What's Behind Furiex's 138% Jump This Week
Subscribers have asked what our current take is on Furiex Pharmaceuticals, Inc. (FURX). The company's stock, which is part of our Speculative Spin-Off List, closed at $45.97 a week ago Friday. This week it closed at $109.67. The reason for the 138.6% jump? Results from two phase III studies were extremely encouraging for the company's candidate eluxadoline, which is designed to treat diarrhea-predominant irritable bowel syndrome (IBS-d). Approximately 28 million people in the U.S. and European markets suffer from IBS-d which means there is a huge market for the treatment if it's approved. The company will seek U.S. approval in June, 2014.
FURX has seen its stock surge 623.4% since being added to our Speculative Spin-Off List. Conservative investors may want to take their FURX profits now, but we are not selling yet. We believe there is more upside to the company's stock as a partnership or buyout is quite likely.
-Rex M. Jacobsen
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