THIS WEEK, the DDDD share price caught many investors by surprise as it jumped to a multi-month high of 75.4p. This was its best performance in months, and it pushed it about 213% from its lowest level this year. While the price has retraced quite slightly, it remains 129% above the YTD low, bringing its market value to about 100 million pounds.
4D Pharma is a relatively small biopharmaceutical company that researches and develops therapies. Like most companies in the industry, the firm spends millions of dollars hoping that its therapies will be successful in the long term. Unfortunately, most drugs that go to trial in most countries don’t make it. 4D is currently researching multiple drugs in the immuno-oncology, CNS, autoimmune, gastrointestinal, and respiratory businesses.
Its immuno-oncology products have made some successes and are currently moving in the second stage of the trial. Its CNS products, on the other hand, are mostly in their development phase and are expected to move to phase 1 of trials in the coming months. Meanwhile, its gastrointestinal drugs are in the final stages of trials.
The DDDD share price jumped sharply on Wednesday after the company announced strong results of its phase 1/11 study of its cancer treatment drug. The firm said that the drug did well when used in combination with Keytruda, a drug made by Merck.
So, what next for the 4D Pharma share price? While the trial results were positive, it is still too early to tell whether the stock will maintain a bullish trend. Several biopharma stocks jump after a strong announcement, only to retreat after later disappointments. Another risk is that 4D is a thinly traded company, which could have some liquidity challenges.
The DDDD stock price was in a slow recovery process even before it announced its trial results. While it is hard to verify, this could signify that some insiders were accumulating before the statement. This also explains why it has retreated slightly from its weekly high.
A closer look shows that it moved slightly above the 38.2% Fibonacci retracement level and is attempting to retest the 23.6% point. It is also trying to fill the gap that was created on Wednesday. While this is a risky stock, I can’t rule out a situation where it retests this week’s high at 77.3p. If this happens, it will signal that more buyers in the market will be keen to push it to the 61.8% retracement at 104p.
This post was last modified on %s = human-readable time difference 09:37