The biotech market is getting hotter by the minute, if you are not investing in biotechnology stocks these days then you are missing out on huge returns! Just this morning two biotech companies dominated the top stock gainers list. Allena Pharmaceuticals, Inc. (NASDAQ: ALNA) and Catalyst Biosciences, Inc. (NASDAQ: CBIO) have always been exceptional companies yet today they are breaking new records and gaining well-deserved momentum. Resulting in major run ups for both stocks!
#1 Top Stock Gainers : ALNA
With almost a 190% increase, Allena Pharmaceuticals, Inc. (NASDAQ: ALNA) has been making headlines this morning. This major run up was caused by the company announcing the termination of its agreement with B. Riley Securities, Inc.
ALNA is a biotechnology company that works on discovering and developing enzyme therapeutics to treat patients in the US from kidney disorders as well as rare and severe metabolic disorders. Meanwhile, B.Riley is a financial services provider that focuses on fulfilling any enterprise’s financial need at all stages of the business life cycle.
Last December, the companies entered into at market issuance sales agreement (ATM agreement). Since then and till the 27th of June, B. Riley was able to issue and sell at-the-market offering shares of ALNA’s common stock with a par value $.001 per share.
On 28th of June Allena filed an 8-K with the SEC to announce the immediate termination of its ATM agreement with B.Riley.
Investors are bullish on these news, given that such an event usually leads to a rapid increase in the stock’s value. You missed out on ALNA? Get our free alerts & find out the top stocks gainers before anyone else!
Following the termination of the agreement, the stock witnessed a major 186% run up to be currently traded at $.3172. The stock has a newly formed resistance at .3932 with a strong support line near .1073.
With any major increase in a stock’s value, the RSI always tends to also skyrocket. With that in mind the RSI of ALNA hit 91 in the beginning of the trading day, however at the moment it stands at 70 indicating that the stock is overbought. Meanwhile, the MACD is on a recent bullish crossover and showing no signs of another crossover anytime soon. On the other hand, accumulation has been trending downwards.
The run-up might not last for long, however, the stock has great potential moving forward so even if it dipped for a while, there’s a huge possibility that it would regain its momentum and trade at new highs. Our 100% free alerts will make sure you don’t miss the next run-up.
#2 Top Stock Gainers: CBIO
Secondly, among the top stock gainers, today is Catalyst Biosciences, Inc. (NASDAQ: CBIO) with over a 15% increase in stock value. The biotech company is on investors’ radar today as it announced its intent to distribute cash to its shareholders.
As a biotechnology company, CBIO works on developing and commercializing protease therapeutics. In order to fulfill unmet medical needs of complement and coagulation systems disorders.
On June 29, the biotech company’s board of directors reported that they are planning on distributing cash to their stockholders through one or more payments as soon as practicable. Currently, CBIO expects that the total cash amount to be distributed could be up to $65 million.
On that note the CEO of the company – Nassim Usman, Ph.D. – stated that
This follows our recently completed sale of a portion of our product portfolio for up to $60 million in cash, $55 million upfront and $5 million in a 12-month hold-back, after a thorough and competitive process with the assistance of independent financial and legal advisors.
He also went on to add that the company has managed to aggressively cut costs through various routes such as reducing headcount, terminating R&D activities, and monetizing lab equipment.
The initial distribution is expected to be after the evolution of the potential liability and expenses associated with the ongoing Delaware Court of Chancery stockholder litigation and the annual stockholders meeting initiated by a CBIO stockholder.
It is also worth noting that the company intends to distribute all the available cash to its stockholders after fulfilling all its obligations and contingent liabilities.
Following its major run-up, CBIO stock is currently trading at $1.72 with resistance at 1.8 and primary support around 1.3 as well as a secondary one near 1.09.
Meanwhile, RSI stands at 62 indicating that the stock might be on its way to being overbought but at the moment that’s not a bad sign. Although MACD is on a recent bullish crossover, accumulation has been going steady with no real change in the charts. But no change is a good sign when it comes to the stock market. Check out our alerts to learn which stocks are trending upwards in real time!
Both ALNA and CBIO are giving the stock market something to talk about today, with promises of cash and added stock value. What can go wrong? Keeping in mind that the biotechnology industry as a whole is showing great potential these days, these stocks can go even higher in the future.
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As always, good luck to all (except the shorts)!
Disclosure: We have no business relationship with any company whose stock is mentioned in this video. Viral Stocks is not an investment advisor and this video does not provide investment advice. Always do your own research, make your own investment decisions, or consult with your nearest financial advisor. This video is not a solicitation or recommendation to buy, sell, or hold securities. This video is our opinion and is meant for informational and educational purposes only and does not provide investment advice. Past performance is not indicative of future performance.