What’s The Short Term Opportunity In This Pharmaceutical Company: Avenue Therapeutics Inc. (NASDAQ: ATXI )
Avenue Therapeutics Inc. (NASDAQ: ATXI) is a specialty pharmaceutical company that develops and markets pharmaceutical products for the acute care setting. It focuses on developing its product candidate, an intravenous (IV) formulation of tramadol HCI (IV Tramadol), for post-operative acute pain. Avenue is headquartered in New York City and was founded by Fortress Biotech, Inc.
Highlights:
Feb. 15, 2022: Avenue Therapeutics Announces Outcome of FDA Advisory Committee Meeting on IV Tramadol. Avenue Therapeutics said a Food and Drug Administration advisory panel voted that the company hadn’t submitted adequate information to support the position that the benefits of its intravenous tramadol for the management of post-operative pain outweigh the risks. Avenue received 8 votes in favor out of 20 however final decision was halted.
Dec. 15, 2021: Avenue Therapeutics announced the closing of its public offering of 1,910,100 shares of common stock at a public offering price of $1.07. The gross proceeds of the offering were approximately $2.0 million before deducting underwriting discounts, commissions and offering expenses. In addition, the Company has granted Aegis Capital Corp. a 45-day option to purchase up to an additional 286,430 shares of common stock to cover over-allotments, if any, at the public offering price, less the underwriting discount.
Trading Halt: The stock has been halted due to volatility trading pauses several times which might fire up the trading volume when trading resumes.
Technical Factors
Stock is trading close to its all-time low price ($0.25 USD) which is much below the support level of $1.25-1.30 USD. A positive news on IV Tramadol can give a quick upside to the stock.
Quick Look at the stock movement graph for Feb 2022.
High Volatility: Due to frequent press releases and news updates high volatility in trading volume has been observed this month. Quick look at trading volumes for Feb 2022.
| DATE | OPEN | HIGH | LOW | CLOSE | VOLUME |
| 2/24/2022 | 0.2 | 0.258 | 0.2 | 0.245 | 509,143 |
| 2/23/2022 | 0.23 | 0.2424 | 0.21 | 0.2151 | 372,743 |
| 2/22/2022 | 0.26 | 0.2629 | 0.2309 | 0.235 | 550,560 |
| 2/18/2022 | 0.29 | 0.2936 | 0.2501 | 0.263 | 726,368 |
| 2/17/2022 | 0.29 | 0.325 | 0.29 | 0.2946 | 1.42 M |
| 2/16/2022 | 0.32 | 0.39 | 0.29 | 0.313 | 6.31 M |
| 2/15/2022 | 0.61 | 0.61 | 0.61 | 0.61 | 3,556 |
| 2/14/2022 | 0.6185 | 0.6592 | 0.565 | 0.61 | 468,808 |
| 2/11/2022 | 0.6376 | 0.73 | 0.575 | 0.6196 | 414,088 |
| 2/10/2022 | 0.7101 | 0.7244 | 0.5308 | 0.5949 | 544,126 |
| 2/9/2022 | 0.75 | 0.755 | 0.6805 | 0.7101 | 279,954 |
| 2/8/2022 | 0.7397 | 0.7986 | 0.72 | 0.7305 | 108,622 |
| 2/7/2022 | 0.76 | 0.815 | 0.72 | 0.7221 | 142,935 |
| 2/4/2022 | 0.78 | 0.78 | 0.7156 | 0.7463 | 53,044 |
| 2/3/2022 | 0.7011 | 0.7537 | 0.7011 | 0.7434 | 80,232 |
| 2/2/2022 | 0.78 | 0.7971 | 0.723 | 0.7415 | 20,309 |
| 2/1/2022 | 0.8493 | 0.8493 | 0.706 | 0.773 | 202,818 |
Risk Factors: So far this year stock value has depreciated by over 75%, frequent volatility trading pauses & any further negative news on IV Tramadol can bring the stock prices down further.
Stock Recommendation: Analysts offering 12-month price forecasts for Avenue Therapeutics Inc have a median target of 6.00, with a high estimate of 9.00 and a low estimate of 5.00. Basis the current news events stock might see a spike and short-term gains can be expected.
MarketFacts gives a “Speculative Buy” rating on the stock at the closing Price of $0.25 USD as of Feb 24th, 2022.
| CMP (USD) (24th Feb 2022) | $0.25 |
| Target Price (USD) | $0.40 |
| Recommendation | Speculative Buy |
