Biotech firm Alkermes expects FDA approval for its new diabetes drug this month, but that might not be enough to make the stock worth buying, “Fast Money” pro Guy Adami said Monday.
“If you look at the charts since July, it’s been in this very defined channel from $18 on the high end down to $14. It’s held $14 now three times over the last seven or eight months, give or take,” he said. “At $17½ we’re toward the upper end of the range here. I’m not saying you should short it, but if you’ve caught this move, trade this stock around these levels. I would think you look for a sell-off, maybe buy it back around the $15 level. Otherwise, here it’s a no-play.”
CEO Richard Pops said the FDA approval decision on the company’s once-weekly drug to treat Type II diabetes was expected Jan. 28.
“We’ve been through this twice before,” he said. “The third should be a charm.”
Pops said Alkermes benefited from a two-pronged approach. One part involves five products already approved by the FDA, while the other component involves “a whole new group of medicine in development.”
The diabetes drug, Bydureon, has already been approved for use in Europe. Alkermes partnered with Lilly and Amylin Pharmaceuticals on the drug.
The JPMorgan Healthcare Conference runs Jan. 9-12 in San Francisco.
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Trader disclosure: On Jan. 9, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Murphy is long M; Murphy is long CMI; Murphy is long CAT; Murphy is long TYC; Murphy is long SWK; Murphy is long KEX; Murphy is long CSX; Murphy is long BRCD; Adami owns (AGU); Adami owns (C); Adami owns (GS); Adami owns (INTC); Adami owns (MSFT); Adami owns (NUE); Adami owns (BTU)
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