One of the hottest stocks in the market today is Hoth Therapeutics (NASDAQ:HOTH). Indeed, HOTH stock has more than doubled on incredible volume today as investors price in a very significant catalyst.
Hoth Therapeutics is one of a few companies focusing on producing a drug targeting dementia related to Alzheimer’s disease. This company’s HT-ALZ drug candidate is one that’s gained relatively little attention of late, despite the recent U.S. Food and Drug Administration (FDA) approval of Aduhelm earlier this year.
Today’s move brings HOTH stock to its highest level in six months. This is a company that’s been on a rather steady decline downward, recently trading near 60 cents. Additionally, this is a stock that touched $3.50 last year, providing rather significant upside potential for those who think the biopharma company was fairly valued in the past.
Let’s dive into the specific announcement driving HOTH stock higher today.
HOTH Stock Surges on Positive Results for Key Drug
Today, Hoth Therapeutics announced some impressive results for its HT-ALZ therapeutic. These test results were generated via an “Alzheimer’s disease mouse model” and supported “the therapeutic potential of HT-ALZ.”
Alzheimer’s-related dementia is driven by amyloid B (AB) plaques in the brain. These lead to the clinical symptoms, including dementia, that many patients with Alzheimer’s experience. As a result of Hoth’s study, the concentration of AB in both males and females treated with HT-ALZ were significantly reduced, compared to animals that received the placebo.
Overall, these positive results are bullish for investors in HOTH stock. This micro-cap stock currently carries a valuation of less than $35 million, after today’s rise. However, should further research indicate this HT-ALZ drug is viable for commercialization, this is a longshot bet many investors may be willing to take.
Additional studies will likely be conducted in short order to measure other key factors. Today, investors appear to have a much more bullish outlook on what these studies will show, following today’s reported results.
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.
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