The Synairgen share price collapsed by over 92 percent this week, leaving many questioning what went wrong. For instance, on February 18, 2022, the share prices were as high as 179 GBx, and today, four days later, they are trading at less than 25 GBx.
In 2021, Synairgen share price increased by 31 percent. However, this gain has been erased by the recent collapse of Synairgen’s share price by 92 percent. The collapse is a result of their SNG001 drug trial failing to yield expected results.
Like many pharmaceutical companies working during the pandemic, Synairgen Biotech was among the leading researchers engaged in finding vaccines and cures for the Covid-19. Their solution was revolutionary, and unlike other biotech companies, their SNG001 drug was being administered through inhalation.
The science behind the drug was also easy to understand, which made it easy for investors to relate with the company. The company had previously carried out phase I and phase II successfully. They were in the process of phase III, which would have put them one step closer to approval.
Unfortunately, phase III did not meet its primary or key secondary efficacy endpoints. This is after it was found that placebo and SNG001 had no difference when administered to patients. This release of this information triggered the current drop in prices of Synairgen’s share prices.
Synairgen technical analysis has been complicated by the recent 92 percent drop in prices. However, there is still a lot we can deduce from by analyzing the daily chart. Before the drop, Synairgen was trading at above 165 GBx. Currently, the prices are trading below 25GBx. This price is still high than what the prices were in pre-pandemic levels, where Synairgen was trading at 5 GBx.
In reference to the daily chart, I expect the prices to continue with a drop in the next coming days. I also expect the prices to continue setting new lows as the news of phase III failure continue to unravel.
With the recent 92 percent drop in Synairgen share prices, it would not be a prudent investment in the company. Based on fundamentals and technical analysis, I would not recommend investing in Synairgen.
This post was last modified on %s = human-readable time difference 12:32