We are looking specifically at biotechnology penny stocks today, and one, in particular, seems to be at the tail end of a massive surge.
This penny stock is affordable and popular right now. But why? Let’s find out!
Popular Penny Stocks: Adial Pharmaceuticals (NASDAQ:ADIL)
Last Wednesday, ADIL stock began an astronomical climb from $1.32 USD. The climb continued so much so that it reached $4.71 by Friday. That is almost a 350% growth on value. It has lost some of those gains since; no doubt short-term investors capitalized on the price hike.
At the time of writing, the ADIL penny stock is selling for $3.08 USD.
SAB
Adial Pharmaceuticals has actually had a quiet 2018. Or, rather, quiet until last week, when it released news that it had established a Scientific Advisory Board (SAB) to “explore advancement of the company’s leading drug candidate AD04 for the treatment of alcohol use disorder.”
It seems investors felt that news of a SAB forming was a positive sign and indicates that AD04 is making progress. AD04 is the company’s flagship drug developed to treat Alcohol Use Disorder and is in phase IIb clinical trials.
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What is Adial?
Adial is a biopharmaceutical company that focuses on developing drugs to treat addictive behaviors, with alcohol abuse at the forefront of its focus.
It is part of a new wave of addiction treatment drug companies in the wake of a nationwide opioid addiction crisis. Other similar firms include BioDelivery Sciences International (NASDAQ:BDSI) and Alkermes Plc (NASDAQ:ALKS).
Buy or Sell?
The recent surge is hard to understand. The ADIL penny stock has been down 70% on the year prior to this past week. But obviously, something is stirring in this company’s waters as such massive gains can’t be justified by a SAB formation, can they?
If the company is seeing positive results in its AD04 trials, it may be a significant consideration for your portfolio.
What do you think?
Featured Image: Depositphotos/© jamdesign
