Pulmatrix Inc (NASDAQ:PULM)
Pulmatrix Inc (NASDAQ:PULM) stock gained 39.55% after the company announced it had received an award from the Cystic Fibrosis Foundation. The award is for the development of the company’s lead antifungal product PUR100, a novel treatment for allergic bronchopulmonary aspergillosis (ABPA).
The grant helped push Pulmatrix Inc (NASDAQ:PULM) up the charts after having come under immense selling pressure in the recent past. Since February, the stock has underperformed the overall market having slid from highs of $7 a share to lows of $1.60 a share.
Wednesday’s rally helped push the stock above a key resistance level awaiting to see if the momentum is strong enough to push it to the $3 a share mark. The new funding appears to have reinvigorated investor’s sentiments on the stock as it is poised to further strengthen the company’s pipeline of drugs.
“This award will help fund the nonclinical safety studies needed for the Phase 1/1B clinical trial that we plan to begin in 2018. It underscores the potential for PUR1900 to treat this serious condition, which is currently a major unmet medical need,” said CEO, Dr. Robert Clarke.
PUR1900 has already received an Orphan Drug designation and a Qualified Infectious Disease Product designation from the U.S. Food and Drug Administration (FDA) for the treatment of fungal infections. The two designations provide Pulmatrix Inc (NASDAQ:PULM) with up to 12 years of market exclusivity should the drug gain regulatory approval.
In addition to PUR1900, Pulmatrix Inc (NASDAQ:PULM) is also working on PUR1800, a novel treatment for acute exacerbations of Chronic Obstructive Pulmonary Disease (COPD). The candidate drug has already been tested in a multi dose proof-of principle trial in COPD patients.
Q2 Financial Report
Separately, Pulmatrix Inc (NASDAQ:PULM) stock reported a net loss of (-$5.6) million for the second quarter – down from a net loss of (-$9.2) million reported last year. The decrease was primarily due to a non-recurrence of 2016 write-off charges. The company did not generate any revenue in the quarter compared to $0.3 million reported last year. That is mainly due to the conclusion of a clinical study for the development of PUR0200.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.