MAP Pharmaceuticals Inc (MAPP) - Goes Green on a CRL

Tuesday was a phenomenal short squeeze. MAPP received a CRL and squeezed shorts from $13 pre-market to $17.50 intra-day. The CRL was not a harsh one (no new clinical trials required), but probably delays approval by one year and there are many unanswered questions.

To Short or To Long?

Short Case – Probable one year delay to market, Questionable Mgmt - late 10k filing & refusal to discuss key points on CRL, little share price decline on CRL.

Long Case – approval more likely now (if you believe management) & price targets at IB’s increasing a little (not surprising given they need cash).

For me this is a compelling short. I picked up short at 16.30av (Tuesday and Wednesday), and fortunately some April $15 puts this morning (at 55c).

So far so good. When MAPP finally release their 10k, this may provide more negative news. Also the stock is 80% insto owned, so maybe we see fresh selling from them in the new quarter (next week). MAPP intend to meet with the FDA to discuss the CRL (6 weeks + time), until then there is great potential for more fades.

Also, see this good MAPP review.


Open Trades Short
AFFY, AFFY (Apr $15 puts), MAPP, HUSA (April $7.5 puts), NGSX, SVVC

Open Trades Long
ALXA, RGEN, EXEL