2024-04-30 18:33:40 ET
Summary
- Agenus Inc. has experienced a recent recovery in its stock price, but it is still far from reaching its previous value.
- The company's pipeline includes several potential therapies for different forms of cancer, but its cash burn and poor balance sheet pose substantial risks.
- AGEN has previously claimed that it has sufficient cash runway until the end of 2024, but that was predicated on multiple asset sales that haven't yet materialized.
- I believe the run ahead of Q1 financials is an opportune time to sell into strength. AGEN's need to raise cash will not lead to a favorable outcome for shareholders.
Agenus Inc. ( AGEN ) has been in a bit of a recovery mode recently, more than doubling from its 52-week low below $5.00 made two weeks ago, immediately after a 1-for-20 reverse split. That recovery has been accelerating in the past couple of days, likely in response to positive developments with its colorectal cancer therapy, mixed in with hopes of the company closing in on non-dilutive sources of cash along with a bit of a short squeeze. Still, the share price has a long way to go before shareholders who bought in a year ago can be made whole. The company is scheduled to release its Q1 2024 financial and corporate update on May 7. I believe that it would be wise for investors to consider selling into this rally or avoid the stock and reassess its viability as an investment after the Q1 report is out....
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Time Is Running Out For Agenus To Raise Cash