Market Overview

Repeat Performance In Aveo Pharmaceuticals After Spike In Price


Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Aveo Pharmaceuticals, Inc. (NASDAQ: AVEO) shares were trading higher by $0.61 (49 percent) at $1.78 in Monday's session. The issue has retreated over $1.20 from its pre-market high ($2.97) and $0.80 from its intra-day high ($2.55).

What sparked the rally was the announcement of a licensing deal with Novartis, in which the company will receive an upfront $15 million payment as well as up to $311 million in milestone payments.

Today's trading action certainly resembles the price action in the issue on May 21. On that day, the issue spiked to $3.50 following the results of TIVO-1 study for renal cell carcinoma. However, it turned out to be a "sell the news" scenario as the issue retreated from the highs to close at $2.23.

Over the next three months, it drifted lower and made a new low for the recent slide at $1.14 and ended the day at $1.17. After flirting with the $3 level in the pre-market trading, the issue managed a higher open at $2.47, but the rally lasted only another $0.08 to $2.55. From that level, it has continued to make new lows for the session and may not even end the session over $2.

Posted-In: Novartis Premarket outlookTechnicals Intraday Update Movers Trading Ideas


Related Articles (AVEO)

View Comments and Join the Discussion!

The Balancing Acts By Brokers And Banks On Regulatory Requirements

Get To Know UberEATS