What A Trade:

Telesta Therapeutics (TST.TO) skyrocketed 100%+ ($0.38 to $0.75+) after our timely write-up on October 27 (exit trade alert here). Tomorrow is the binary ADCOM meeting, but we sold out our position on the massive gain, so we do not have a position anymore because of the binary risk and the significantly reduced mis-pricing due to the huge run-up.

Our timely report was based upon an expected rise into the ADCOM meeting, although shares surged sooner than expected on news of an exclusive license agreement with Ipsen.

Unfortunately, the binary risk materialised; the people at the ADCOM meeting voted MCNA down. Still, the FDA will ultimately decide in February whether MCNA is allowed to be commercialised, although the chances of than happening are now severely diminished. All that’s left further is the bag of cash they have and the Ipsen deal. Perhaps they can work out a deal with the FDA, but we’ll have to see how management responds on the ADCOM setback.

The dust is now settling down, the only upside I see is that management works out a deal with the FDA that they will approve MCNA but with conditions. This would be great news, and a huge catalyst for the stock price. We still own a small portion as we think a deal may be possible, we did sell out of the majority of our position, as alerted for a nice gain.

Where To Next:

We sold out our position in HOTR, for a nice 8% quick profit. Could have been more, but the q3 earnings were a mixed bag so the market response was timid. But a quick gain is always good to have.