A Conversation with ZZlangerhans
When he's not working with FloridaBuilder to inspire stock pick haikus, ZZ is our resident biotech expert.
Click here to read part one of my two part interview. From the interview:
Another of my recent trades is Alimera Sciences (Nasdaq: ALIM), who in December received a surprising Complete Response Letter from the FDA for the Iluvien ocular implant for diabetic macular edema. I saw the CRL as a "soft" rejection with no additional clinical trials required, but the effect of the rejection on the share price was proportionately mild. I took a position in CAPS to help me monitor the stock and waited, and eventually the share price degraded to the point where I felt a trade was warranted. I bought 2000 shares at 9 which almost immediately rose to 10.3. In 2010 I would likely have booked my profit, but since I left so much money on the table last year I decided to keep holding through the Iluvien resubmission. Subsequent extended data from the Iluvien clinical trial dropped the share price back down to 8.5, so the conclusion of this story is yet to be seen.