Why Tetraphase Pharmaceuticals Inc Shares Popped

Is this meaningful? Or just another movement?

Apr 2, 2014 at 12:42PM

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Tetraphase Pharmaceuticals Inc (NASDAQ:TTPH) popped as high as 14% today after the Food & Drug Administration granted Fast Track designations for both the intravenous and oral formulations of its lead antibiotic candidate, eravacycline.

So what: The news suggests that the FDA considers complicated intra-abdominal infections as a serious unmet medical need and, in turn, raises the probability that eravacycline will be approved much sooner than expected. The most recently approved next-generation tetracycline tigecycline, Pfizer's (NYSE:PFE) Tygacil, is already generating more than $400 million in sales, so Wall Street is naturally excited over Tetraphase's market opportunity.

Now what: Tetraphase will continue working with the FDA to advance eravacycline through Phase 3 development, with its NDA filing expected for the end of 2015. "There is a serious and growing public health threat as a result of the rise in increasingly difficult-to-treat bacterial infections, particularly those caused by multidrug-resistant Gram-negative bacteria," said President and CEO Guy Macdonald. "With eravacycline and our pipeline of novel antibiotic candidates, we are attempting to directly address this threat." So while Tetraphase might still be too speculative for average investors, today's positive news, coupled with the fact that the shares remain well off their 52-week high, may make the stock an interesting pick for biotech-savvy Fools.

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4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

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This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

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KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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