Today, biotech company Aditxt (NASDAQ:ADTX) is absolutely soaring. Shares of ADTX stock are currently up more than 70% at the time of writing on extremely heavy volume. Nearly 150 million shares have traded hands, relative to an average daily volume of roughly 225,000 shares.
Accordingly, investors may not be surprised to learn that there’s a big catalyst driving this volume and interest in ADTX stock. Indeed, as a micro cap stock with a total market capitalization of $50 million after today’s rise, Aditxt is not necessarily a company many investors have heard of. However, this biotech innovation company has made headlines today.
Let’s dive into the key news that’s taking shares of ADTX stock into the stratosphere today.
ADTX Soaring on Acquisition News
Normally, when a company announced an acquisition, the acquirer’s stock price drops. This is typically a result of the premium paid for the target company, as investors attempt to re-price the enterprise values of both parties.
However, for micro cap companies like Aditxt, sometimes making a big splash can work in favor of investors. Such seems to be the case with Aditxt’s recently announced deal to acquire a biopharmaceutical company specializing in commercializing a Covid-19 antiviral oral therapy.
Today, Aditxt announced it had signed a letter of intent to acquire a company with an oral treatment for Covid-19. Given where we are with vaccinations, investors are looking for future iterations of treatments for the coronavirus. According to the release, the unnamed target company currently has authorization to sell its treatment under emergency and compassionate use. However, in markets outside of the U.S. and Canada, this company’s oral treatment is operating with full approval.
Indeed, this announcement is intriguing. Accordingly, investors have begun speculation on exactly who the target could be. For now, it appears investors banking on Aditxt’s pipeline of drugs have a commercialized drug in the pipeline to latch onto. For those concerned that the delta variant, and other potential future variants, will elongate the time horizon for needed treatments, ADTX stock may be one that makes the watch list moving forward.
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On the date of publication, Chris MacDonald 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.