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Unusual Bullish Call Spreads Open in Micro Cap Biotech Focused on Cancer

by | Feb 24, 2023

Biomea Fusion (BMEA) late day trade buys 1800 April $10/$25 call spreads for $2.70, also sells to open the $7.50 puts for $0.20. The $344M micro-cap biotech reports next week on 2/27 after the close and Citi initiated coverage today with a Buy rating and $20 price target. The firm notes the company’s scientific rationale and emerging preclinical data for BMF-219 in targeting menin to treat type 2 diabetes is compelling. If the upcoming Phase 2 readout is positive, the data could be transformative for the stock, says the firm. As such, the firm also opened a “90-day catalyst watch” on Biomea Fusion. The Company is focused on the discovery, development and commercialization of irreversible small molecule drugs to treat patients with genetically defined cancers. The Company has built FUSION System discovery platform to advance a pipeline of irreversible small molecule product candidates. The Company’s lead product candidate, BMF-219, is designed to be an orally bioavailable, potent and selective irreversible inhibitor of menin, an important transcriptional regulator known to play a direct role in oncogenic signaling in multiple cancers. The Company is developing BMF-219 for the treatment of liquid and solid tumors that are dependent on menin, including leukemias containing the mixed lineage leukemia (MLL) fusion protein. The Company is also advancing other preclinical irreversible programs for the treatment of select cancers.