EPOCH 45: BIOTECH MARKET RESEARCH $CABA

Cabaletta Bio

Mark your calendars—Cabaletta Bio (CABA) is approaching a critical inflection point. The upcoming data from the RESET-Myositis and RESET-SLE clinical trials will reveal the safety and efficacy of CABA-201, a fully human, autologous 4-1BB anti-CD19 CAR T cell therapy in patients with immune-mediated necrotizing myopathy and systemic lupus erythematosus. With investor anticipation running high and market volatility expected (potential swings of +/- 120%), all eyes are on CABA.

Every Monday we are out with public biotech research, profiling biotech companies with near term catalysts. This will focus primarily on the major market moving biotech events such as data readouts from the major scientific conferences as well as potential regulatory approvals.

We will not offer specific trading advice (and we do not hold any publicly traded biotech equity), but rather flag emerging events that will likely materially drive stock prices (sometimes +/-100% in either direction).

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HOW TO PLAY BIOTECH APPROVAL/DATA READOUTS ANNOUNCEMENTS

While biotech equities will move on news of announcement, often if there is high conviction in a positive read, a large run up ahead of the news will occur and the actual event turns into a sell the news event. Sometimes, investors wait for the actual event to make a long/short decision. And obviously if the news is disappointing (more often than not) the stock will tank.

This is not financial advice so you will have to make your own call on how to best play these events. Our aim is simply to flag catalysts with high projected volatility.

ALERT: CABA-201 data update from RESET-Myositis and RESET-SLE clinical trials 

DATE: 11/17

IMPLIED VOLATILITY: +/- 120%

BACKGROUND: