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      Alterity Therapeutics Ltd. (ATHE) Stock Skyrockets as Meme Stock Phenomenon Continues to Proliferate Stock Exchange - Stocks Telegraph

      By ST Staff

      Published on

      July 1, 2021

      11:20 AM UTC

      Alterity Therapeutics Ltd. (ATHE) Stock Skyrockets as Meme Stock Phenomenon Continues to Proliferate Stock Exchange - Stocks Telegraph

      Alterity Therapeutics Ltd. (ATHE) stock prices were down by 1.52% as of the market closing on June 30th 2021, bringing the price per share down to USD$1.30 at the end of the trading day. Subsequent pre-market fluctuations saw the stock skyrocket by a massive 66.92%, bringing it up to USD$2.17.

      EMA Guidance

      June 23rd, 2021 saw the company announce guidance it had received from the European Medicines Agency (EMA) in regard to key aspects of ATHE’s Phase 2 clinical trial for the treatment of Multiple System Atrophy (MSA) with its investigational drug ATH434. The company is actively preparing for the impending launch of the Phase 2 trial, which is scheduled to commence in the second half of 2021.

      About the EMA

      The EMA is an agency with jurisdiction in the European Union, with the responsibility of evaluating and supervising medicinal products. The agency plays a crucial role in the timely support of the sound development of high-quality, effective, and safe medicines for the treatment of respective patients. With their advice not being binding, the EMA influences improved trial designs to facilitate more robust and complete data in the evaluation of treatments.

      Scope of ATH434

      With MSA affecting a sizeable portion of the U.S population and the absence of any approved treatments for MSA, the scope of ATH434 is extensive. There is no regulatory precedence for defining clinical endpoints or guiding patient enrollment, thus requiring greater consideration in developing a trial design that is most suitable. Accordingly, the company has recruited clinical experts and global regulatory authorities for input. ATHE is also conducting BioMUSE, a natural history study designed to identify biomarkers and clinical endpoints most appropriate to capture efficacy signals in the Phase 2 study.

      Meme Stock Phenomenon

      Despite the promising development of the course of the ATH434 trial, the recent surge in ATHE’s stock price seems unmerited. Such drastic movement in the absence of news coverage or changes in fundamentals likely signals the company having been the latest target of the meme stock phenomenon that has resurged in the stock market. Driven by Reddit-based retail investors, underperforming companies with high short interest are selected for a coordinated short squeeze.

      Future Outlook for ATHE

      Armed with the recent surge in its equity value, ATHE finds itself with a fortuitous influx of resources to leverage in order to ensure more organic growth. Investors are hopeful that the company will manage to use the resources at its disposal to continue its trajectory of success.

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