IPOs
Canaccord Previews Biotech Catalysts In The Second Half: Neurological Drugs In Focus
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.