Key points:
- The Ayala Pharmaceuticals (AYLA) stock price surged 87.4% today.
- The rally could be traced to clinical trial results released on July 5.
- So should you buy AYLA stock? Read on to find out.
Despite not releasing any significant announcements, the Ayala Pharmaceuticals Inc (NASDAQ: AYLA) stock price surged 87.4% today. However, a quick look at its last announcement clarifies what today’s rally was all about.
The pharmaceutical company announced on July 5, 2022, the interim data from part A of its Phase 2/3 RINGSIDE clinical trial evaluating its AL102 drug candidate in desmoid tumours. The company noted that AL102 demonstrated substantial anti-tumour activity in the early trial days.
Also read: Five Best Pharmaceutical Stocks To Watch In 2022.
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However, the market reaction was non-existent as AYALA shares had kept falling until today when they reversed course and headed higher. A cursory glance at the company’s Twitter handle shows that it tweeted about the initial study results yesterday.
The tweet from Ayala Pharma reignited investor interest in the company and its AL102 desmoid tumour cancer, triggering today’s premarket rally. Investors realised they had missed the initial; hence, they piled into the stock en masse.
Over 7.36 million AYLA shares had changed hands at writing as buyers flocked to the stock pushing its price higher. However, nobody knows how long today’s rally will last and if it will translate into a sustained rally.
Still, it was nice to see AYLA stock trading above the crucial $1 mark set by the SEC as the cutoff point for stocks listed on the primary U.S. stock exchanges.
Gary Gordon, M.D., PhD, Ayala’s Chief Medical Officer, commented: “RINGSIDE is the first study to investigate AL102 exclusively in desmoid tumor patients, and it has been designed to evaluate a range of different doses and dose schedules. Successful management of this disease will likely require chronic treatment, and one of the key goals of our development program is to understand the optimal balance between efficacy, safety, and patient acceptability. We are encouraged by the early, but very promising efficacy data and emerging favorable side effect profile for AL102 reported in these interim results.”
Should you buy AYLA shares? The short answer is no. it is better to wait for the stock to pull back if you missed the initial rally.
*This is not investment advice. Always do your due diligence before making investment decisions.
Ayala Pharmaceuticals stock price.
The Ayala Pharmaceuticals stock price surged 87.35% to trade at $1.63, rising from Monday’s closing price of $0.87.