GlycoMimetics Inc (NASDAQ:GLYC) shares are coming into an extremely interesting test of technical support, as highlighted in the chart below. The stock has been trending lower for most of calendar year 2018, but valuations may be stretched on the downside and a snap-back due to upcoming catalysts, poor sentiment, and technical support may be closer to inevitable as we move toward year-end.

At least one analyst would strongly agree as well. H.C. Wainwright came out on Tuesday and initiated the stock with a Buy rating and a price target all the way up at $24, which basically implies a retest of the highs seen this year (which were around $25/share).

GlycoMimetics Inc (NASDAQ:GLYC) has a strong pipeline and some big catalysts coming at it early next year, which is likely the underlying force driving the vehemence of the Buy rating initiation.

And there’s a lot to like here, especially in light of the sharp drop in share price and the nearby technical support. Analyst attention has gravitated toward the company’s lead candidate, rivipansel, a pan-selectin inhibitor, in Phase 3 development for the treatment of sickle cell disease vaso-occlusive crisis (SCD VOC).

GLYC focuses on the development of glycomimetic drugs to address unmet medical needs in diseases in which carbohydrate biology plays an important role.

Rivipansel is being developed with Pfizer, which is also part of the narrative here. PFE has about the deepest pockets around. And it’s helpful to have at least some of your pipeline program aligned with pockets like that.

Much of this game is about establishing market credibility with a program or platform. Once the market has seen you develop some successful product, it will value your in-development goods at a much more respectable premium, which makes it a whole lot easier to fund development and bootstrap to market independently.

So, deals with the likes of PFE help to get that process going.

The company also has a wholly-owned product, uproleselan, an E-selectin inhibitor that targets endothelial cells that is intended to interrupt bone marrow cellular adhesion with leukemic cells.

Here’s the real rub of the issue: the company has upcoming catalysts in 2019 that include the initiation of uproleselan Phase 2/3 and Phase 2 NCI/ HOVON consortium-funded frontline acute myeloid leukemia (AML) trials, respectively, anticipated 1Q19; top-line rivipansel Phase 3 data in SCD VOC patients expected 2Q19; and proof-of-concept uproleselan M-protein data in multiple myeloma (MM) patients expected mid-2019.

That’s a busy slate.

We would also note that the enrollment completion for the rivi Ph. 3 will likely be announced some time in Q1 because it will show the path as on track after a rocky patch earlier this year.

In short, we have a stock nearing key support that has two late-stage products coming to fruition with catalysts closing in. And all the speculative money has already flown the coop. That’s a strong recipe for good risk/reward.


Top Down View

GlycoMimetics Inc (NASDAQ:GLYC) bills itself as a clinical stage biotechnology company that focuses on the discovery and development of novel glycomimetic drugs to address unmet medical needs resulting from diseases in the United States.

Its advanced drug candidate, rivipansel, is a pan-selectin antagonist, which is developed for the treatment of vaso-occlusive crisis in sickle cell disease and has evaluated in a Phase 3 clinical trial, conducted by its strategic collaboration with Pfizer Inc.

The company’s drug candidate, GMI-1271, an E-selectin antagonist, is evaluated in a Phase 1/2 clinical trial as a potential treatment for acute myeloid leukemia and is in a Phase 1 clinical trial for the treatment of multiple myeloma. It is also developing a Phase 1 clinical trial drug candidate, GMI-1359, a combined CXCR4 and E-selectin antagonist.

Uproleselan (yoo’ pro le’sel an) is designed to block E-selectin (an adhesion molecule on cells in the bone marrow) from binding with blood cancer cells as a targeted approach to disrupting well-established mechanisms of leukemic cell resistance within the bone marrow microenvironment. In a Phase 1/2 clinical trial, uproleselan was evaluated in both newly diagnosed elderly and relapsed/refractory patients with AML.

In both populations, patients treated with uproleselan together with standard chemotherapy achieved better than expected remission rates and overall survival, as well as lower than expected induction-related mortality rates, as compared to historical controls which have been derived from results from third party clinical trials evaluating standard chemotherapy.

The U.S. Food and Drug Administration (FDA) has granted uproleselan Breakthrough Therapy Designation for the treatment of adult AML patients with relapsed/refractory (R/R) disease. GlycoMimetics is currently implementing a comprehensive development program across the clinical spectrum of AML. This includes a company sponsored Phase 3 trial in R/R AML and two consortia-sponsored trials in newly diagnosed patients. One consortium trial is being sponsored by the NCI and will enroll newly diagnosed patients fit for intensive chemotherapy. The other trial is sponsored by the HOVON group in Europe and will enroll newly diagnosed patients unfit for intensive chemotherapy.

GlycoMimetics Inc (NASDAQ:GLYC) had no reported sales in its last quarterly financial data. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($219.8M against $6.4M).

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