Breaking out of the flag

3 month flag setup and it's finally stepping out of that trend today. We should see it head to around $40, pullback a little bit, and then breakout for new all time highs. Alternatively, a more optimistic look would be "W" pattern and it breaks out when it hits $40 without the pullback.

Approval for Solithromycin is expected in mid-2016. At $1.6B market cap, it is still very undervalued for what is one of the most important antibiotics that will be approved this decade. Peak sales estimates have been up to $2B/year worldwide, and will likely be more if other indications are added. This why I believe management will not consider a buyout until after the NDA has been submitted later this year and any offer will need to be at least $125 ($5.5B) to $200 ($8.6B) range to match the sales/pipeline potential.