Despite recovering in the last three months, Achaogen (AKAO) shares are still down sharply for the year. Year-to-date, the stock has fallen more than 36%. AKAO ended Q2 with $70 million in cash on its balance sheet. The market is significantly undervaluing AKAO’s pipeline. The problem for AKAO is lack of catalysts this year. The company reports top-line data from its Phase 3 trial CARE in the first half of 2017. In the first quarter of 2017, the company will also report top-line data from its EPIC trial. While AKAO looks undervalued at current levels, the market sentiment has turned negative on the biotech in the last few days following the comments from Presidential candidate Hillary Clinton and therefore I would recommend keeping a watch on AKAO rather than entering at current levels.