Market Recap: Key Stock Movements in Biotechnology Sector – Fri, July 07, 2023

?? Today's key financial highlights from the biotech and pharmaceutical sector are as follows:

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?? Acasti Pharma Inc. (NASDAQ: ACST) announced a 1-for-6 reverse split of its shares effective from July 10, 2023, and saw shares drop by 13% to $0.52. Acasti Pharma Inc. is a late-stage specialty pharma company with drug delivery capability and technologies addressing rare and orphan diseases. Acasti’s lead clinical assets target underserved orphan diseases: (i) GTX-104, an intravenous infusion targeting Subarachnoid Hemorrhage (SAH), a rare and life-threatening medical emergency in which bleeding occurs over the surface of the brain in the subarachnoid space between the brain and skull; (ii) GTX-102, an oral formulation targeting Prurigo Nodularis (PN), a rare skin disease characterized by the development of multiple itchy nodules on the skin; and (iii) GTX-101, a transdermal patch targeting Postherpetic Neuralgia (PHN), a neuropathic pain condition that develops following an outbreak of shingles.

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?? Biodexa Pharmaceuticals PLC (NASDAQ: BDRX) was granted an exception by Nasdaq Stock Market LLC's Hearings Panel allowing the company time until July 18, 2023, to demonstrate compliance with the Minimum Bid Price Rule which resulted in shares falling by 7% closing at $4.35. Biodexa Pharmaceuticals PLC is a clinical stage biopharmaceutical company developing a pipeline of products aimed at primary and metastatic cancers of the brain. The company is developing MTX110, a direct delivery treatment for diffuse intrinsic pontine glioma, medulloblastomas, and glioblastoma multiforme. MTX110 is a water-soluble form of panobinostat free base, achieved through complexation with hydroxypropyl-β-cyclodextrin (HPBCD), that enables convection-enhanced delivery (CED) at potentially chemotherapeutic doses directly to the site of the tumour.

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?? Castle Biosciences Inc. (NASDAQ: CSTL) shares rose 53% to $20.30 following the announcement of improved metastatic risk prediction for SCC-HN patients using DecisionDx-SCC at an upcoming AHNS data presentation. In addition, a Medicare administrative contractor Novitas retracted a policy which previously did not cover Castle's DecisionDx cancer tests for SCC and melanoma. DecisionDx is a proprietary gene expression profile (GEP) test that helps healthcare providers predict the risk of metastasis in patients with uveal melanoma.

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?? Foghorn Therapeutics' (NASDAQ: FHTX) price target was reduced from $13 to $10 by a Morgan Stanley analyst who continued maintaining an Equal-Weight rating for this share which closed up by 13% at $7.69. Foghorn Therapeutics is pioneering the discovery and development of a new class of medicines targeting genetically determined dependencies within the chromatin regulatory system, which means they change how genes turn on and off.

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?? Owlet, Inc. (NYSE: OWLT) announced a 1-for-14 reverse stock split of its Class A common stock effective from 5:00 p.m. EDT, July 7, 2023 and saw shares rise 5% to $0.32. Owlet is a pioneer of smart baby monitoring and has recently announced clearance from the U.S. Food and Drug Administration (“FDA”) of BabySat?, Owlet’s first medical pulse-oximetry device featuring its advanced, wire-free sock design.

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?? Poseida Therapeutics (NASDAQ: PSTX) maintained its Buy rating from a BTIG analyst with the price target set at $14.00 causing shares to rise by 16% closing at $1.95. Poseida Therapeutics is advancing a new class of treatments for patients with cancer and rare diseases. Their pipeline includes allogeneic CAR-T cell therapy product candidates for both solid and liquid tumors as well as in vivo gene therapy product candidates.

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?? Renalytix PLC (NASDAQ: RNLX) shared clinical data showing the successful association of KidneyIntelX in vitro prognostic use with post-test measures leading to sustained improvement in type 2 diabetes and chronic kidney disease health over a span of 12 months. Shares rose by 11% to close at $3.19.

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?? TG Therapeutics, Inc. (NASDAQ: TGTX) shares increased following analyst praise at Cantor for strong Briumvi sales, a drug approved for multiple sclerosis. The analysts maintained an Overweight rating on the stock with a projected 2Q sale figure between $24 million and $32 million. Briumvi (ublituximab) is indicated for the treatment of relapsing forms of multiple sclerosis (MS), to include clinically isolated syndrome, relapsing-remitting disease, and active secondary progressive disease in adults. It is a monoclonal antibody that targets CD20 antigen on B-cells. Shares saw an 8% rise to $24.96.

? This update is provided for informational purposes only and should not be construed as investment advice. It is recommended to seek professional advice before making any investment decisions.

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?? Data courtesy: FinViz