Cleveland BioLabs, Inc. (NASDAQ:CBLI) isn’t joining the market’s retreat, with shares of the biopharmaceutical company’s stock climbing more than 40% in Wednesday’s trade. That puts CBLI stock at a three-day gain of nearly 230%.
It all started two days ago, when Cleveland BioLabs announced that its pediatric investigation plan (PIP) was accepted by the European Medicines Agency (EMA). In a nutshell, that means CBLI’s biodefense treatment, entolimod, is now on the fast track toward a Marketing Authorization Application (MAA).
Cleveland BioLabs CEO Yakov Kogan was jubilant:
“We are excited to have received a positive opinion from the EMA on our PIP. In addition, we have held a series of encouraging meetings with the EMA concerning our MAA submission. We look forward to continuing our discussions with the agency as we move forward with the MAA.”
If you’re a bull, you’re probably hoping this confirms your CBLI worldview. But make no mistake: Cleveland BioLabs remains an awfully speculative play, and entry points are key — those who jumped in at Monday’s high point lost more than 25% of their funds in a day.
Bottom Line on CBLI Stock
There’s good reason for that speculation. The market for acute radiation syndrome is, unfortunately, very large. North America is currently home to the largest market, followed by Europe and Asia-Pacific, but there is plenty of competition as well. Just a few of Cleveland BioLabs’ competitors include Osiris Therapeutics, Inc. (OTCMKTS:OSIR), Nanotherapeutics, Inc. and NeoStem, Inc., among several others.
But the bottom line is this: CBLI is a $5 stock with a $41 million market cap and no earnings, so it’s going to move. That movement can just as violently swing down as it can swing up, too, as witnessed this week.
That’s not something you want to just jump into unless you have money to lose.
John Kilhefner is the deputy managing editor of InvestorPlace.com. He does not hold a position in any of the aforementioned securities. Follow him on Twitter at @jkilhefner.
