PTI Follow-Up: Up 35% in 4 Hours!
The announcement of two new board members could be why Proteostasis Therapeutics shot up 35% today.
In the Trade of the Day for January 8, I told you Proteostasis Therapeutics (NASDAQ: PTI) was something to keep your eye on: “The shares should make a run-up in the next month or two in anticipation of the Cystic Fibrosis (CF) study results. A positive result could increase the stock price to double or even triple what it is now.”
Today, Proteostasis shares shot up 35% on heavy volume – and the CF study results haven’t even been shared yet.
Proteostasis Therapeutics announced the addition of two very experienced board members, one of whom, Kim Cobleigh Drapkin, is the chief commercial officer at billion-dollar biotech Alnylam Pharmaceuticals (NASDAQ: ALNY). The company named also named Emmanuel Dulac, the CFO of Jounce Therapeutics, to the board.
But the news that really goosed the price was fund giant BlackRock taking a 5.9% stake in the company.
When you see big names buy into shares of a company and the addition of “known” members to that company’s board, it’s usually a pretty good sign that company is going to have a bright future.
Board members and large institutional investors are often privy to nonpublic information – perhaps they know how the CF study is going right now.
The action today is a good indicator that we may have some even better moves in the weeks ahead.