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?
4d Pharma shares are traded on the London stock exchange's AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are 4d Pharma shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies
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