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Hemogenyx (HEMO) Shares Have Fallen Almost 37% This Year, Will They Keep Falling?

Simon Mugo trader
Updated 23 Feb 2021

Practice Stock Trading
Hemogenyx logo

Shares of biotech company Hemogenyx Pharmaceuticals PLC (LON: HEMO) are down 37% this year, and it seems like the downtrend is set to continue; how far can they fall?

The biotech company’s shares have been on a downtrend since the start of the year despite making several positive announcements, such as choosing a CDX clone antibody from its partnership with a major global pharmaceutical company.

Hemogenyx completed the development work on the CDX antibody in mid-January this year.

Last time we covered Hemogenyx, we pointed out that its shares were falling because none of its therapies and drug candidates had entered pre-clinal studies, but this could change if the chosen CDX antibody starts preclinical studies.

The biotech company is in a strong financial position after signing a financing deal with Mint Capital giving it access to a £60 million fund that it can draw from when needed to fund operations.

The current decline could be attributed to investor apathy towards the company, but its prospects remain quite solid given its various collaborations that could yield viable drug candidates in future.

Hemogenyx signed a master transnational agreement with the University of Pennsylvania on January 5, 2021, to hold clinical trials for drugs developed to treat various cancers, which could yield positive results for the biotech company.

The firm’s shares are trading near a support level, and it will be interesting to see if the level will hold, triggering an uptrend.

Hemogenyx share price.

Tradingview chart of Hemogenyx share price 23-02-2021

Hemogenyx shares are down 36.99% in 2021; how far can the shares fall in future?

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