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4D Pharma Share Price Is Down 53.2% This Year. Could Its Shares Have Bottomed?

Updated: 6 Oct 2021

4d Pharma PLC (LON: DDDD) share price is down 53.2% since January as investors sold their shares in the live biotherapeutics firm and moved funds to better-performing sectors.

The biotech company released its interim financial report for the first six months of 2020. It reported a loss of £55.45 million, a significant increase compared to the £13.73 million loss booked in a similar period last year.

4d Pharma spent £9.9 million on research and development activities versus £12.1 million spent on similar activities during H1 2020.

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Other crucial milestones highlighted by the firm included the acquisition of Longevity Acquisition Corp, which saw its American Depositary Shares (ADSs) listed on the NASDAQ to trade under the ticker symbol LBPS.

The live biotherapeutics company raised $25 million during the merger in which Merck Sharpe & Danone, an existing shareholder, participated. The firm also got access to $14.8 million in cash that Longevity previously held.

4d Pharma had £20.7 million in cash and its equivalents as of 30 June 2021, leaving the company in a solid net cash position.

The biotech firm’s shares fell further after its earnings results but later bounced off the 55p support level, which could act as a significant support zone in the future. This bounce has made me ask whether the downtrend in 4d Pharma shares might finally be over.

Well, we cannot know for sure until after the fact, but the current support level has held since August 2020, making it a pretty solid level. However, the next few days and weeks will be crucial, and we will get to see whether the level shall hold or not.

Investors should keep in mind that 4D Pharma shares have broken below multiple support levels to reach their current price, and we cannot rule out further declines. Meanwhile, we are likely to get multiple retests of the level shortly.

*This is not investment advice.

4d Pharma share price.

IG chart of 4d Pharma share price 06-10-2021

4d Pharma shares are down 53.18% since the start of this year. Could they have recently bottomed?

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