No news from FDA by end Sep-2020 was a bummer! As alluded to in my last article, PYC's SP is now cooling.
However
prudent investors might take this opportunity to accumulate as the deadline for rare paediatric disease designation (RPDD) and Orphan Drug Designation (ODD) have been clarified by Kaggen Asmus (Chief Business Officer - PYC) in a Zoom meeting and subsequent follow ups last week.
- Timeline of 60 days for RPDD (30.09.2020) is the initial response from FDA. Factoring in FDA's request(s) for further information and PYC's responses, the process might take as long as 12 months to have RPDD granted.
- The US House of Reps has passed legislation to permanently extend the RPDD program beyond 30.09.2020 last week. It now requires senate approval and presidential seal.
- Timeline for ODD is 90 days and PYC is expecting to hear back from FDA by end Oct-2020.
Downside:SP has retraced to 15c which is the 61.8% Fibonacci level. It is now sitting at the middle of the brown uptrend channel. It might hit
14.5c which is the 50% retracement, then a lot of buyers would come out as this is a popular bounce up level. Below that, the 14c level would provide support as there were 2 recent peaks at that level. Without any black swan event, the bottom of the uptrend channel of 13 - 13.5c would provide a floor. A saving grace is the volume has been lightwhile SP was trendingdown in the last 11 sessions.
Upside:The next price target is
18.5 - 19c by end Oct-2020 if the Orphan Drug Designation is granted by the FDA. This would be a 23.3% jump from current 15c up to 18.5c. Given PYC's lead drug VP-001 to treat Retinitis Pigmentosa RP11 fits the ODD criteria well, PYC would be quietly confident. With more news in the pipeline such as rabbit eye clinical test, more information on the 2nd lead drug before the year end, the 20c level is well within sight.
These are my TA thoughts, DYOR! If you would like more of these charts and analysis, please click the "Great analysis" button for encouragement.
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