I am a day late updating on progress so my apologies for that. Yesterday saw another day of strong gains. Up >4% on Friday hitting another new high (3rd this week). My big movers were in HZNP and AFFY.
I decided to close half of my position in AFFY at the end of the day. I got out at a $13.41 with a 22% gain on my entry price of $11.01. I think this could still move on Monday but I wanted to make sure to lock in some gains. I am expecting an approval on Tuesday so if there is a strong move on Monday I plan on selling another half of the position and selling the remainder after the news (assuming a pop). My recent research suggests that it might be worth shorting whatever positive move follows an approval – however, in this case there is such bullish sentiment around the sales potential for the new drug that I am not convinced that is the right move.
I have also added XNPT to the portfolio. I have bought my usual sized holding (25% of the portfolio value) at an average price of $4.50. I may add some more detailed notes but the short of it is that Horizant has an upcoming PDUFA for post herpetic neuralgia (PHN) in early June. Horizant is already approved for restless leg syndrome but has not been enjoying impressive sales. The company is going through some difficulties with its marketing partner (GSK) and a resolution would provide a further catalyst. It has some interesting pipeline potential so may be a possible long-term hold – but I am just looking at it as a catalyst play in this portfolio. If it can break through the $4.75 area there is certainly room for a move to the upside.