Aptinyx Inc. (APTX) stock prices were up by a massive 28.7134% shortly after market trading commenced on June 11th, 2021, bringing the price per share up to USD$4.1317 early on in the trading day.
Fortuitous Gains
This surge in the value of the company’s equity comes despite a lack of significant news or recent developments that would help explain the overnight skyrocketing of the stock. With the meme stock phenomenon that rule the stock market this past week, it is possible the movement stems from a coordinated effort by retail investors to execute a short squeeze.
Solid Liquidity Position
In their financial reports for the first quarter of the fiscal year 2021, APTX reported a comfortable liquidity position with USD$146.8 million in cash and cash equivalents as of March 31st, 2021. This is an increase from the USD$141 million reported as of December 31st, 2020. With its current liquidity position, APTX anticipates its operations being funded through to 2023.
Collaboration Revenue
Revenue for the first quarter of the fiscal year 2021 came in at USD1 million, an improvement on the USD$0.8 million reported for the same time period of the prior fiscal year. The company’s revenue was generated from its research collaboration agreement with Allergan, a subsidiary of AbbVie. The funding of the company’s operations does not rely on the generation of these revenues.
R&D Expenses
Research and development costs were reported at USD$10.3 million for the first quarter of the fiscal year 2021, down from the USD$11.1 million reported for the same time period of the prior fiscal year. The year-over-year decrease is largely attributable to the completion of the exploratory Phase 2 study of NYX-783 in PTSD, having occurred in October 2020. Also contributing to the difference was the temporary suspension of enrollment in the exploratory Phase 2 study of NYX-458 in cognitive impairment, which went on to recommence in March 2021. The decrease was partially offset by the increasing of costs associated with the recommencement of the company’s two Phase 2b studies of NYX-2925 in chronic pain.
Future Outlook for APTX
Armed with a solid liquidity position that will see the company through the next several quarters, APTX is poised to push for the commercialization of its pipeline candidates. The company is keen to continue its trajectory of success and capitalize on the recent gains in equity value to ensure further organic growth. Current and potential investors are hopeful that management will continue to leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.
