Shares of biotech company Hemogenyx Pharmaceuticals PLC (LON: HEMO) are down 37% this year, and it seems like the downtrend is set to continue; how far can they fall?
The biotech company’s shares have been on a downtrend since the start of the year despite making several positive announcements, such as choosing a CDX clone antibody from its partnership with a major global pharmaceutical company.
Hemogenyx completed the development work on the CDX antibody in mid-January this year.
Last time we covered Hemogenyx, we pointed out that its shares were falling because none of its therapies and drug candidates had entered pre-clinal studies, but this could change if the chosen CDX antibody starts preclinical studies.
The biotech company is in a strong financial position after signing a financing deal with Mint Capital giving it access to a £60 million fund that it can draw from when needed to fund operations.
The current decline could be attributed to investor apathy towards the company, but its prospects remain quite solid given its various collaborations that could yield viable drug candidates in future.
Hemogenyx signed a master transnational agreement with the University of Pennsylvania on January 5, 2021, to hold clinical trials for drugs developed to treat various cancers, which could yield positive results for the biotech company.
The firm’s shares are trading near a support level, and it will be interesting to see if the level will hold, triggering an uptrend.
Hemogenyx share price.
Hemogenyx shares are down 36.99% in 2021; how far can the shares fall in future?
