For the most part, biotech stocks have taken a beating this year, along with the broader market. The Nasdaq Biotechnology Index (INDEXNASDAQ: NBI) is down over 26% this year, while the S&P 500 is down roughly 18%.
Repare Therapeutics (NASDAQ: RPTX) is down over 35% year-to-date (YTD), yet is one of the rare biotechs that have seen large insider purchases. Namely, a San Francisco investment company BVF Partners LP took a huge interest in RPTX, buying over $30 million worth of stock from June 2 to June 6.
Meanwhile, on June 1, the company announced it secured a deal with Roche (SW: ROG) to cooperate on a tumor drug, potentially worth over $1.2 billion.
RPTX chart and analysis
Since the beginning of June, the shares of the company jumped over 50% on unprecedented trading volume after the announcement of the deal with ROG.
Currently, the shares are trading above the 20-day and 50-day Simple Moving Averages (SMAs), with a potential resistance line at $20.
Similarly, analysts rate the shares a strong buy, predicting that in the next 12 months, the average share price will be at $35.40, which is 156.71% higher than the current trading price of $13.79.
On May 5, RPTX announced its earnings results, missing revenue by $1.55 million to total revenue of $0.41 million. On the other hand, earnings per share (EPS) was -$0.83, representing a beat by $0.04.
In summary, RPTX has one drug candidate in the pipeline, Camonsertib, which is undergoing clinical development in phase I/II TRESR study as a monotherapy for treating solid tumors.
Since there is no approved drug in its portfolio, the only income coming in at the moment is from the Roche deal.
All in all, the company looks promising although the daily volatility of the share price indicates that the firm is likely very speculative.
Investors with high-risk appetites could keep the company on their watchlist in order to determine when the best moment would be to invest.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.