Ultragenyx Pharmaceutical Inc. (RARE), a clinical-stage biopharmaceutical company yesterday announced topline data from their phase 2 UXOO7 glucose transporter. The drug is used to treat patients with seizures. The mid stage study showed that the drug did not meet its main goal, and did not show a statistically significance in the reduction of the frequency of seizures compared to the lacebo.   

Ultragenyx Pharmaceutical Inc.  CEO’s Comments

“These data suggest that UX007 has a clinically meaningful effect in Glut1DS patients with absence seizures,” said Emil D. Kakkis, M.D., Ph.D., Chief Executive Officer and President of Ultragenyx. “We look forward to studying UX007 in our Phase 3 study in Glut1 DS patients with movement disorders, and continue to evaluate our plans in the seizure indication.”  Globe Newswire

RARE Technical Analysis

(Click on image to enlarge)

RARE opened trading yesterday at $77.73 which was up from the previous day’s trading close of $77.72. Shares closed trading yesterday at $78.36 and spiked down after market to $73.20, equivalent to a 7% decrease from the closing price. Taking a look at the daily chart we can see that the last time RARE traded below these levels we have to go all the way back to February 8th, when it traded at $71.38.

Taking a closer look at the daily chart we can see that before the spike down RARE had been in an overall upward trend dating back to January 30th when it traded at $67.80. RARE has a float of 38.58 million shares and traded below the normal daily trading volume on Wednesday.

For trading purposes, I would like to see RARE open trading on Thursday below $75.00 and if it does I would be looking to take a short position at the bell. My stop loss would be $0.35 from my entry position fearing anything more than that and the stock would start to fill in the gap down.