Kerx Stock Quick Win by the Algorithm: KERX Elevates After FDA Approval Date Set

Quick Win by the Algorithm

On April 12, 2017, the I Know First algorithm issued a bullish 3-month forecast for Keryx Biopharmaceuticals (NASDAQ:KERX). KERX had a signal of 235.64 and a predictability of 0.65. As a result, in accordance with the forecast, the stock increased by 43.98% over a 3-month period, resulting in a quick win by the algorithm.

kerx stock

Keryx Biopharmaceuticals, Inc. is a biopharmaceutical company focusing on providing medicines for patients with renal disease in the United States. Its main product is Auryxia, an orally available, iron-based medicine for the control of serum phosphorus levels in patients with chronic kidney disease on dialysis. Japan Tobacco Inc. and Torii Pharmaceutical Co., Ltd. help develop and commercialize Auryxia in Japan. Keryx Biopharmaceuticals was founded in 1997 and is headquartered in Boston, Massachusetts.

Quick Win by the Algorithm

KERX stock has boomed over the past 3 months. Initially, the share price increased due to optimism for the company’s upcoming Q1 earnings. From early May until the earnings call on May 9, the share price was on a sharp incline. However, the company missed earnings and the share price began to fall flat.

Even with disappointing earnings, KERX has rebounded over the past 2 months. While the company missed earnings, its Auryxia sales were $10.4 million. KERX hopes that it can sell $55-60 million of Auryxia this year, which would nearly triple 2016’s total. KERX focuses mainly on Auryxia, so if its best product is improving, that is a strong indicator for the company’s future success.

Finally, another reason the stock price rose was because of possible 2018 sales. The FDA set November 6 as the date when it will decide whether to allow Auryxia for stage 3-5 chronic kidney disease patients. KERX has submitted the claim to the FDA that Auryxia works extremely well in stages 1-2, but can be even more effective if used in stages 3-5. Trials have shown that Auryxia can successfully treat anemias in stage 3 kidney disease patients. Being that 1.6 million Americans have iron deficient anemias, this FDA ruling could provide the next monumental step for KERX.

Current I Know First subscribers received this bullish forecast on KERX on April 12, 2017. 

Before making any trading decisions, consult the latest forecast as the algorithm updates predictions daily. You can use the algorithm for intra-day trading. The predictability tends to become stronger with forecasts over longer time-horizons such as the 1-month, 3-month and 1-year forecasts.