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4D Pharma Shares Surged 9.87% Today, Should You Buy?

Simon Mugo trader
Updated 19 Nov 2020

Practice Stock Trading
4D Pharma logo

Shares of 4d Pharma PLC (LON: DDDD) surged 9.87% today despite the lack of major news releases from the live biotherapeutics company, which continues to trade sideways this week.

The company had a series of positive news in the past few months that led its stock to trade at a high of 182p in early October before shedding over half of its gains since then to trade in the 90s as of today.

4D Pharma has had a long history of burning through its cash reserves without generating a profit since its IPO on London’s AIM market in 2014, but the company’s future prospects look much brighter now.

The company managed to partner with Merck, a tier-1 pharmaceutical company to conduct a clinical trial for its MRx0518 drug candidate combined with Merck’s Keytruda cancer treatment to target solid tumours with promising phase I/II results.

4D Pharma has 15 other drug candidates targeting diseases such as cancers, irritable bowel syndrome, autism, Chrohn’s disease, and COVID-19 among others. The fact that these drugs are being developed using novel technologies indicates that the firm could have a strong edge against its peers given the many patents held by the company.

Investors are anticipating the dual-listing of 4D Pharma on the NASDAQ in January, which is set to generate an initial $15 million in cash for the company while creating the opportunity to raise more capital from American investors.

4D Pharma appears like a great bargain at current prices despite the fact that it is not yet profitable.*

*This is not investment advice.

4D Pharma share price

Tradingview chart of 4D Pharma share price 19112020

4D Pharma shares surged 9.87% today to trade at 102.4p having rallied from Wednesday’s closing price of 93.2p.

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Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading