ABIO stock has been on fire over the past two trading sessions, with a huge jump of 150%.
As far as biopharmaceutical companies are concerned, positive news of some variety can often send the stock soaring, and that is exactly what happened with little known ARCA Biopharma Inc (NASDAQ:ABIO) yesterday.
ARCA Biopharma is involved in the development of drugs that take a precision approach to treatment and tailors its drugs according to the genetic makeup of a patient. The company’s primary focus is on drugs for heart failure, and it was due to the publication of a key research paper by ARCA in a leading journal that the stock skyrocketed on the stock market yesterday.
ABIO Stock: The Rally
The Journal of American College of Cardiology is one of the leading journals on the subject in the United States and a research paper published in that journal is generally taken seriously. The research paper deals with the company’s flagship drug Gencaro that is meant for the treatment of atrial fibrillation in patients. More importantly, it uses the company’s signature treatment methodology that seeks to tailor drugs according to the genetic makeup of a patient.
After the news spread, ABIO stock entered a tearing rally and rose by an astonishing 98.64% in Wednesday’s session. It quickly became the highest gainer on the stock market all day, and needless to say, the publication of the research paper has had its effect on investors. The stock went up another 20% in Thursday’s session.
The astonishing rally over the past couple of trading sessions might have made the stock the biggest gainer in the market, but the actual situation with ABIO stock is quite grim. The stock has been on a downward spiral over the course of the last five years and has plunged by as much as 90% before its staggering rally yesterday.
At the start of the trading day on Wednesday, ABIO stock stood at $5.21 but ended the day on $10.28, and it is hardly surprising that there is a lot of positivity regarding ARCA Biopharma at this point in time. That being said, the company’s past should not be the yardstick for its future, since at the end of the day, it needs one drug to make it past the trials and if that happens, then the stock could be flying again.
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