JANX - After Soaring 222% in 1 Day Is Janux Therapeutics Stock a Buy?
2024-03-02 06:56:00 ET
With shares of Janux Therapeutics (NASDAQ: JANX) exploding upward to a high of more than 222% above its prior closing price on Feb. 27, it is no great shock that many investors are wondering whether the stock is still worth buying. The market is interpreting the pre-revenue biotech's hot-off-the-press phase 1a clinical trial results as a massive victory. With such early data in hand, there's likely more upside on the way over the next few years as its programs mature -- or so the logic goes.
But one of the iron laws of drug development is that most attempts to develop a new medicine fail somewhere along the way, and this company still has a very long way to go before it has a chance to make even a dollar in sales. Risks will remain high for quite some time. So is this stock a buy, or is it still too risky to touch?
Before we discuss the clinical trial data responsible for the stock's blastoff, let's quickly put Janux in its proper context as a biotech stock by appreciating the technical advantages it could have.
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After Soaring 222% in 1 Day, Is Janux Therapeutics Stock a Buy?