Key points:
- RedHill Biopharma (RDHL) stock surged 25.44% today despite no news.
- A slew of buyers pushed RDHL stock higher, reversing Friday’s losses.
- In addition, RDHL has a solid drug candidate designated as an orphan drug.
The RedHill Biopharma Ltd (NASDAQ: RDHL) stock price surged 25.44% today despite the lack of news from the biotech company. Today’s rally erased most of Friday’s losses as buyers stepped up to overpower the sellers during the premarket session.
The biotech company’s shares fell on Friday after revealing that it would delay the publication of its financial results for the quarter that ended June 30, 2022, from September 23, 2022, to a new date of October 14, 2022.
Also read: The Best Biotech Penny Stocks Under $5 To Buy Right Now.
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Investors reacted badly to the postponement since such moves are usually associated with troubled companies that tend to run foul of regulators and are at significant risk of being delisted from the public markets.
However, investors had a change of heart over the weekend, as evidenced by today’s rally in Redhill Biopharma’s stock price. The stock had recouped all Friday’s losses and traded at new highs.
RedHill Biopharma told investors that the delay was caused by further analysis of the application of certain adjustments between gross and net sales and the related review by its independent accountants at its request.
Before Friday’s announcement, the last major news from the company was the orphan drug designation of its RHB-2041 drug candidate for the treatment of nontuberculous mycobacteria disease.
The orphan drug designation followed a positive recommendation from the European Medicines Agency’s Committee for Orphan Medicinal Products. The designation is awarded to treatments of a rare life-threatening or chronically debilitating condition.
RedHill Biopharma has multiple drugs targeting various diseases, including NTM, Chron’s, COVID-19 and RHB-107.
Therefore, RedHill Biopharma has multiple drugs that could net significant revenues if it passes clinical trials and is commercialised. However, first, the company has to release the pending Q2 financial results, followed closely by its Q3 results, since the current quarter is ending this week.
*This is not investment advice.
The RedHill Biopharma (RDHL) stock price chart.
The Redhill Biopharm stock price surged 25.44% to trade at $0.6228, rising from Friday’s closing price of $0.4965.