Juno Therapeutics (Nasdaq: JUNO), a company specializing in immunotherapy combined with chemotherapy and conventional cancer treatments,  was rallying in early trading today, just five days after a massive 30 plus percent drop in price after two unexpected deaths occurred in a critical Phase II trial for end stage leukemia patients as we discussed in this week’s issue of Breakthrough Tech Weekly.  The rebound is the result of the FDA allowing Juno to restart the trial by changing the chemotherapy agent to be used in conjunction with the study drug JCAR015. 

Our long term view on Juno remains unchanged by this sequence of events. Juno is being changed back to a ‘buy’, but remains a high risk stock which should be owned as part of a diversified portfolio.   The company has a large stable of drug prospects and has multiple ongoing clinical trials. This has positive and negative aspects. For one, it is plausible that another trial could deliver bad results and the stock could tank again. On the positive side, any of its multiple trials could strike gold and the stock could rally.   The key price area which will tell the tale of the tape is what happens when the stock nears the $40 area.  

Disclosure:  Dr. Duarte owns shares in Juno.