This Company’s Push For a COVID-19 Treatment has Its Stock on the Mend
Japanese pharmaceutical company Takeda Pharmaceutical (TAK) is introduce an antibody treatment for COVID-19 patients sometime this year. The treatment is being developed by harvesting antibodies from people that have already recovered from the virus. The company’s efforts to develop a treatment is also finding support from the U.S. government following the order from President Trump to the FDA to fast-track COVID-19 drugs and vaccines.
“We have to remove every barrier or a lot of barriers that were unnecessary, and they’ve done that to get the rapid deployment of safe, effective treatments,” Trump said at a White House briefing.
While TAK was late the vaccine game, they are working quickly to produce some form of treatment. As other companies that have been working on a vaccine have generally benefited, TAK broke a key level of support just above $16 on increasing volume. Since March 16, the price has stabilized and the was able to produce some high-volume advances that couldn’t sustain itself as it tested $14.
Today, the price was able to clear that level on average volume. It looks like the share price may finally be reflecting the potential of companies working to develop solutions to a growing novel coronavirus problem
The near-term potential for TAK is to retest the prior resistance at $16 and then move to the top end of its prior channel at $18.
For option traders, the 15 May 20 $15 call option could be bought for around $1. If the price of the stock reaches $18 by expiration, the option will be worth $3 for a 200% gain. If the stock reaches $16 in the next couple weeks, consider selling the $15 strike and buying the $16, removing most of your original cost basis. This process is called a “roll.”