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
ValiRx Plc (LON: VAL) share price rallied 91.4% over the past month as investors reacted to some of its positive milestones, including the start of an evaluation agreement with an unnamed London university.
The clinical-stage drug development company’s latest rally started on September 16, 2021, when it announced its collaboration agreement with a London university to investigate a novel technology to treat breast cancer.
Investors seemed wildly impressed by the agreement, which triggered a sharp parabolic rally over the next few days up to a high of 43.50p on September 30, 2021, from the closing price of 21.50p on September 15, 2021.
This initial rally was quickly followed by a downtrend lasting from September 30, 2021, to October 6, 2021. The second rally ensued from October 7, 2021, and has seen ValiRx shares rally back up to their recent highs today.
ValiRx shares were also driven by the company’s investor presentation held on September 28, 2021, which highlighted the company’s long-term value proposition, triggering renewed investor interest in the company.
While the company still does not have a commercially viable drug, it has made significant progress developing its current drug candidates.
For example, its VAL401 lung/pancreatic cancer drug candidate is in phase II trials. In contrast, its VAL 201 prostate cancer drug candidate is in phase I clinical trials, and its VAL301 endometriosis drug is in pre-clinical trials.
Lastly, the company’s recent partnership with a London university has its triple-negative breast cancer drug under evaluation, after which ValiRx could license the technology under pre-agreed terms.
Therefore, it is evident that ValiRx’s prospects appear pretty promising, which has fueled the latest rally in its stock price. However, from a technical perspective, I wouldn’t buy ValiRx shares since they are pretty over-extended. I would wait for a significant pullback before jumping in.
*This is not investment advice. Always do your due diligence before making investment decisions.
ValiRx share price.
Here’s why ValiRx shares have risen 91.43% over the past month. Will the rally continue?
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