Regeneron (REGN) is a biotech working in recombinant DNA technology. Until '94 it generally traded between 10 and 20 dollars until the FDA beat it up on it's treatment for Lou Gehrig's Disease. While it was trading at the $4 level at the end of '94, the former chairman of Merck(I believe) took the helm and the stock climbed back to about 11, then traded between 11 and 14. In late May, Option volume increased, news about a discovery concerning muscles was announced, and the stock has risen sharply to Friday, May 24 '96 close of 18.875.
Historically, the stock has failed around 22. Yet AMGEN has more than a 17.7% stake with warrants to increase it's stake to 20%, at 16$ per share. Could this be the time it breaks out? |
