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The opportunity right now is too big for you to ignore, so make sure you pull up INDP on your screen right now and dig into it.
I’ll start by sharing some of my thoughts on it…
This small-cap, NYC-based biotech company has been ripping higher this year. As of the close Friday, it’s up a whopping 62% year-to-date and has tested highs of as much as 164% as recently as September.
This is remarkable among early-stage biotech companies, which often see steady declines buoyed only by great news.
This speaks to the strong standing of INDP and investors’ confidence in its potentially breakthrough therapeutics. More on that later, but first, let me tell you why this stock has caught my attention right now.
Headline describing technical reasons we see a breakout in INDP
Apart from a few minor upswings, INDP has dipped from its September highs.
But that all changed last week. On Monday, the stock opened at $2.05, but by the close Friday, it had reached $2.50 — an incredible move more than 20% higher in just 5 days.
For comparison, the SPY had one of its best moves in ages, and it “only” gained a little more than 5% on the week.
These are the types of outsized moves I’m looking for.
The question is: Will INDP’s run continue?
We can’t know for sure, of course, but we can take a very educated guess.
Judging from what I see right now, I think last week’s 20% gain could just be the tip of the iceberg.
Normally, I would think this type of move in one week would be the “top” for a stock, but as I look at multiple timeframes, I am seeing lots of “GO” indicators from the algorithms I follow.
When I see good news for a small stock along with these types of technical indicators, I start to get on high alert.
All of this bodes very well, but you should still look at what’s powered INDP’s explosive growth not only this week, but also over the past year.
Great News About the Company’s Lead Candidate
The big impetus for INDP’s 2023 rise appears to be the start of a Phase 1 clinical trial for its lead candidate, Decoy20, in December 2022, and the first patient dosing in March 2023.
The company had been sitting on dozens of issued or granted patents based on tech developed by Indaptus founder and chief scientific officer, Dr. Michael Newman, at Indaptus’ predecessor company, Decoy Biosystems.
The rubber finally met the road in 2023, though, and investors are clearly liking what they’re seeing.
I looked into Decoy20 and found it unusually interesting, and it’s easy to see why investors see such promise in it.
Decoy20 was inspired by the observation that tumors sometimes regress in the presence of a bacterial infection. The theory is that the infection may activate the immune system in a way the cancer doesn’t.
But you obviously don’t want to infect cancer patients with bacteria that could cause them sustained sickness.
Enter Decoy20.
It contains “proprietary, attenuated and killed non-pathogenic gram-negative bacteria that have demonstrated broad anti-tumor and anti-viral activity.”
In layman’s speak, Decoy20 is a weakened bacteria that INDP theorizes will broadly activate the immune system while passing quickly from the system without making the patient too sick.
Theoretical immune reaction from Decoy20. Source: Indaptus website.
To date — and it’s still in the very early stages — the Phase 1 trial has borne that out.
Just last Tuesday, the company released interim data from the first group of patients to receive Decoy20. According to a company press release:
The interim data . . . demonstrated that as of August 31, 2023, each of the first cohort participants experienced transient activation of biomarkers associated with innate and/or adaptive immune responses, and generally expected transient adverse events, both associated with predicted rapid clearance of Decoy20.
That last part is important because the idea is for Decoy20 to be in and out — to cause a sustained immune response but not a sustained bacterial infection.
This lends weight to what has until now just been theory. The company presented the data to the Society for Immunotherapy of Cancer just this past Saturday. You can read more about it here.
This was the first big news INDP had since September, and it was certainly a blockbuster capable of powering last week’s rally.
If Decoy20 works the way the company thinks it will, it could be a game changer for a whole host of cancer treatments.
The potential is tremendous, and I’m not the only one who sees it…
Where Does INDP Go From Here?
One great indicator of the promise in these early-stage biotechs is what company insiders are up to.
This year, there have been no sales of stock by company insiders. That’s exactly what we look for.
At the same time, on August 17, insider Glen R. Anderson — who was already a 10% owner in the company — loaded up on 103,352 more shares at an average price of $2.09 for a total spend of $216,388.
That’s nothing to sneeze at for a company with a market cap of $20 million, and shows considerable insider confidence.
It looks like investment bank H.C. Wainwright is extremely bullish on INDP as well. They just reiterated their 12-month price target of $12.00 on Friday, following the positive Phase 1 trial news.
If they are right, that would be an eye-popping 380% gain from the Friday close.
Wrapping Up
Companies like INDP are real gems in otherwise uncertain markets. Their stock prices aren’t as tethered to broader market forces as your S&P 500 bigwigs.
The important thing is results: strong news about trial success can propel the stock much higher than any Fed pronouncement.
That’s why I think this is the one stock that deserves your eyes 👀 today…
Take a close look at the technical indicators I mentioned, study the broader chart, and review the company website.
The bottom line is to do your homework. I really like INDP, and I think it merits your attention, but your assessment and your risk tolerance may differ from mine.
I’ve been right on more of these “Bright Ideas 💡” than I can count, but I’ve been wrong on some too — usually due to timing.
I’ll touch base with any updates, but in the meantime, have a great trading week. It’s sure to be a wild one.
To Your Success,
Jeff Bishop
By the way… Text “RAGE” to 1-(888) 404-5747 to get all of my latest HOT STOCK ideas delivered right to your phone (make sure you put the 1 in!).
*This investment involves substantial risk. Please see full disclosure below, and detailed discussion of risks and atypical results.
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