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Skinbiotherapeutics (SBTX) Shares Plunged 16.2%. Here’s Why.

Simon Mugo trader
Updated 31 Aug 2022

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Key points:

  • The Skinbiotherapeutics share price plunged 16.2% despite phase results.
  • Investors ignored the positive trial results while focusing on weak sales.
  • Is there hope for the company’s AxisBiotix-PS product? Read on to find out.

The Skinbiotherapeutics PLC (LON: SBTX) share price plunged 16.2% despite the company announcing positive results from phase one of its oral health programme. The firm revealed that the study had indicated that specific bacterial (probiotic) strains or lysates could be used to prevent gum disease.

Investors ignored the positive results of the phase study, which will now pave the way for further clinical studies to establish the appropriate dosages and combinations of the probiotic strains in creating a robust product to fight gum disease in adults and older adults over the age of 65 years.

Also read: Best Healthcare Stocks To Buy Right Now.

The company noted that the potential market for products that prevent periodontal (gum) disease is approximately $1.1 billion. Still, investors remained largely unimpressed, maybe because many established companies already have trusted products in the same industry.

Skinbiotherapeutics also revealed that it generated £75,000 in revenues during the whole trading year to 30 June 2022 from the sales of its AxisBiotix-PS product, which was significantly lower than the markets’ initial expectations.

The weak sales of AxisBiotix-PS, a product billed as a game-changer for the company, was the main trigger behind today’s decline as investors adjusted their expectations of the product’s sales in the future.

However, Skinbiotherapeutics is not ready to give up on AxisBiotix-PS and is looking at multiple ways to market the product better. The company is looking for a global marketing company to partner with in its efforts to launch and distribute the product globally.

Therefore, there is still hope for AxisBiotix-PS if the company can successfully out-license it to a global distribution company to market it to a broader audience. Luckily for the company, the product has an extremely high customer retention rate of over 85%, which shows that customers who buy it like it and are likely to keep buying and using it month over month.

So, should you buy OptiBiotix shares? The short answer is it depends on your investment goals. However, SBTX shares look attractive since they are trading at a crucial support level.

*This is not investment advice. Always do your due diligence before making investment decisions.

Skinbiotherapeutics (SBTX) stock price chart.

Skinbiotherapeutics share price 31-08-2022
Source: IG

The Skinbiotherapeutics share price plunged 16.18%to trade at 18.23p, falling from Tuesday’s closing price of 21.75p.

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