The biotech name reached an FDA alignment regarding its Danon disease therapy trial
Rocket Pharmaceuticals Inc (NASDAQ:RCKT) stock is soaring today, after the biotech name reached an “alignment” with the U.S. Food & Drug Administration (FDA) regarding a mid-stage trial design for its Danon disease therapy, RP-A501, for which there are currently no FDA-approved treatments. The company also announced a public offering of 7.8 million shares common stock priced at $16 per share, and Needham cut its price target to $53 from $60, while Leerink Partners raised its price objective to $52 from $49.
At last glance, Rocket Pharmaceuticals stock was up 42.6% at $21.80, and earlier surged to $22.32 — its highest level since June. Following a consolidation at the $16 level, this bull gap has the stock breaking above several short- and long-term moving averages. Since the start of the year, the equity is currently up 10.6%.
In response, RCKT’s typically quiet options pits are bursting with activity. So far, 5,309 calls and 2,285 puts have been exchanged, which is 63 times the average intraday volume. The September 22.50 call is the most popular, with new positions being bought to open there.
Analysts are wholeheartedly bullish on the security, with all 12 in coverage carrying a “buy” or better rating. Meanwhile, short interest represents 10.1% of the stock’s available float, and would take 12 days to cover, at RCKT’s average pace of trading.