Achaogen’s
(AKAO) stock price soared earlier this week
On September 9, 2016, Andrew Szyman (AIM student)
pitched Achaogen, Inc. (ticker: AKAO). The stock was added to the AIM Equity
Fund the following week.
The firm
is a clinical-stage biopharmaceutical company that discovers, develops, and
commercializes antibacterials to treat multi-drug resistant (MDR) gram-negative
infections in the United States. The company is principally developing
plazomicin, which is in Phase III clinical trial for the treatment of serious
bacterial infections due to MDR Enterobacteriaceae, including
carbapenem-resistant Enterobacteriaceae.
Andrew wrote, “Achaogen
has the potential to leverage plazomicin’s superiority to current medical
treatments for many years to come as the drug has demonstrated potential to
penetrate a high unmet medical need with a growing patient population, strong
physician interest, and a capability to lower direct healthcare costs. Due to
the aforementioned, it is recommended that AKAO be added to the AIM Micro-Cap
Fund at a target price of $6.07, yielding an upside of 40%.” Nice call!
His
recommendation was correct – this week the stock rose from about $5 to $15 per
share. On Monday, Needham & Company upgraded Achaogen from Hold to Buy with
a price target of $19. There has also been substantial interest in the stock as
a possible takeover candidate – and the firm also reported some Phase 3 that data
were overwhelmingly positive - pushing the company towards additional regulatory
filings and hopefully eventual approvals.
