Archive for May 2014

Durata Therapeutics – dalbavancin

Hello All!  I’m Dan Heathwood and this is my first post with PDUFADATE.com.  I am excited about this venture for a couple reasons.  First, I get to address a pretty big audience.  This site still gets thousands of unique visitors every month even though there hasn’t been a post in nearly two years.  Second, I get to pick Dr. Kennedy’s brain on events that I am interested in before anyone else does, including hedge funds, private equity groups and private investors.  To me that is an incredible edge!

Now for the good stuff.  Durata Therapetics’ dalbavancin.  There’s not too much to this opinion.  I will quote Dr. Kennedy after he read the FDA briefing document, “This is a no brainer”.  I will take it a step further. The approval of this drug is a virtual guarantee.  It’s already been recommended 12-0 by the AdComm in March. Let me repeat 12-0. And there has been so much written about this drug and it’s effectiveness that I don’t know how to condense it into a short post.  It’s simple, if it’s an effective drug it will be approved and dalbavancin is effective.

I will stop riding Kennedy’s coattails and bring some value to this post as well.  So we all know dalbavancin will be approved. Now what?  How am I going to trade this?  After a run-up to  $16.65 in March in anticipation of a positive AdComm outcome, the stock pulled back a little and dipped below $12 for short stint in April.  I wish I could say this is when I jumped on the band wagon but I did start buying a little bit later so I am still pretty pleased with myself.  However, I was advising my friends that they should buy up to $15.00    At $15 I was confident I would be getting at least 10-15% return on my investment. You need to make sure you make a decent profit for the risk you taking and at $15 I didn’t think it was a risk at all.

As I write this DRTX is trading over $17.  To be blunt, at $17 this stock is oversold.  If you’re not in it now I think you missed this one.

We’re Back!

After a long hiatus, we are pleased to announce that we will begin posting opinions about FDA events again.  We also would like to announce the addition of  two new contributors to our site, Dan Heathwood and Tim Shields.  Both are private investors with previous experience working as research analysts for some well known investment firms.  Their past contributions outside of pdufadate.com  have  helped translate our opinions into sound stock trading advice.   Our first post will probably deal with Durata Therapeutics (DRTX) as we continue to receive numerous emails about dalbavancin.

There will be lots of changes to our site so keep checking back.