A Company That Once Saw Its Stock Trade Over $50 This Year Has Become A Penny Stock Overnight
It is not every day when a strong stock plummets to become a penny stock. When trading penny stocks, it involves trading any stock worth less than $5. It is recommended that when looking for penny stocks to buy, you should utilize news catalysts. Sometimes, however, a news catalyst can destroy the price of a stock.
A New Penny Stock: InflaRx (IFRX)
InflaRx NV (IFRX Stock Report) is a biotechnology company that develops monoclonal antibodies to treat deadly inflammatory diseases. Due to this being a biotech penny stock, news involving their pipeline can be extremely influential. The company’s shares have never traded below $10. This drastically changed after their recent latest announcement.
A Pile of Bad Penny Stock News
On May 23rd, InflaRx released their Q1 report. While it was not immediately impactful, it was definitely a spark to the sharp drop on June 5th. They reported a € 0.43 loss per share and although it beat projections, reporting a loss is never great. In addition, their research and development expenses were larger by € 2.2 million year-over-year. The increase in expenses mainly came due to their trials for IFX-1.
Because they increased spending on their IFX-1 program, there was definitely high hopes for it. However, they announced their drug IFX-1’s Phase 2b results and it was not pretty. They revealed that IFX-1 was not statically significant in its effectiveness compared to the placebo treatment. This penny stock news is what prompted IFRX stock to fall from $37.42 to $3.15 in a single day.
“We are disappointed that we were not able to demonstrate a significant signal on dose response for the treatment with IFX-1. While we are still analyzing additional data, we note that the trial demonstrated an unusually high placebo HiSCR rate at week 16.”Othmar Zenker, Chief Medical Officer of InflaRx.
Can IFRX stock ever recover? Drop us a line.