Medivation collapsed in March after an Alzheimer's medicine
failed in a late-stage trial, and one investor is abandoning hopes
of a rebound.
optionMONSTER's tracking systems detected the sale of 16,000 June 6
calls for $5.50 against no existing open interest. The trade pushed
option volume in the small-cap drug developer to 14 times greater
MDVN rose 4.57 percent to $11.66 in morning trading. The stock is
down 71 percent since March 3, when the company and partner Pfizer
said that Dimebon failed to improve the mental abilities of
Alzheimer's patients. MDVN had rallied about 60 percent in the four
months before the news.
Today's calls were probably sold by a shareholder locking in an
exit price on the stock. The transaction reflects a belief MDVN has
little hope of rallying, even though it has been bottoming out over
the last two months and some analysts think that Dimebon could
still be approved for some uses.
(Chart courtesy of tradeMONSTER)
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