Driven by a focus on the cytokine TNF-like protein 1A (TL1A) and a strong patient database, Prometheus Biosciences, Inc. (NASDAQ:RXDX) advanced its lead drug PRA023 to treat ulcerative colitis and Crohn’s disease to a phase III trial. SanaCurrents issued a report in June 2022 forecasting the drug would succeed in phase III. In June 2022, Prometheus’ stock traded at $24.76 per share. By September 2, it climbed to $57.61 per share, a gain of 132%. Given the return SanaCurrents sold the majority of its shares but kept the remainder in a pullback portfolio.
When Prometheus reported the phase III data in December 2022, the stock rose to $119 per share, resulting in a blended catalyst return of $92 per share, or 373%. In April 2023, Merck agreed to buy Prometheus for $200 per share, approximately $10.8 million. A 10-month hold of Prometheus from the June 2022 SanaCurrents report would have yielded a return of 807%.