Saturday, December 4

Pharmamar needs a double digit bounce to dodge the cliff


The price of Pharmamar managed to stabilize at the edge of 60 euros, but is still very close to dangerous terrain. The biopharmaceutical lost 17 percent in the year and is the third worst value on the IBEX 35.

From the maximum that reached in February in the 119 euros, the price of Pharmamar corrects 47 percent, while the number of brokers dissatisfied with the pharmaceutical company does not stop growing.

The stock market trajectory of the Galician group has taken a nosedive, as have the valuations. At the beginning of the year, the consensus of finance.com experts calculated a target price for the company of 123 euros, but this Friday they do not go beyond 91 euros.

The results through September continued to impact the value and ate the earnings per share projections. The nerves reached such an extent that the company had to send a statement to the CNMV where it showed its bewilderment over the stock market penalty.

More weakness in Pharmamar

Despite the punishment received and the company’s efforts to stop the bleeding, Pharmamar continued to do penance on the floor.

“The value has seen the technical aspect weakened with the recent loss of 66.5 euros, a level that was acting as relevant support on several occasions since June 2020, and whose drilling accelerated the falls at the beginning of November”, said José Luis Herrera, analyst at Banco de Inversión Global.

Now, the price has stabilized at 60.5 euros, the area that acts as the most relevant support for the price.

If this reference is lost, the target to fall to the next support zone would be 50 euros, which are the relative minimums for the stock in April 2020.

The margin of decline to this support is an additional 20 percent over current levels, reflecting the size of the cliff that Pharmamar is looming, the sources consulted said.

Sustainable bounce options

Above, Pharmamar’s stock situation is also very clear. As explained by the head of finance.com analysis, Josep Codina, the key to think about a sustainable rebound is for the price to recover 70 euros.

To reach this safety zone, the biopharmaceutical needs a 10 percent bounce, a double-digit advance that will not be easy to achieve.

And it is that before he will have to deal with the old support of 66.5 euros, now converted into “draft resistance”, said Herrera.

But if it could overcome this area, the rally could extend to the area of ​​75-80 euros, according to Herrera calculated.

Difficult to get out of the traffic jam without relevant news

The sources consulted explained that, in any case, Pharmamar would need the news flow to turn in its favor. Aplidin against the coronavirus has been the engine of progress, but the success of the Pfizer pill has put the journey of this medicine in doubt.

However, Codina does not give up everything for lost with this drug. “If you are successful in this treatment you can also contribute to the control of the disease and can benefit,” said Codina, in clear reference to what has happened with vaccines, which not only one has been imposed, but several coexist in the market ”, explained the finance.com expert.

This race for a drug against Covid-19 was joined by the pharmaceutical company Merck, which has achieved great support from the market.

Delay in reaching the market

Pharmamar’s problem is that all these rivals are about to hit the market with their medicines, but the trials with Aplidin are more late, according to finance.com.

The price has been closely linked to its bet against the coronavirus and the falls came as the delays in phase three of the trial became known.

In fact, Pharmamar’s securities are trading somewhat above 60 euros, prices at which it moved when Aplidin began to be an option against the coronavirus



www.finanzas.com

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