Key points:
- Corbus Pharma stock surged 36% despite the lack of announcements.
- Retail investors’ interest in the company remains high hence the rally.
- The biotech firm’s prospects are promising, but there are headwinds.
The Corbus Pharmaceuticals Holdings Inc (NASDAQ: CRBP) stock price surged 35.98% despite the lack of announcements from the biotech company, whose main objective is to develop innovative treatments for fibrotic, inflammatory, cancer and metabolic releases.
The lack of news releases from the company did not stop investors from buying CRBP shares since over 11.7 million shares had changed hands at the time of writing. In addition, retail investor interest in the stock has recently been extremely high as the stock alternates between gains and losses.
Also read: The Best Biotech Penny Stocks Under $5 To Buy Right Now.
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Corbus Pharma has a unique approach to developing new drugs based on small molecules that activate or inhibit the body’s endocannabinoid system and monoclonal antibodies that target integrins to inhibit activation of TGFβ.
In my last article on the company, I noted that its management team wanted to perform a reverse stock split to bring its share price in line with the Nasdaq listing requirement of $1 per share. As a result, retail investors may be looking to capitalise on the higher share prices resulting from the reverse stock split.
The biotech company’s drug pipeline consists of four drugs, one in phase 3 clinical trials. The drug is known as Lenabusum, treats dermatomyositis/lupus, and is a CB2 Agonist. There is hope that the treatment may be commercialised soon.
Corbus’s other treatments are all in preclinical trial stages, including its CRB-913 drug candidate, which has shown effectiveness in reducing obesity in mice and could prove effective in helping people lose weight given the current global obesity pandemic.
The biotech company’s CRB-601 and CRB-602 drug candidates target solid tumours and are in preclinical trial stages. Overall, Corbus Pharma’s prospects are promising, which might explain investors’ significant interest in the stock.
So, would I buy Corbus Pharma stock? Unfortunately, the short answer is no. Firstly, the company is yet to execute the reverse stock split that would bring its shares in line with Nasdaq requirements. Furthermore, reverse slits tend to be followed by pullbacks, which would present an excellent buying opportunity.
*This is not investment advice.
Corbus Pharma stock price.
The Corbus Pharma (CRBP) stock price surged 35.98% to trade at $0.15, rising from Wednesday’s closing price of $0.112.