This new drug is made from a popular party drug called Ketamine. They are saying they will control this and the possibility of becoming addicted by having patients only getting their dosage at a doctors office via a nasal spray. From what we hear, insurance companies will be paying for this and patients will have their normal copays and deductibles.
So far, patients who have been on the trials for months have noticed huge improvements in their mood, attitude and say this drug has helped much better and quicker than any of the other anti-depressants the patient has taken.
Over 15 million Americans take anti-depressants resulting in a very large market. The companies with the top sales for anti-depressants include Allergan, Alkermes, AstraZeneca, Bristol Myers Squibb Company, Eli Lilly And Company, Forest Laboratories, GlaxoSmithKline, H. Lundbeck, Merck, Pfizer, Teva Pharmaceutical Industries and Takeda Pharmaceutical.
The Antidepressant Drugs Market will experience significant growth from 2018 to 2024. I personally feel that our country is still suffering from a drug epidemic with Opioids, Heroin, and other types of medications including anti-depressants which studies have shown that patients who have been on them for at least 5 years are finding out that they can’t get off their anti-depressants. Here is another article from the New York Times that also talks about patients not being able to get off their medication:
So with that said, I feel there is a large market out there for this drug and with Johnson and Johnson using this formula of medication and with its addictive traits, patients may become addicted to this as well. For now, the company has stated the drug will only be administered at a doctors office so we will see how that goes as time moves on if the drug even gets passed by the FDA.
I will give a further update on the FDA approval in the Trade Room once I hear about it.
For now, we have entered into JNJ calls for the March 15th expiration we entered on Friday the 15th of Feb for 2.52 per contract and we also had another trade for this weeks expo we made in the Trade Room earlier last week as soon as that news came out about this drug. Check the email alert, Trade Feed for further details on the trade!
The chart is currently in BREAKOUT/MOMENTUM and continues to climb. We will see what happens if it gets FDA approval. I may be adding more JNJ with a larger but lower risk trade depending on how it performs and if it gets FDA approva. I feel it could make a run for that 140-145/share area pretty quickly which is the next resistance area, then possibly making new highs. Again, we can’t predict what will happen, as far as the stock and prices go and if it gets the FDA approval, but I will be watching after it is either approved or denied and feel I can follow our Trade Plan on this stock for some quick day trades as well as some longer-term swing trades. We will see how it goes and play it day by day in the Trade Room.