Eiger Biopharmaceuticals (NASDAQ:EIGR), a company developing treatment for rare diseases, which often are reimbursed at a premium price, published a study on April 24, 2018, indicating the effectiveness of its drug, lonafarnib, to treat Hutchinson-Gilford Progeria Syndrome (HGPS). The disease is a rare and fatal genetic condition of accelerated aging in children.
In anticipation of the study results, SanaCurrents had forecast further growth of the HGPS program at EIGR on March 21, when shares traded at $9.38.
On May 16, 2018, Merck, a large global healthcare and drug manufacturing company, expanded its HGPS program with EIGR, contributing more capital and guidance for a phase III trial. EIGR shares increased to $16.38 on May 17, or 75% from SanaCurrents initial forecast.
What exactly did this mean for investors in EIGR shares? In less than 3 months, they netted at least $7,500 on a mere $10,000 investment after SanaCurrents’ initial forecast.