Penny stock Acasti Pharma (NASDAQ:ACST) is not messing around today. Shares of the pharmaceutical play are up more than 100%! But without any company news, what is behind the move in ACST stock? And what else do you need to know here?
Importantly, investors should be familiar with what Acasti Pharma is all about. Essentially, the company focuses on researching and developing cardiovascular drugs. Historically, it has worked to treat patients with hypertriglyceridemia. Investors should note that hypertriglyceridemia refers to elevated blood levels of triglycerides, a fatty molecule. This condition is a concern because it can predispose individuals to cardiovascular disease.
With that in mind, here is what you need to know about Acasti Pharma and ACST stock:
- To start, investors should recognize that ACST stock is truly in the world of penny stocks.
- Even after its 100% rally, shares are still at 50 cents each.
- However, Acasti Pharma has experienced great volatility. Its 52-week range goes from 17 cents to $2.75 a share.
- Acasti has been around since 2008 and calls Canada its home.
- Since its founding, the company has focused on cardiovascular treatments.
- With this in mind, Acasti Pharma has historically focused on lead candidate CaPre.
- The company touted CaPre as a potentially best-in-class drug for hypertriglyceridemia.
- Importantly, CaPre is derived from krill oil.
- Investors should note that this year has not been easy for Acasti. CaPre failed to meet trial milestones earlier in 2020.
- Because of this, Acasti announced it would not continue clinical trials for its lead candidate.
- Additionally, Acasti Pharma announced in September 2020 that it was pursuing strategic alternatives to maximize shareholder value.
- To do so, it has hired Oppenheimer as a financial advisor.
- Lastly, the company says it has cut staff, discontinued commercialization activity and paused research and development.
ACST Stock and the 100% Rally
So what should investors make of Acasti Pharma and ACST stock here? And why are shares staging such a massive rally without company news? Those questions are hard to answer.
There really is no denying that times are tough for Acasti. The company itself says it is in a rough spot — working to preserve cash and pave a new path forward for ACST stockholders. Without any research and development in progress, and without a lead candidate, it is hard to bet on Acasti. However, many investors may be hopeful that a strategic alternative, such as a merger, would value ACST stock at a premium. Additionally, with recent rallies in names like Ocugen (NASDAQ:OCGN) and Jaguar Health (NASDAQ:JAGX), biopharma sentiment is broadly bullish.
Perhaps the best bet here is to wait and see what a strategic alternative for ACST stock may be, or at least wait for more information on the rally today. Additionally, InvestorPlace analyst Louis Navellier gives shares an F in his Portfolio Grader.
Who knows what the future holds for ACST stock. One thing that is for sure is that the tiny company is captivating investors today.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.
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