$SLDB with two HUGE buys

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Solid Biosciences, I just recently stumbled across this myself.

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They are a life science company that focuses on making both specialty and generic drugs. Their main area of work is finding treatments for Duchenne muscular dystrophy (DMD). Anyway, that’s not what caught my interest, I saw a few HUGE transactions recently.

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On January 11th: Perceptive Life Sciences Master Fund Ltd bought 18m in stock & Ra Capital Healthcare Fund Lp bought 5m in stock. Making these guys own 29% of the fuckin company (they owned stock before).

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$SLDB only has a 297m mkt cap, so it’s early.

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So after I saw these unusual purchases, I thought why?

There was nothing super material, but there was a breadcrumb trail that tells me something big is about to happen…

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I dove in and found on Jan 8th 2024, they had just raised $108m… Also, in mid-November 2023, they just got FDA clearance for an Investigational New Drug application for SGT-003, the Company’s next-generation Duchenne Muscular Dystrophy (“Duchenne”) gene therapy candidate.

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It seems they have some serious momentum between the approval and huge funding secured, but just wait till you see the stock price action… I don’t think that is all.

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$SLDB Performance

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Since they announced the FDA clearance in November they have been fucking ripping… On November 14th when they announced the FDA clearance, the stock was at around $2.15. Now it trades at $8…

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It is up a whopping 272% since the news, 34% in the past 5 days, and 61% this month.

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Well, they just raised $108m and had some huge in-market buys from funds, so what do they know? The news came out last November, so it’s not that. Just remember these guys ALWAYS know something we don’t. I wouldn’t be surprised to see a breakthrough or big announcement soon based on recent huge buys and crazy price action.

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However, be cautious. This is a high-risk play. They have no major red flags, but they burn cash like me at the strip club after 12 wobbly pops, but somehow manage to re-secure cash like the strippers I give mine to.

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They have negative cash flow and are betting on a pharma breakthrough, it’s all a bet, it’s just nice to see the big money go in first. Watch with caution.

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That’s All Folks

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Thank you for reading. Like usual. Not financial advice…

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Full disclaimer here

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Cheers,

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