Shares of Redx Pharma PLC (LON: REDX) spiked 27.6% higher despite the drug discovery company not making any significant announcements today.
Today’s rally could then be attributed to a delayed response to yesterday’s news about the results of its phase I trial of its RXC004 monotherapy study at the upcoming European Society for Medical Oncology (ESMO) Congress set for 16-21 September 2021.
Investors seem to be expecting positive results at the Congress,w which kicks of on Thursday this week.
RXC004 is Redx Pharma’s lead drug candidate and is described as a potent, orally active porcupine inhibitor being developed as a targeted therapy for cancers triggered by Wnt-ligand.
Investors expectations of positive phase I study results are based on the fact that the biopharma company has already set out a plan for its phase II study.
Redx Pharma intends to use the 2mg dose during the planned phase 2 monotherapy, proof of concept clinical trials, scheduled to start in H2 2021.
However, I’m afraid the current rally could have already priced in the positive results to be announced starting Thursday and the start of phase 2 clinical trials.
Therefore, investors may be best served to wait for a pullback before opening new bullish trades on the stock, which has now formed a parabolic rally.
*This is not investment advice.
Redx Pharma share price.
Redx Pharma shares spiked 27.58% higher to trade at 123.75p, rising from Monday’s closing price of 97p.
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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