Retrophin, Inc. (NASDAQ:RTRX) A Buying Opportunity
Tech giants see healthcare and pharma as the next big thing
Retrophin
Ticker: NASDAQ:RTRX
Price: $15.32
The global biopharmaceuticals market is found witnessing a CAGR of 7.14%. The market is largely driven by the growing geriatric population, increasing burden of chronic diseases, and rising inclination toward targeted therapy. Also, the huge demand of biopharmaceutical is facilitated by an accelerating focus in research and related investment.
The ability of biopharmaceutical products to address previously untreatable conditions has introduced innovative drugs in the market. About 70% of the potential medicines in development represent novel approaches to addressing diseases in areas, such as neurology, cancer, diabetes, and immunology. Biopharmaceuticals have thus seen to reduce the number of deaths due to cancer and HIV/AIDS in the past decade, which has led to an increase in the adoption of biopharmaceuticals in the global market.
In addition, the market demand for biopharmaceuticals is increasing with the rising desire to circumvent both the side-effects associated with some small-molecule therapeutics and invasive surgical treatments. However, high cost, along with the difficulty of the development of a biopharmaceutical drug, is one growth limiting factor.
Business Summary
Retrophin, Inc. is a biopharmaceutical company. The Company is focused on the development, acquisition and commercialization of therapies for the treatment of serious, catastrophic or rare diseases.
The Company sells three products, including Chenodal (chenodeoxycholic acid), Cholbam (cholic acid) and Thiola (tiopronin).
Its Chenodal is approved in the United States for the treatment of patients suffering from gallstones in whom surgery poses an unacceptable health risk due to disease or advanced age.
Chenodal has also been care for cerebrotendinous xanthomatosis (CTX) patients.
Its Cholbam is approved in the United States for the treatment of bile acid synthesis disorders due to single enzyme defects and is further indicated for adjunctive treatment of patients with peroxisomal disorders.
Its Thiola is approved in the United States for the prevention of cystine (kidney) stone formation in patients with severe homozygous cystinuria.
Shayne Heffernan Trade Idea
“We predict the future price of Retrophin will come in around $29.14 which will give the stock a price increase of +90.21%.”
Price Performance
Relative Valuation
Technical Indicators
Overall, the bias in prices is: Upwards.
The projected upper bound is: 17.44.
The projected lower bound is: 13.25.
The projected closing price is: 15.35.
Candlesticks
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white candles.
Momentum Indicators
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
Stochastic Oscillator
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 14.8791. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 13 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 47.20. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 59 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -105.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 6 period(s) ago.
MACD
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 11 period(s) ago.
Rex Takasugi – TD Profile
RETROPHIN INC closed up 0.810 at 15.320. Volume was 20% below average (neutral) and Bollinger Bands were 38% narrower than normal.
Open High Low Close Volume 14.880 15.340 14.720 15.320 360,628
Technical Outlook Short Term: Oversold Intermediate Term: Bearish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 15.82 15.64 14.13 Volatility: 88 86 74 Volume: 717,629 473,408 460,367
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
Summary
RETROPHIN INC is currently 8.4% above its 200-period moving average and is in an downward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods.
Our volume indicators reflect volume flowing into and out of RTRX.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on RTRX.O and have had this outlook for the last 1 periods.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of the NASDAQ Stock Market.
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Sources:
Retrophin Company Website
Thomson Reuters Metastock and Eikon financial tools
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