HUGE - 24/7 Market News- Nasdaq Penny Stock Biotech Rally

2024-07-23 09:31:10 ET

DENVER, Colo., Jul 23, 2024 ( 247marketnews.com )- Russell 2000 ETF (NYSEAMERICAN:IWM), FSD Pharma (NASDAQ: HUGE ), MIRA Pharmaceuticals (NASDAQ: MIRA ), CareMax (NASDAQ: CMAX ), Azitra, Inc. (NYSE: AZTR ), and Adial Pharmaceuticals, Inc. (NASDAQ: ADIL )

From the “Trump trade” to potential rate cuts; whatever the reason for July’s small-caps rally created the Russell 2000 RUT index’s best two-week performance in nearly two years, hitting levels it hasn’t seen in even longer. Plus, last week the Russell 2000 small-cap stocks ETF (NYSEAMERICAN:IWM) hit its all-time call option volume record.

Since Biotechs are one of the most oversold sectors, we’re going to take a deeper look at several that are on our radar.

FSD Pharma (NASDAQ: HUGE ) is developing novel solutions for brain and inflammatory disorders, and is preparing to launch a revolutionary rapid alcohol detoxification drink this year.

A strong case can be made that the biggest reason FSD is oversold is likely due to its old management team and the time it takes to clean up a mess. However, FSD Pharma recently won a multimillion-dollar judgement against its the old management and is now focused on creating real shareholder value.

UNBUZZD™ helps to rapidly restore mental alertness post-alcohol consumption and FSD Pharma teamed up with the top industry vets to form Celly Nutrition, led by an all-star team that includes Gerry David, who headed Celsius (NASDAQ:CELH) energy drink company during its famous 35-fold increase in shareholder value, and legendary Shark Tank investor, Kevn Harrington, who helped develop the Celsius Influencer marketing program.

HUGE expects to receive a 7% royalty on UNBUZZD sales up to $250 million and then 3% from that point forward, with FSD retaining a 25% stake in Celly Nu until it reaches a $1 Billion market cap.

Additionally, FSD Pharma’s world-class pipeline includes Lucid-MS, a patented neuroprotective compound that demonstrated in preclinical models to prevent and reverse myelin degradation, a cause for Multiple Sclerosis, as well as other neurodegenerative diseases and conditions. Lucid-MS has shown excellent results in several animal models and completed the dosing of healthy human volunteers for phase-1 clinical trials.

MIRA Pharmaceuticals (NASDAQ: MIRA ) reported new Ketamir-2 preclinical study results, which MoBot, the 24/7 Market News free alert system caught at $1.061, Monday morning. The news continues a string of reported promising preclinical results in recent months for Ketamir-2, as MIRA works towards its goal of submitting an Investigational New Drug (IND) application to the U.S. Food and Drug Administration (FDA) by the end of 2024.

Erez Aminov, MRA’s Chairman and CEO, stated, “Our vision at MIRA is to transform the treatment landscape for neurological and neuropsychiatric disorders. Ketamir-2 shows great promise in addressing these debilitating conditions with improved efficacy and safety, offering new hope and better quality of life for patients and their families. Importantly, we are seeing a drumbeat of promising data this year that we hope will allow us to file an IND and begin to test our theories about Ketamir-2 in actual patients in the near term.”

Adial Pharmaceuticals, Inc. (NASDAQ: ADIL ) reported, this morning, that it’s  progressing to the second cohort in the pharmacokinetics study of AD04, following the successful completion of the first cohort of the Company’s lead investigational genetically targeted, serotonin-3 receptor antagonist, therapeutic agent for the treatment of Alcohol Use Disorder (AUD). Topline results from both cohorts are expected to be announced later this year.

Adial’s President and CEO, Cary Claiborne, stated, “We are pleased with the progress of our pharmacokinetics study of AD04. The successful completion of the first cohort allows us to advance to the second cohort as planned, staying on track with our projected timeline. The results from both cohorts will offer invaluable insights that are critical for the design of our upcoming Phase 3 Clinical Trial. We anticipate engaging with the FDA following receipt of the topline data from this study and seek their feedback on the overall design of our Phase 3 program.”

Azitra, Inc. (NYSE: AZTR ) stated, this morning, that the U.S. Patent and Trademark Office (USPTO) granted U.S. patent No. 12,036,248, covering future potential pipeline candidates for indications including atopic dermatitis, titled “Therapeutic treatment of skin disease with recombinant skin microorganisms. ”

Furthermore, Azitra was allowed additional new patents in the U.S., Canada, and China:

Azitra’s COO, co-founder, and patents inventor, Travis Whitfill, commented, “We are delighted to announce our second US patent issuance this year and three additional patent allowances in key markets in the U.S., Canada, and China. The indication addressed by the newly issued U.S. patent, atopic dermatitis, affects approximately 16.5 million people in the United States. There are numerous diseases associated with filaggrin deficiency, and the newly issued U.S. patent extends our protection to include a major market in the U.S., atopic dermatitis, particularly those with mild to moderate disease. Additionally, the new patent allowances in China and Canada extend our IP strength globally.”

The next two are biotech adjacent.

Despite not publishing an announcement since reporting its first quarter financial results in May, MoBot also alerted CareMax (NASDAQ: CMAX ) yesterday, which nearly doubled in an hour.

After reporting first quarter highlights include a 34% year-over-year revenue increase, to $232.2 million, Carlos de Solo, CareMax’s CEO, commented, “During the first quarter of 2024, we believe we began to see benefits from our fourth quarter clinical efforts which became fully implemented toward the end of last year.

“While absolute levels of utilization remained elevated, Medicare risk medical expense ratio in the first quarter of 2024 was favorable to our internal projections and improved compared to the prior two quarters, offset by acuity shifts in our Medicaid risk membership. We remain optimistic that these initiatives have the potential to improve our margins over time.”

“In addition, we continue to take steps described last quarter to maximize the value of certain assets and right-size the capital structure of our organization. As of the end of the first quarter, we had cash and equivalents of approximately $41 million and remain covered under the limited waiver of certain financial covenants in our credit facility. We have since taken further actions to preserve near-term liquidity and remain engaged with our lenders and financial advisors to evaluate strategic options for the company.”

MoBot alerted Inspire Veterinary Partners (NASDAQ: IVP ) on June 27 at $1.51 and multiple times since.

The big move followed Inspire Veterinary’s July 10 announcement that it closed a $6 million public offering at $1.00 per share for either one share of the Company’s Class A common stock or one pre-funded warrant to purchase one share of the Company’s Class A common stock and one warrant to purchase one share of the Company’s Class A common stock.

Inspire Veterinary Partners owns and/or operates veterinary hospitals in the US and expects to acquire additional veterinary hospitals, including general practice, mixed animal facilities, and critical and emergency care.

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