The stock of Athersys, Inc. (ATHX) gained significantly in the current market following news that the report which is Placebo-Controlled, its Clinical Trial of Evaluating MultiStem Cell Therapy for Acute Respiratory distress syndrome (ARDS) was issued in the journal Intensive Care Medicine. The stock gained 5.39% in value to reach $1.07. At the end of the last trading session, the stock was closed at $1.02. The average volume of stock traded in the trading session was 1.74 million in total.
Why has ATHX stock gained value today?
The company issued a report that the double-blind placebo controlled trial phase ½ of MUST-ARDS evaluates the safety and efficacy of MultiStemcell therapy in patients that have ARDS. The study showed that the treatment was well observed in the clinical trial and it showed no signs of allergy and serious adverse reactions. The study also showed that in the trial it was observed that higher median ICU-free and ventilator-free days in the entire MultiStem cell recipients than the placebo group with respect to the 28-days timespan. Other major developments were found in the study which showed a positive breakthrough in the research done by the company. The results of the study layered a foundation for the FDA to grant the Regenerative Medicine Advanced Therapy (RMAT) for the Athersys, Inc. (ATHX) ARDS program. This made the investors think seriously about the stock of Athersys and it saw an increase in the trading volume of the stock.
Financial Highlights of their 3rd quarter:
- As of 30th September 2021, the company announced revenue of $4.8 million. The revenue in the same quarter of 2020 was $0.01 million. This is a significant increase of 5,472%.
- The company announced the research and development expense of $17.2 million, the R&D expense in the same quarter of last year was $18.5 million.
- The net loss was reported to be $16.2 million. The net loss in the same quarter of 2020 was $22.5 million.
- As of 30th September 2021, the company had cash and cash equivalent equal to $49.67 million.
Conclusion:
After the news hit the market, the stock of the company skyrocketed in the Pre-market and gained value. When the treatment will roll out in the market, this is expected to bring a significant increase in the revenue for the company. So investors are expecting to get a solid increase in the capital gain of the stock.
