Jul. 31 at 1:02 AM
$ELTX Initiated a 1/3 starter position at
$2.88 -
$2.93 today while also selling
$2.50 puts to further lower our effective cost basis.
In my view, the recent collapse down to near 52-wk lows (
$2.66) creates a compelling risk/reward disconnect. The stock took a double beating over the last six weeks... first dropping 70% when Phase 2 AMPLIFY-7P missed its primary ITT endpoint due to a trial baseline imbalance, and then getting hit with a dilutive
$15M direct offering at
$3.43.
What makes this setup intriguing now, IMO, is the follow-up data released on June 17th showing three confirmed complete responses in microsatellite-stable pancreatic cancer when paired with checkpoint inhibitors... an outcome that's very rare in this disease (0–8% historical CR rates). With 84% of R0 resected patients showing clear clinical benefit and
$15M in fresh institutional capital backing their Phase 1 combo trial, the post-offering wash-out has handed us a deep discount on a proven T-cell priming engine.
Moving forward, I’ll be scaling into this position accordingly as the setup develops, keeping in mind that the upside potential at these depressed levels is significant. As always, NFA. Please do your own work/DD.
(Daily chart attached for reference)
