Rigel pharmaceuticals is a small pharmaceutical company, with one approved drug and several others in the pipeline. They have a strong deal in place with Eli-lily potentially worth over 1 billion dollars and their CEO recently bought half a million dollars worth of stock.
I'm long on the stock, but when I say it has a big move, that move can go in either direction.
That's because they're about to complete a phase 3 study on how their one approved drug can be used to treat covid patients.
I know most of us have moved on from Covid, but the reality is it's still here and while the pandemic is in a new phase, there will still be millions who will get sick this year and hundreds of thousands that will need some kind of medical treatment.
Rigel has a market cap of 225 million. They have revenue of 86 million with just a few thousand patients. If you were only to say 20,000 people would be prescribed their medication their would be at least a 5 fold increase in revenue.
Phase 2 was promising and if they simply hit the same results they will have one of the most effective treatments on the market.
If the results are good I easily expect this stock to quadruple if not more. If the results are bad it will certainly tank (in the short term) and create a great buying opportunity.
I've sold most of my long shares and am holding January calls at 2 and 3 dollars. If the results are bad, I'll buy the dip, but if the results are good, we'll you'll all get a hug from me.
Best of luck.
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