ONTX shares have skyrocketed over 250% so far this year. What’s coming up next?
Shares of Onconova Therapeutics (ONTX) have been on a skywalk. The biopharmaceutical has recorded a jump of over 250%+ in its stock since the start of 2021. There have been some bulls that are pushing the penny stock as it moves towards the $2 per share.
Let’s see what’s all this bullish sentiment is about and what’s happening around?
The company recently raised $28.75 million through a stock offering, which has been the main reason behind the bullish sentiment, lately. The biotech sold 28.75 million shares at a per-share price of $1.
The company expects to use the gross proceeds from the stock sale to strengthen its balance sheet and provide more cash for its cancer-treatment development programs.
Early this year, the company signed a definitive purchase agreement with accredited institutional investors to sell 19.55 million of its common stock in a registered direct offering. The company sold its shares at a purchase price of $0.445 per share. The overall proceeds from the offering are $8.7 million.
The company is moving closer to its objective one by one. All this fundraising has been to keep the business running smoothly and support its cancer treatment development program. In that premise, the company obtained the FDA approval to begin Phase 1 study of its proprietary, differentiated, first-in-class multi-kinase inhibitor, ON 123300.
The company will study the efficacy of ON 123300 under its Investigational New Drug application (IND). The trial will enroll patients with relapsed/refractory advanced cancer, also including patients with HR+ HER2- metastatic breast cancer.
This is a great achievement for Onconova Therapeutics to set its first step on the right track to get things going. The CEO of the company, Steven M. Fruchtman said that they are advancing the process to secure Institutional Review Board approval and believe that they will enroll the first patient during the first half of 2021.
The 52-week high for Onconova Therapeutics (ONTX) has been $1.80 per share. As we write this, ONTX shares trade around $1.63, up by 8.63%. Considering the bullish sentiment, things have been good for ONTX since the FDA approval for ON 123300. But, the real value of just lies below $1. For now, it doesn’t seem to cross $2 but if the company gets a breakthrough in the initial phase of its cancer study, ONTX can rally past $2.