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Idera Pharmaceuticals (IDRA) Climbs on Positive Top-line Data from IMO-8400 Phase 2 Trial

By  +Follow March 27, 2014 11:11AM
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It’s been a wild week for Idera Pharmaceuticals (IDRA). What started as a modest decline on March 19 after the stock bumped against its rising resistance level at about $6.85 a share turned into a blood bath on Monday when Summer Street Research Partners analysts expressed skepticism about the effectiveness of IMO-8400, the company’s lead therapy. Shares plummeted, and kept falling throughout the week. However, while Thursday brought more losses, it also brought an opinion from Piper Jaffray analysts that ran counter to Summer Street, calling the sell-off premature and overblown.

Now, for the time being at least, it appears as though Piper Jaffray had the right idea. The stock is up over 10 percent in early trading after the release of top-line data from its Phase 2 trial for IMO-8400 that appears to be broadly positive.

Shares gapped up 16.2 percent to $4.51 a share at the opening bell, fell sharply to just under $4.30 immediately afterwards, then quickly began a buying run that pushed the stock as high as $4.75 a share just before 10am ET, a 22.4 percent gain. The stock retreated again, though, falling back below its opening price as the morning wore on.

The phase 2 trial was a double-blind placebo controlled clinical trial involving 32 patients with moderate-to-severe plaque psoriasis. Idera’s IMO-8400 met both the primary objective of evaluating safety and tolerability for the drug, with no treatment related discontinuation and all patients being well tolerated, and its secondary objective of demonstrating clinical activity in patients with psoriasis.

“Successful completion of this trial is an important additional milestone in our TLR antagonist program. We have studied psoriasis as the initial disease indication to demonstrate clinical proof of concept for our TLR antagonists in autoimmune diseases,” said CEO Sudhir Agrawal, D. Phil. “With these data, we can now pursue our announced business strategy and advance our TLR antagonist drug candidates for the treatment of orphan diseases with high unmet medical need. Towards this goal, our clinical development strategy for IMO-8400 is focused on B-cell lymphomas harboring the MYD88 L265P mutation, and on orphan autoimmune disease indications. Over the remainder of 2014, we anticipate enrolling patients in IMO-8400 trials for Waldenström’s macroglobulinemia, diffuse large B-cell lymphoma and polymyositis and dermatomyositis.”

The treatment showed effectiveness and tolerability at three different dosing levels, giving Idera executives reason for optimism.

“We are very pleased to have met the goals of this trial related to safety and tolerability over three months of dosing, and to have obtained evidence of clinical activity with IMO-8400 in psoriasis patients. This provides further validation of the scientific rationale of blocking over-activation of specific TLRs,” said Senior VP and CMO Lou Brenner, 41M.D. “These data also support our clinical development plans for IMO-8400 in genetically defined forms of B-cell lymphoma and orphan autoimmune diseases.”

However, Summer Street analysts appeared to double down on their initial claims about IMO-8400. Analyst Bart Classen observed that did not mention a dosing effect in the recently-released data, something he considered surprising given it was a dosing study and some patients had very low doses.

The day’s gains may also have generated some interesting technical factors for Idera’s stock. While the release of clinical data is clearly what’s fueling the day’s movement, these other factors could be contributing to the strength of the rebound.

The stock has shown a 14-day stochastic RSI below 0.20 since plunging on Monday, a sign that it’s oversold. And as of yesterday’s losses, the 14-day RSI had also dropped below 30, another sign recognized by traders that the stock is oversold. What’s more, Friday’s gains resulted in the signal line crossing the MACD, which is considered a buy sign.

Finally, the fact that the stock bottomed out at just under $3.70 could show the formation of a rising support line at just under $4 a share based on a hard bounce there in late January. This would play against a clearly defined rising resistance line that’s appeared to cap gains since early September of last year. However, given that this supposed support line would be based on only two bounces, one of which corresponds with the release of positive clinical data, it’s hard to place all that much reliance in it.

