Protalix Biotherapeutics Inc (NYSEAMERICAN: PLX) hasn’t had the best of times in the market as of late. In fact, the stock has been on a tear downward. Nonetheless, today, the stock is reversing and investors are smiling. While there has been no news, there’s good reason for the gains. Today, we’ll talk about:
- The update;
- what we’re seeing from PLX stock as a result; and
- what we’ll be watching for ahead.
Here’s What’s Happening With PLX
As mentioned above, Protalix BioTherapeutics is having a strong day in the market today, breaking the downward movement that we’ve seen on the stock. So, what’s the deal? Well, let’s start by looking at recent announcements.
In reality, much of the downward movement that we’ve seen from PLX can be blamed on earnings. In the most recent earnings report, the company generated negative revenue and earnings surprises of -91.71% and -150% respectively. Of course, the stock tanked and commenced the downtrend.
Since then, in mid-December, the company worked to redeem itself by providing an enrollment update with regard to three clinical studies. The first of these was the BRIDGE phase 3 trial of PRX-102 for the treatment of Fabry disease. The company also provided an update with regard to the BALANCE and BRIGHT phase 3 clinical trials. Both of these trials also focus on PRX-102 for the treatment of Fabry disease. In the release, the company said that the BRIDGE trial was completely enrolled and the BRIGHT and BALANCE trials were 90% and 70% enrolled respectively.
Now, the big question is, where are these gains coming from? Well, it has to do with everything above. First and foremost, earnings were bad, but the stock has priced in that poor earnings report by now, leading it down to support. Now that PLX is sitting on support, investors are seeing an opportunity, and with multiple late stage trials enrolled and nearly enrolled, there are quite a few catalystic events ahead of us. So, it seems as though following the bloodshed, investor excitement with regard to the potential surrounding these trials is starting to heat up yet again.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. When it comes to Protalix, the news has been mixed, but with negative news priced in and hopefully positive catalysts ahead, investor excitement is heading up. So, it’s not surprising to see that this excitement is resulting in gains. As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:45), PLX is trading at $0.36 per share after a gain of $0.047 per share or 15.05% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the iWatch Markets team will continue to keep a close eye on PLX. In particular, we’re interested in following the story surrounding the continued development of PRX-102 as the treatment will likely lead to multiple catalystic events ahead. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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