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.
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.
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?
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