Cyclo Therapeutics (NASDAQ: CYTH) opened on Monday with a loss of 1.68%, losing premarket gains of 10% following promising news from the FDA. The clinical-stage biotech company dedicated to life-changing medicines announced earlier today that its study may move on from its initial investigational new drug application to a Phase 2 study of Trappsol Cycle – a treatment for early Alzheimers.
The treatment has been shown in numerous studies to effectively manage the transportation of cholesterol, which is associated with many of the risk factors of Alzheimer’s. Cyclo is also currently working on a long-term study for the treatment of Niemann-Pick disease Type C1 – a rare, progressive genetic disorder.
Michael Lisjak, Chief Regulatory Officer and Senior Vice President stated:
“We are incredibly pleased with the interaction we’ve had with the FDA throughout this initial IND process, culminating in their decision for our proposed Phase 2 program to proceed. We look forward to commencing the study and the potential to address the need for an effective treatment option for all those affected by this devastating disease”
The news sparked premarket momentum of around 10%, before dissipating with Monday’s opening bell. CYTH stock is showing an annual gain of just over 12%, trading at a current price of $4.78.
Is Now a Good Time to Invest In Cyclo Shares?
Healthcare stocks, including Cyclo shares, saw a wave of investors buy their shares during the pandemic. Governments also pumped money into the companies in an attempt to speed up the vaccine process. But, what happens now vaccines have been approved and the pandemic is becoming less prominent? Should we still invest in coronavirus-focused healthcare stocks? Or should we look to firms tackling other areas? Here are the best healthcare stocks to buy now…