 

 

Editor's note: this article had previously referred to Summer Street Research Partners as Summer Street Capital Partners, a separate and unafilliated company. It has been edited to correct this mistake.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


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Results for IDRA
Business Headlines
22 Aug 14 12:25:38
$IDRA: Idera Pharmaceuticals to Host Conference Call and Webcast to Report Second ... http://t.co/OW5AWwJY40 http://t.co/J5rLilXpiC
US_proptrader
22 Aug 14 12:16:23
$ATHM $BONT $DGLY $HERO $HK $IDRA $LEJU $RYAM $TRUE autocharts @ http://t.co/hj7PGeTQk3
Crazy kid
22 Aug 14 11:42:51
$IDRA Well I sure know how to pick 'em!!!
Thomas Collins
22 Aug 14 10:31:10
$IDRA Idera Pharmaceuticals Reports Second Quarter 2014 Financial Results and ... http://t.co/SENZdNBzuF
TravelingFam4
22 Aug 14 05:46:37
$IDRA now up only 40% YOY, w/ MA compact, more trials ongoing, more leadership, more platforms, science getting closer, stronger & stronger
Grail
22 Aug 14 05:44:05
I like $IDRA above 2.88
Stock News Updates
22 Aug 14 05:25:36
$IDRA: Idera Pharmaceuticals and Collaborators Publish Promising Preclinical Data ... http://t.co/9xHVui74SA http://t.co/FPM8HzuLf4
Business Headlines
22 Aug 14 04:25:37
$IDRA: Idera Pharmaceuticals Inc Earnings Call scheduled for 8:30 am ET today http://t.co/PfFP1ZQ6Xy http://t.co/qKzJ039TLh
FonsieTrader
22 Aug 14 04:16:08
Bullish MACD Crossovers 1/2 $ALU $ARCP $AUXL $BKD $CNQ $CPE $CSC $CVX $DVN $EBAY $ELP $ELX $HMC $HPQ $IDRA $INTC $INO http://t.co/zkdRO06isi
Usman sami
21 Aug 14 23:53:22
Rony do aaj jee bhar ky hamain $idra g Aaj us ne rulaya hai jis ny muskurana sikhaya tha" 4HearTouchng PoetRy Follow @piyari_sidra s ...
Media Sentiment
21 Aug 14 16:49:50
$IDRA received a new alert. Find out why at http://t.co/nZwqRf3BRT #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 396
Grail
21 Aug 14 16:46:36
$IDRA Daily do we breakout out of the triangle ? http://t.co/bTWFS09M6Z
pot stock radio
21 Aug 14 15:50:34
RT @SmartMoney777: My list to watch $APP $IDRA $CAMT $PLUG $LIQD $HIMX $FCEL $XONE $VJET
Grail
21 Aug 14 15:44:40
My list to watch $APP $IDRA $CAMT $PLUG $LIQD $HIMX $FCEL $XONE $VJET
Financial Headlines
21 Aug 14 15:25:19
$IDRA: Idera Pharmaceuticals to be Added to the Russell 3000® and Russell 2000® Indexes http://t.co/JO1BEAVZBT http://t.co/3l91gG1SKp
Stock Market Monitor
21 Aug 14 13:25:22
$IDRA: Stocks Buzz - Vonage Holdings Corp. (NYSE:VG), Idera Pharmaceuticals Inc ... http://t.co/pTEirV6Lyg http://t.co/I4lcLRwDUk
TravelingFam4
21 Aug 14 13:01:18
$IDRA Strong close at the HOD with better volume, looking to take out 50 MA tomorrow and maybe the 100 MA right behind it
Media Sentiment
21 Aug 14 12:54:52
$IDRA received a new alert. Find out why at http://t.co/nZwqRf3BRT #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 337
NoanetTrader
21 Aug 14 12:50:19
$IDRA strong close, could be interesting tomorrow
WaterMartyr
21 Aug 14 12:43:46
$IDRA short term break in downtrend. #WatchIt
US_proptrader
21 Aug 14 12:25:26
$CODE $DRL $EXAS $GOGO $IDRA $JMEI autocharts @ http://t.co/cLiki48C5r
Stockaholics
21 Aug 14 12:04:35
LGBS up 42.86%! News update & New Pick Coming: http://t.co/LfDGSIfVSV $QCOR $FCEL $IDRA
TravelingFam4
21 Aug 14 11:48:22
RT @NoanetTrader: $IDRA could be trying to wake up, nice setup multiple timeframes
NoanetTrader
21 Aug 14 11:45:18
$IDRA could be trying to wake up, nice setup multiple timeframes
US_proptrader
21 Aug 14 11:37:28
$BITA $CMGE $DGLY $IDRA $LEJU $SMTC $SUNE autocharts @ http://t.co/cLiki48C5r
Daily Contracts
21 Aug 14 11:37:01
Real-Time feed of company contracts, original agreements and executive updates from Idera Pharmaceuticals $IDRA http://t.co/vnXePZGX9B
NelsNYC
21 Aug 14 11:35:54
RT @carpetscott: We all have demons . My demon is $IDRA . Watch this bounce at $2.46 ish . Not sure what was so enticing about those Sept $…
John Turner
21 Aug 14 11:30:26
$IDRA Idera Pharmaceuticals Reports Second Quarter 2014 Financial Results and ... http://t.co/MlNLlxR9mf
Stock Market News
21 Aug 14 11:25:29
$IDRA: IDERA PHARMACEUTICALS, INC. Files SEC form 10-Q, Quarterly Report http://t.co/D84sRytG0m http://t.co/8epM0gMCNY
US_proptrader
21 Aug 14 11:04:39
$IDRA vol spike
US_proptrader
21 Aug 14 11:02:32
$ANN $BITA $DGLY $IDRA $LEJU $LZB $MRD $SHLD $XNET autocharts @ http://t.co/hj7PGeTQk3
TravelingFam4
21 Aug 14 10:56:41
Highly respected CMO for $IDRA Lou Brenner came to the company early 2014 and took 600K options priced at $5.30....BUY!
FonsieTrader
21 Aug 14 05:09:21
Bearish MACD Crossovers 1/2 $AGI $BCRX $CIB $CTRP $DECK $DVAX $ELNK $EPZM $FIG $FRM $HAWKB $HLS $IDRA $LPNT http://t.co/uky97eF2u9
UseFuLSMS GrOuP
21 Aug 14 01:03:34
=>Be-kaif Sahi,, Be-rang Sahi,, ik Lehar To Ab B Aati hy Dil Laakh Shikasta Ho "Galib" Yaaron Ko Bhulaana Mushkil Ha. :( $iDRA
Stockaholics
20 Aug 14 19:44:00
$GLBH closed up 150% today! Major Update: http://t.co/nHv4FnEmKE $QCOR $FCEL $IDRA
Market Monitor
20 Aug 14 13:25:49
$IDRA: Trader's Watch List: Idera Pharmaceuticals (NASDAQ:IDRA), Cabot Oil & Gas ... http://t.co/XdlWKkpHil http://t.co/aC3wH2w7Om
Stockaholics
20 Aug 14 12:04:56
SKYF ran up as much as 300% Today! News Update: http://t.co/5A4Sg5sQA5 $QCOR $FCEL $IDRA
John Turner
20 Aug 14 12:00:23
$IDRA Idera Pharmaceuticals Reports Second Quarter 2014 Financial Results and ... http://t.co/VpP3yrWU87
US_proptrader
20 Aug 14 10:07:31
$ANR $DEPO $FOLD $GDP $IDRA $KNDI $MOBI $TSL autocharts @ http://t.co/kn4mViMgNq
Jack Trader
20 Aug 14 10:00:29
$IDRA Idera Pharmaceuticals to Host Conference Call and Webcast to Report Second ... http://t.co/QuTC7v7BEw
Mark.Stockpile
20 Aug 14 09:53:01
@PensionPulse how big you fell $IDRA can get if hold through 2015? @EXPstocktrader has suggested BIG 50-60+
Stock Headlines
19 Aug 14 17:25:31
$IDRA: Active Stocks: Linear Technology Corporation (NASDAQ:LLTC), Idera ... http://t.co/KY5DkYZnNN http://t.co/UO8O1lrD3T
A Raja
19 Aug 14 17:19:01
$SSH $IDRA $ANTH keep an eye on these little ones. SSH could see another run to $10 range, enrollment looks great, plenty if cash, & more :)
James P Worthy
19 Aug 14 06:30:57
$IDRA Idera Pharmaceuticals to Host Conference Call and Webcast to Report Second ... http://t.co/C94DT9tNdi
FonsieTrader
19 Aug 14 05:57:26
Parabolic Sar Sell Signals $BTG $BVN $CIDM $GAME $HHS $HMY $IDRA $LHCG $MCY $MRCY $NOAH $QRE $SPEX $WAGE http://t.co/VV2LdR3n9S
Crazy kid
19 Aug 14 04:52:22
$IDRA insider buying is quite strong this quarter! http://t.co/HTkDgoawXz
Crazy kid
19 Aug 14 04:45:24
"@Urameshi84: $IDRA i warned u guys about pumpers. Better get out while you can." Bashers are a very good sign.
Market Updates
18 Aug 14 17:25:35
$IDRA: Investors Are Watching: ReneSola (NYSE:SOL), Idera Pharmaceuticals ... http://t.co/CQ6T090Klx http://t.co/I6XGdxQF4q
Grail
18 Aug 14 16:41:11
$IDRA Daily pattern http://t.co/537uFUpjjd
StockNews
18 Aug 14 16:31:13
$IDRA - Statement of Changes in Beneficial Ownership (4) http://t.co/6Gj43d2mbU
				
				
By  +Follow March 27, 2014 11:11AM
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