Since I last covered it on May 22nd, Array Biopharma [NASDAQ: ARRY] has continued to set new highs. At the time, the stock was gaining bullish momentum on news that it had developed a new therapy for the treatment of Colon Cancer. In the article titled, “Array Biopharma (ARRY) jumps 22% on first chemotherapy-free regimen for colon cancer patients”, I noted that as long as it held above the $25 support that it had established at the time, it would likely make new highs.
It did hold above that level and has since tested new highs of $47. Array’s recent price surge is attributable to the buyout move by Pfizer. On the 14th of June, Array and Pfizer agreed to a merger deal that would see Array investors receive roughly $48 per share. Since that time, the stock has flat-lined and has been trading roughly between $46 and $47. It’s still a massive gain from the time when the company announced its cancer therapy in May. Investors that got in at the $25 level have seen gains of roughly 80%.
More short-term, Array had a slight correction in Monday trading. After experiencing some resistance at $46.96, the stock corrected to close the day at a low of $46.64. It doesn’t seem like ARRY will make much moves from here since Pfizer has said the buyout is expect at $48.
However, there has been, and will likely continue to be, minor and short-term fluctuations as the stock is still trading at around the price that Pfizer offered for the buyout. Congrats to all that have enjoyed the parabolic type move that ARRY has performed over the past 2 months.