Shkreli: I'd Short Immunomedics On The Bounce


27% profits every 20 days?

This is what Nic Chahine averages with his options 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.


Immunomedics, Inc. (NASDAQ:IMMU) shares are on a strong upswing, hitting a two-year high, on roughly 27-times their average volume.

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The Catalyst

The biopharmaceutical company specializing in antibody-based therapeutics announced that it has inked an exclusive global licensing agreement with Seattle Genetics, Inc. (NASDAQ:SGEN) for its Sacituzumab Govitecan, code named IMMU-32. The treatment candidate has the potential for being the first ever approved therapy specifically for advanced metastatic triple-negative breast cancer. Immunomedics stands to gain potential payments of up to about $2 billion, plus royalties.

Separately, the company announced postponement of its 2016 Annual Meeting of Stockholders previously scheduled for February 16. The meeting has been postponed to March 3 at 10:00 a.m. ET.

Payment Breakup


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  • Upfront cash payment: $250 million.
  • Among other milestone payments, an additional $50 million or negotiated economic splits relating to rights outside the United States, Canada and the EU.
  • Milestone payments of up to $1.7 billion.
  • Seattle Genetics to make up to $57 million equity investment for up to 9.9 percent stake in Immunomedics through purchase of 3 million common stock representing a 2.8 percent stake and a three-year warrant.

Other Terms

The agreement provides for Seattle Genetics developing manufacturing and commercializing IMMU-132 in multiple locations, while Immunomedics would retain rights to co-promote in the United States.

Shkreli Recommends Shorting

In a Facebook Inc (NASDAQ:FB) post, Martin Shkreli said he would short Immunomedics on the bounce. "I can't believe they got $250 million for this irinotecan prodrug. The world has moved on from old chemo mechanisms to targeted/IO. That'll be the last $250 they get," he said in the post.

At Time Of Writing

  • Immunomedics was skyrocketing 20.42 percent to $5.17.
  • Seattle Genetics was slipping 3.26 percent to $60.76.

27% profits every 20 days?

This is what Nic Chahine averages with his options 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.


Posted In: Analyst ColorBiotechNewsShort IdeasHealth CareAnalyst RatingsMoversMediaTrading IdeasGeneralMartin Shkreli