As I predicted, on Tuesday morning, $GTHX shot up 40% to just over $43 dollars a share premarket after the FDA approval for COSELA, and after a small sell-off, was quickly thwarted by the market deciding to begin correcting itself the very same day, with an especially hard hit on bio pharmaceutical companies. I didn’t sell a single share. As of writing this, $GTHX sits at $26.89, which is a BARGAIN for what’s about to come next for this company, short and long-term. Why am I so confident? Read an actual DD below unlike my shitty one from last week.
What is COSELA?
Last week, COSELA became the only FDA-approved therapy to help proactively deliver multi-lineage myeloprotection to patients with extensive-stage small cell lung cancer being treated with chemotherapy. Not only is the drug going to be used for lung cancer as early as next month, but G1 is currently conducting trials for COSELA’s benefits in other cancers as well, such as breast cancer. If their results are as positive as they were for lung cancer, the goldmine grows tenfold.
Commercialization
With pharmaceutical companies, one of the biggest concerns following their trial stages as they transition into the commercialization stage is whether they have the funds or resources to make it happen. With G1, this should not be an issue, as they have partnered with Boehringer Ingelheim, one of the worlds leading pharmaceutical companies and a giant in the lung-cancer department. G1 has expressed that this move is not only going to allow them to commercialize the drug in a cost-efficient manner, but also continue their research on COSELA’s effects on other cancers. With COSELA’s distribution beginning next month, this will dramatically increase revenue.
Analyst Price Targets
After the approval of COSELA, the average price target has increased to $60.17, with $83 being the high end and $41 the low end.
Institutional Holdings Institutions own 77.43% of the current shares, and institutions aren’t known to abruptly sell off, AKA they are in it for the long run. With such a large percent being held by institutions (someone correct me if I’m wrong, I believe this is correct), this can allow a huge increase in share price with even a small amount of retail interest, which I believe is bound to come sooner or later. At the end of the day yesterday, an above-average increase in volume shot the price up almost a full dollar.
Earnings on Wednesday
As always, there is potential for a price bump at earnings, and their Q4 earnings report is this Wednesday after hours, as well as a 2020 recap.
Conclusion
$GTHX has flown under the radar for a while now and I believe it’s only up from here. I’m bullish as fuck and believe the upsides vastly outweigh any downsides. I have purchased more shares during the dip and hope to see some great returns in the near future.
Not a financial advisor. Do your own DD and make your own informed decisions before investing.
Submitted February 20, 2021 at 08:28PM by DaveyJohnsonsGhost https://ift.tt/3uhLQxE
