When Altimmune (NASDAQ:ALT) posted a poor COVID-19 immune response for its nasal spray, the stock plunged. The company announced it would exit the COVID vaccine market. This is a positive development, despite the stock dropping from $16 down to $9.34 as of last week.
ALT may turn its resources on the development of ALT-801 and HepTcell for treating obesity. It has plenty of cash (around $200 million) on the balance sheet. It will not need to sell the stock, diluting shareholders, to fund the clinical studies. Also, the market discounted the failure of AdCovid months ago. From here, any positive clinical data for GLP-1 and ALT-801 will help the stock.
Investors may consider speculating on ALT stock at these levels.
Arrow Pharmaceuticals (NASDAQ:ARWR) plunged by 25.7% last Friday when it paused its mid-study in Cystic Fibrosis. AROENaC1001 is an investigational RNAi therapeutic. In a study with rats, an ongoing chronic toxicology study indicated higher signals of lung inflammation.
ARWR has a deep pipeline, so the selloff looks overdone. Still, Ionis also scrapped its CF drug previously, due to unfavorable results from animal toxicity studies.
Your Takeaway
ALT immune is good speculation with the potential to rally again. Conversely, ARWR is a diversified firm whose drop wiped out 2021’s gains. Both are stocks that biotech investors should consider at these levels.