Clinical-stage biopharmaceutical firm Atossa Therapeutics (NASDAQ:ATOS) primarily focuses on two diseases: breast cancer and Covid-19. Hence, ATOS stock holders are supporting a company that’s potentially changing, and even saving, lives.
However, not everyone is concerned about Atossa’s clinical outcomes. Some folks are more interested in the stock’s moonshot potential, as the Reddit crowd has been known to target low-priced stocks.
ATOS stock fits that description, as its price is low — but it’s been moving higher, and that might be a source of concern for value-focused investors.
There’s no way to assuage all traders and investors, but at least we can acknowledge the scientific progress that Atossa’s made and the shareholder value that the company has to offer.
ATOS Stock at a Glance
First of all, some celebration is in order. That’s because Atossa Therapeutics is set to be included in not just one, but two important market indexes.
Not long ago, the company revealed that ATOS stock will be included in the Russell 2000 and the Russell 3000 indexes.
Collectively, approximately $10.6 trillion in assets are benchmarked against the U.S. Russell indexes. Fund managers take these indexes very seriously, so this event definitely represents an upgrade for Atossa Therapeutics.
It might also help to raise the share price, as the index inclusions could lead to massive inflows of capital into ATOS stock.
And by the way, this stock has shown excellent momentum lately. As recently as April 20, Atossa shares were priced near the $1.50 level.
By June 29, ATOS stock had climbed above $7. Without a doubt, the bulls are in charge, and trying to short sell the stock now would be a dangerous proposition.
More Than a Meme
I don’t blame short-term traders for reading up on the latest meme stocks. After all, it’s important to be aware of the big movers in the markets.
InvestorPlace contributor Chris MacDonald identified ATOS stock as a possible short-squeeze target among users of r/WallStreetBets and other investing subreddits.
The problem is, it’s not easy to anticipate which stocks will be targeted for a short squeeze, and when.
Instead of speculating on what might or might not happen, I invite you to consider the facts and the events that have already taken place.
For example, we can focus on Endoxifen, a drug that’s in development as a potential therapeutic for breast cancer patients as a pre-surgical tool.
Recently, Atossa released the long-anticipated final data from its Phase 2 clinical study of oral Endoxifen, administered in the “window of opportunity” between diagnosis of breast cancer and surgery. Thankfully, there’s great news to report. Endoxifen met its primary endpoint.
More specifically, Reduction in Ki-67 was achieved. A common measure of tumor cell activity, a “Ki-67 was reduced below 25% for all patients” in the study.
A Meaningful Outcome
This isn’t just big news for Atossa’s investors. It could also be a game changer for the patients.
The aforementioned result concerning Ki-67 can be considered clinically meaningful. This is because studies by other researchers have shown that a reduction below 25% improves long-term survival.
Moreover, that’s not the only encouraging news. Reportedly, Atossa Therapeutics has received approval from the Swedish Medical Product Agency to initiate a Phase 2 clinical study of oral Endoxifen for the reduction of mammographic breast density. This is a health issue that affects more than 10 million women in the U.S. and many more worldwide.
Atossa Therapeutics Chairman and CEO Steven Quay provided more detail, saying, “We now plan to commence the study as soon as restrictions for Covid-19 in Stockholm allow.”
As you can see, Atossa Therapeutics is pushing the envelope in advancing essential health science.
Can you buy ATOS stock simply for its potential as a meme stock? You can, but you can also choose to look at the scientific data. And the data suggests excellent outcomes for all of the stakeholders involved.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
David Moadel has provided compelling content – and crossed the occasional line – on behalf of Crush the Street, Market Realist, TalkMarkets, Finom Group, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.