Stock for Scopus BioPharma Inc. (SCPS) stabilized at 0.74 USD in the after-hours, last weekend. This followed after raging volatility in trade, along with a high volume of exchange. The stock price currently stands at 7.8% above the previous close, with a high number of traders betting on both long and short positions. The sheer trade volume is close to 11 million shares. At one point during the weekend, the SCPS penny stock saw a climb of 30.5%, indicating the scale of uncertainty in its trajectory.
Ukraine-Russia Crisis and Disruptions for SCPS
One significant reason as to why SCPS finds itself in the middle of a market hype is due to industry-wide disruptions brought about as a result of the Ukraine-Russia war. With global sanctions imposed upon Russia, leaders of the biopharmaceutical industry have been divided in their stance. Whilst some have called for a halt on investment within Russia, others maintain the critical need to ensure medical supplies. As a result, there is a high degree of uncertainty as to the progression of clinical trials and biomedical research in both countries. Supply chain disruptions bring further complications to the financial prospects of the industry as a whole. In late February, CEOs of major pharma companies collectively condemned the actions of Russia, in a call for decisive action. The letter spelled out the challenges the crisis holds for the progress of the industry, and for its critical functions.
Notice to Scopus by NASDAQ
Despite the panic surrounding biopharmaceutical stock, market reaction stands largely divided, as is evident by SCPS volatility. The last 5 days indicate alternating peaks, with a rapid rise on Friday. Although no official announcement has been released by Scopus, nor any direct report involving it, traders anticipate an upcoming swinger. Earlier in the month, NASDAQ handed over Scopus a notification of deficiency in terms of listing qualification. The lack of compliance related to the minimum market value of SCPS stock, which the company had failed to maintain. Failure to comply within 180 days could potentially trigger a delisting, which would be catastrophic for shareholders.
Conclusion
SCPS stock has been undergoing raging volatility, stabilizing at a 12% gain. Its sheer volume indicates the scale of market hype around the stock. With the disruptions brought about by the Ukraine crisis, and a recent NASDAQ deficiency notice, the market stands divided, regarding SCPS.