Immunic, Inc. (IMUX) traded 30.7 million shares on Wednesday, an overwhelming number compared to its daily average of close to 1 million. The spike in volume was accompanied by a little move in the stock price, up 9 cents (+6.16 percent).
Investors reacted to news that the emerging biotech reported data from its phase 2b trial for ALDOSE-1, vidofludimus calcium (IMU-838), in patients with moderate-to-severe ulcerative colitis (UC). (1) Ulcerative colitis is a chronic inflammatory bowel disease that affects the colon and rectum. It causes inflammation and ulcers in the lining of the colon, leading to symptoms such as abdominal pain, diarrhea, and rectal bleeding. The ulcerative colitis market is expected to grow at a compound annual growth rate (CAGR) of 7.3% with a projected value of $10.5 billion by 2027.
Tuesday’s response put IMUX to the edge of a descending trendline. The last time the speculative company busted out of a downtrend, the stock rallied from about $1.20 to nearly $3 in about 10-weeks. Of course, past performance is no guarantee of future performance.
If the IMIX can close above $1.73, it would be north of its current downtrend and give it a shot to move as high as its 20-day moving average of $2.95. On the downside, a close below $1.40 might be the first exit point to minimize losses. As we type, Immunic last traded at $1.55. In our opinion, IMUX has a solid reward to risk ratio in the intermediate term.
Remember, short-term trading, especially with speculative biotechs, is as risky as it gets and is only appropriate for investors with maximum risk tolerance.
1 – https://finance.yahoo.com/news/positive-data-ulcerative-colitis-study-163005827.html