Sunshine Biopharma (NASDAQ:SBFM) shares skyrocketed after announcing that two of its designed mRNA molecules effectively destroyed cancer cells grown in culture. SBFM stock opened at $6.22 at the start of trading, having closed at $2.26 on Monday as the company’s stock dropped.
The pharmaceutical company released an official statement to announce that it has tested two new mRNA molecules on multidrug-resistant breast, ovarian, and pancreatic cancer cells.
Sunshine Biothera’s new mRNA molecules can easily be delivered to patients through mRNA vaccine technology. The business anticipates patenting these new results soon.
SBFM stock is more popular with investors than ever before. It’s been one of the most-watched stocks this past year and has paid off in tremendous dividends. In early March, it gained over 160% in a single day as micro-cap investors targeted the stock due to its exposure to the biotech space.
Its volatility was again on display as the company’s stock dropped after they said they were raising $8 million in a dilutive private placement last month. The company will use the proceeds to finance research initiatives in anticancer, antiviral, and nutritional supplements to solve health issues.
Is SBFM A Good Stock to Buy?
SBFM is a biotech stock that has seen huge gains in recent weeks. This company is known for its high volatility, which means that it can see enormous gains and losses quickly.
Biotech stocks have been experiencing a bumpy year. The SPDR S&P Biotech ETF (NYSEARCA:XBI) has lost 17.24% in the year thus far. That volatility has made investors cautious heading into this year. However, there are many biotech companies that have the ability to provide enormous gains.
Canada-based pharmaceutical company Sunshine Biopharma is worth noting. It is working on several drugs for cancer and has an anti-coronavirus drug treatment as well. However, since most of its portfolio is still under development, updates on clinical trials can hugely impact the stock price.
It is best to invest a small amount in this stock. This is an early-stage company. So, it’s better for you and your portfolio if you don’t put too many eggs in one basket.
On the publication date, Faizan Farooque 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.