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Hawk’s Nest

Unusual Call Buying in Two Biotechs with Q3 Catalysts

by | Aug 4, 2021

NGM Bio (NGM) a $1.6B Biotech jumping here, no confirmed earnings date yet but supposed to be this week, seeing 2450 October $22.50 calls bought $4.10 to open, shares looking to work out of multi-week consolidation. NGM recently completed enrollment in Phase 2 CATALINA study which is evaluating the safety and efficacy of intravitreal, or IVT, injections of NGM621 in patients with geographic atrophy secondary to age-related macular degeneration. The action comes ahead of REGN results tomorrow, a key player in eye diseases. NGM sold off in May on disappointing NASH data and the focus shifts now to geographic atrophy and cancer. Apellis (APLS) Phase 3 data for pegcetacolpan in Q3 is a potential catalyst for NGM621.

Travere Therapeutic (TVTX) unusual bull spread opens 5000 September $15/$22.5 call spreads for $2, a name that sold off in May and has been basing a few weeks. The $860M Biotech recently completed enrollment in its Phase 3 PROTECT study, evaluating the safety and efficacy of sparsentan for the treatment of IgA nephropathy, a rare kidney disorder that often progresses to end-stage kidney disease. Data is due in this month. BMO sees 75% probability of success.