Acasti Pharma Inc (NASDAQ:ACST) (CVE:ACST) stock is on the rise, but it isn’t because a capital raise is in the works.
The biopharmaceutical company refuted the notion Thursday that any corporate developments were behind a recent uptick in both share price and trading volume.
Since July 17, its share price has jumped from US$1.37 to as high as $2.44, and its average trading volume is up to nearly 6 million compared to its three month average of 1.1 million.
One reason for the recent surge could be a series of analyst notes published in July. On July 18, Oppenheimer initiated coverage of the stock with a $7 price target, per StreetInsider, and analyst Gene Katx upped his price target to $11.06 on July 23.
One possible draw for investors is its omega-3 drug candidate CaPre, which is currently undergoing Phase 3 clinical trials. The Laval, Quebec-based company expects to reports from its TRILOGY 1 trial in December 2019 and its TRILOGY 2 trial in January 2020.
In a statement, Acasti reiterated that the company has enough funding to complete the trials of the drug. Of March 31, the company had $34.4 million in cash, cash equivalents and marketable securities on hand.
CaPre is designed to treat hypertriglyceridemia, a condition characterized by elevated triglyceride levels in the blood. Acasti plans to submit a New Drug Application to the US Food and Drug Administration in mid-2020.
Investors gave back some of Acasti's gains on Thursday, dropping the share price 9.8% to C$2.76 in Toronto and 10% to $2.10 on OTC Markets.
Contact Andrew Kessel at [email protected]
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