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Shares of Hemogenyx Pharmaceuticals PLC (LON: HEMO) rose 4.84% after bouncing off a major support level at the start of the week, indicating that the level might hold, triggering further gains.
The biotech company has not made any major announcements since we last covered it in late February as it was headed towards the current support level. We wondered whether the level would hold given the bearish investor sentiment at the time, but the shares have since bounced off the support level twice.
It appears that bullish traders were willing to step in and defend the level to stop any further declines twice, which is a strong indication that the level could hold in the future. The lack of major news from the company has hampered the recovery of its share price, which is yet to launch a sustained rally.
Hemogenyx recently announced that its financial controller, who also doubles up as its company secretary, had purchased additional shares, bringing his holdings in the company to 1.6 million shares, equating to 0.36% of its share capital.
The biotech firm’s fundamentals haven’t changed since we covered it. The company is yet to confirm whether its partner, a leading pharmaceutical company, has agreed to license the technology behind the CD antibody developed in mid-January.
The unidentified big pharma company had three months to license the technology allowing Hemogenyx to continue investigating the antibody in readiness for potential clinical trials.
A positive development regarding the CDX antibody could be what the company’s shares need to launch a full-scale rally and claw back some of its recent losses, given that its shares are down 34% so far this year.
Hemogenyx share price.
Hemogenyx shares are up 4.84% after bouncing off support on Monday. Can the level hold triggering a rally?
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