Forty-Seven (NASDAQ:FTSV) has been on fire, over the past two months, as heavy trading volumes and positive price action signal strong institutional buying. The stock has rallied up by more than 200% to record highs in the market. The phenomenon run has coincided with investors reacting to positive clinical trial data involving the company’s lead cancer immunotherapy command Magrolimab. It is one of the hottest “Stocks to Watch” on AlphaBetaStock.com.
Positive Cancer Trial Results
Immediate data shows that the lead candidate drug has the promise to be a treatment for myelodysplastic syndrome. The condition is synonymous with poorly formed blood cells that also don’t work properly. Forty Seven appears to have found a way of treating this type of cancer; thus, the love it continues to receive on Wall Street.
With the help of Magrolimab, which is under trial, the clinical-stage company has unlocked a new way of activating first responders in patients’ immune system to attack and destroy cancer cells. Likewise, the lead compound has proved to be effective in clinical trials in recognizing and defeating cancer. Forty-Seven has already embarked on Phase 1 and Phase 2 clinical trials of Magrolimab in the treatment of myeloid leukemia colorectal cancer and ovarian cancer as well.
Regulatory Boost
The U.S Food and Drug Administration granting the company fast track designation of the lead compound all but affirms its potential in the treatment of cancer. The designation is a major boost for Forty-Seven as it opens the door for expedited development with a view of getting it to market quickly.
Forty-Seven has also secured orphan drug designation for the treatment of AML by the European Medicines Agency. The designation is a major boost as it affirms Magrolimab credentials as a potential treatment for rare diseases and disorders that have no cure.
Likewise, the company is working on other treatments as part of its expanded and diversified pipeline. For starters, it is working on an antibody for treating solid tumors in addition to an antibody that leverages human stem-cell transplantation to treat melanoma and leukemia.
In addition, the company continues to enjoy a first-mover advantage against its competition, given its unique approach of targeting cancer cells. The company also boasts of a robust patent portfolio made up of 187 patents worldwide.
The clinical-stage company remains well-positioned to advance the development of Magrolimab and its other pipeline. Late last year, the company closed a public offering, whereby it issued 5.5 million shares of common stock. Gross proceeds from the gearing were about $195.6 million sufficient to finance the development of Magrolimab, among other candidate drugs. The company ended 2019 with $329.1 million in cash and cash equivalent.
Forty Seven Outlook
Investors pushing the stock up the chart thus does not come as a surprise given the developments and milestones achieved on the development of the company’s pipeline of drugs. The high turnover of traded shares in the market for starters affirms strong institutional conviction that the Magrolimab has the potential to be a keystream of profits in the years to come.
The lack of competitors in the market means Forty Seven will be able to enjoy patent protection for long, should Magrolimab gain regulatory approval as a treatment for AML, among other cancers. The milestones achieved so far have also made the company an attractive acquisition target for large players looking to strengthen their oncology departments.
While Forty Seven is an attractive prospect given the milestones achieved so far with Magrolimab, it also poses a significant amount of risks. For starters, there are no assurances that Magrolimab will succeed in upcoming clinical trials to secure regulatory approval. However, positive results in upcoming trials would be a major catalyst that would propel the stock even higher in the market.
Forty Seven Stock Price Recommendations
Jan-13-20 Initiated SunTrust Buy $55
Nov-20-19 Resumed Guggenheim Buy
Sep-12-19 Initiated Mizuho Buy
May-29-19 Initiated ROTH Capital Buy $28
Apr-12-19 Initiated Guggenheim Buy
Dec-21-18 Initiated BTIG Research Buy
Nov-30-18 Initiated H.C. Wainwright Buy $21
1 Day Moving Averages – Strong Buy
Name Value Action
Exponential Moving Average (5) 39.61 Buy
Simple Moving Average (5) 39.13 Buy
Exponential Moving Average (10) 39.78 Sell
Simple Moving Average (10) 41.08 Sell
Exponential Moving Average (20) 38.88 Buy
Simple Moving Average (20) 39.04 Buy
Exponential Moving Average (30) 36.88 Buy
Simple Moving Average (30) 39.65 Buy
Exponential Moving Average (50) 32.29 Buy
Simple Moving Average (50) 31.49 Buy
Exponential Moving Average (100) 24.66 Buy
Simple Moving Average (100) 19.27 Buy
Exponential Moving Average (200) 19.15 Buy
Simple Moving Average (200) 15.34 Buy
Ichimoku Cloud Base Line (9, 26, 52, 26) 40.90 Neutral
Volume Weighted Moving Average (20) 39.83 Sell
Hull Moving Average (9) 38.05 Buy
