Durata Therapeutics International: DRTX

I AM NOT A FINANCIAL ADVISER! This is my attempt to better understand the cause/effect relationship of FDA Advisory Committee (AdComm) meetings on BioTech/Pharm stocks. This is for my own education, not to serve to advise or recommend any path for others. If looking for advice look elsewhere. If trying to understand the same stuff I’m trying to understand, please draw your own conclusions… mine are nuts, and would likely put you in the poor house.

Yahoo Finance Quote
FDAAC Meeting on Mar 31, 2014.
Twitter Conversation
Meeting Materials
Full Webcast Note: At the access page, please sign in as a guest. No password is required

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Notes

  • Durata is meeting regarding dalbavancin hydrochloride for intravenous injection with the proposed indication:
    treatment of acute bacterial skin and skin structure infections
  • Data look good
  • Antibiotics that are safe and effective have an easy go, so less risk (read: reward) than many other types of bio
  • Trading in a comfortable range for me $12-16
  • The CEO and one Independent Director has purchased shares in the past year (most recent insider activity… combined about 4000 shares)
  • Released materials indicate “both trials met their primary objectives[…]also satisfied a key secondary endpoint”
  • Released materials indicate not all endpoints met, and potential Safety issues affecting Liver
Date Open High Low Close Change from Prior
3/26/2014 14.45 14.67 14.05 14.21 -0.12 (-0.837%)
3/27/2014
Materials
14.35 14.97 13.95 14.26 0.05 (0.352%)
3/28/2014 14.40 14.83 13.39 13.50 -0.76 (-5.33%)
3/31/2014
Half Day for AdComm
13.75 13.99 13.22 13.47 -0.03 (-0.222%)
4/1/2014 14.63 14.68 13.80 14.23 0.76 (5.642%)
4/2/2014 14.30 14.39 13.85 14.04 -0.19 (-1.335%)
4/3/2014 14.10 14.16 13.40 13.71 -0.33 (-2.35%)
4/4/2014 13.80 13.90 12.76 12.89 -0.82 (-5.981%)
4/7/2014 12.89 12.94 12.19 12.38 -0.51 (-3.957%)
5-day 14.63 14.68 12.19 12.38 -1.12 (-8.296%)
  • There was a 5.33% drop on the Close of the Materials Release date from the prior Close… I believe materials were released during the trading day… not certain.
  • After-hours trading peaked at 15.50, for a 15.07% bump from the Close (trading halted around noon).
  • The first Open after the Approval Recommendation was up 8.612%… within four minutes it maxed out at 14.68, or 8.09% over the previous Close.
  • The first trading day post-vote High was 0.342% higher than the Open, and occurred within the first four minutes of trading.
  • The first trading day post-vote Low was 5.673% lower than the Open.
  • The first trading day post-vote Close was 2.734% lower than the Open.
  • The five-day High was 0.342% higher than the five-day Open, and occurred on the first day.
  • The five-day Low was 16.678% lower than the five-day Open, and occurred on the fifth day.

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