Shares of 4d Pharma PLC (LON: DDDD) are up 16.42% over the past three days as buyers stepped up despite the biotech company announcing the voluntary ending of phase 2 clinical trials for coronavirus treatment.
Interestingly, 4d Pharma shares surged higher following the termination of the COVID-19 trials as the company now focuses on its promising irritable bowel syndrome treatments.
It appears investors did not care much for the COVID-19 cure, given the rising global vaccination rates and the declining hospitalisation rates among COVID-19 patients.
4d Pharma is now entirely focused on its LBP drug pipeline. Furthermore, investors seem happy with its new strategy given the latest 3-day rally that has pushed the biotech firm’s shares above the resistance level shown below.
Investors were also pleased to learn that the company had completed enrollment for Part A of its Phase 1/2 clinical trial of MRx-4DP0004 in patients with partly controlled asthma. In addition, the firm is moving full-speed ahead with its other projects now that it has closed the COVID-19 trials.
4d Pharma is a pioneer in developing live biotherapeutics based on the human microbiome. Still, many are waiting for its drug candidates to complete clinical trials and gain regulatory approval to launch a new class of medicines.
Alex Stevenson, 4d Pharma’s Chief Scientific Officer, said: “The completion of enrollment in Part A of 4D pharma's asthma study is an important milestone for this program. This is expected to provide further validation of the favourable safety profile of LBPs as a novel class of drug across a wide range of indications, including respiratory disease.”
As a trader, the recent rally and break above a crucial resistance level is a vital sign that a bull trend could have begun. However, I would wait for a pullback and retest of the recently broken resistance level before opening any new bullish positions.
*This is not investment advice.
4d Pharma share price.
4d Pharma shares are up 16.42% to trade at 102.8p, having risen from a low of 88.3p. So how can they go?
Should you invest in 4d Pharma shares?
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