The FDA is expected to decide on Friday whether Genentech's blockbuster cancer drug Avastin can be approved for broader use. While the odds are low, Guy Adami is betting with DNA.
The decision on whether Avastin can be treated for late-stage breast cancer to improve quality of life for patients (not lifespan) could spell huge upside for Genentech, according to Guy.
He puts the odds at 30-35% that the drug gets FDA approval but if it does he sees up to $7 immediate upside for the stock.
And if the FDA doesn’t approve the drug for new uses or postpones the decision, Guy predicts a downside of only $2-3 for the stock given its current level. It’s a tough call, but he would roll the dice and buy DNA Friday.
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Trader disclosure: On Feb.21, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Macke Owns (INTC), (YHOO); Seymour Owns (AAPL), (CSCO), (F), (MSFT), (S), (TSO), (SBUX), Seygem Asset Management Owns (CCJ), (TIE), (GAF) Seygem Asset Management Is Short (EEM); Finerman’s Firm is Short (IYR), (IJR), (SPY), (MDY), (IWM), (LEH) and Owns (LEH) Puts; Finerman’s Firm Owns (VLO), (TSO), (MSFT), (KSS), (JCP), (AAPL), (TSO), (VLO), (YHOO), (WMT), (MO), (AEO); Finerman Owns (GS); Dennis Gartman Owns (CIM), (COIN), (PRB), (SID), (PAL), (UNG), Gold, (UUP), (SWC), (HOV), (GWR), (GMO); Gartman is Short (SDS), (COH), (HOG), (RTH), (MMM), (GM), (DCR), (AAPL), (DRYS), CIBC; Gartman Index Owns Gold, the EUR, the Canadian Dollar, Sugar