The only bearish investor putting pressure on Pharmamar, the fund AHL Partners, It has started to fold down candles on solid signs of a rebound.
The London hedge fund has just cut its short positions to 0.79 percent from the previous 0.8, according to CNMV records.
This is a very modest short withdrawal, leaving the bearish charge against Pharmamar at 145,000 shares.
But the move is significant because it is the first time AHL Partners has reduced short positions since entering Pharmamar at the end of July, with 0.52 percent.
Other relevant bears, such as Consonace Capital o Worldquant they were also abandoning short positions as the biopharmaceutical headed for the year’s highs at 119 euros in February.
Turkish aid for Pharmamar
After a particularly tortuous year-long straight that brought the group’s price to the edge of 50 euros, Pharmamar finally savored positive news this Wednesday.
The deal to sell lurbinectedin (Zepzelca), its flagship drug, in Turkey filled investors with optimism.
This is a firm step for the Galician company in an emerging market on the rise and that the lung cancer against which the drug is indicated is the leading cause of death from cancer.
For this reason, the analysts of Bankinter They qualified the news as “positive” and recalled that the US FDA already granted accelerated approval of this compound in 2020.
In addition, the same did the regulators of other markets, such as Canada, Australia, Singapore, or the United Arab Emirates.
This “positive news has been translated into important increases since the income estimates are higher. In addition, the rebound is not strange after the heavy punishment of the last sessions, “he said. Manuel Pinto, XTB analyst.
Pharmamar’s ground in formation
With the news from Turkey, the Galician biopharmaceutical stabilized its price at 56 euros. As many investors, including bears, are seeing, there is a clear bottom in the making.
The price “has been making increasing lows and has broken the downward guideline that brought the value since the falls in October,” he said. Pinto.
More importantly, the stock has been supported by the 38.2 percent Fibonacci retracement since the last dip, which may be a stable point in attempting to regain lost ground.
This level coincides with approximately 55.6 euros, the upper part of the ground that is forming Pharmamar.
The support around 50-52 euros per share has been very important, since the value has touched it on several occasions. “It is interesting to stabilize the action and try the bullish break,” said the sources consulted.
Double-digit targets for rebound
The fact that the falls have been braked in a technical area as relevant as 55.6 euros supports the comeback options for Pharmamar.
“The objectives are 61.5 euros, which is the most important resistance in the medium term,” explained Pinto. A little below the average of 50 sessions, at 60 euros, whose conquest could offer strong short-term support to the value.
This area is 10 percent away, but it would not be unreasonable if Pharmamar He will attack her seeing the last impulse.
The news from Turkey is important because Zepzelca, the licensed drug, is the great bet of the Galician group. In the last quarter, it closed with the best sales record since it began to commercialize.
In fact, as finance.com explained, the company has just taken the first step towards the approval of Zepzelca in Europe, where it will market the product without Jazz Pharmaceuticals, its US partner.