One of the more interesting movers in today’s market is life sciences company Revelation Biosciences (NASDAQ:REVB). After announcing positive pre-clinical data for the company’s treatment of chronic kidney disease, REVB stock has surged more than 70% in early afternoon trading.
Such a significant move indicates investors have found a lot to like in this report. Diving into this report, there are several items of note that investors should be viewing bullishly.
The company’s pre-clinical trial showed its REVTx-300 treatment “significantly reduced renal cortical fibrosis in a dose-dependent manner in the medium and high dose groups.” Accordingly, the company announced a Phase 1 trial would begin sometime in the first half of 2023. Additionally, future models of other fibrotic diseases are planned to begin by year-end.
The initial results from this animal-based study appear to show the kind of efficacy investors had hoped for. Additionally, the potential expansion of this treatment to other ailments could bode well for long-term investors.
Let’s dive into whether REVB stock is worth a buy at this new higher level.
Is REVB Stock Worth a Buy Following Today’s Rally?
Any one-day surge such as the one we’re seeing in Revelation is one that investors should view cautiously. Yes, there’s plenty to like about the results the company posted. However, such a rapid valuation expansion could be met with profit-taking in the near term. Thus, longer-term investors bullish on this company may want to wait a day or two for the dust to settle before jumping in with two feet.
That said, I do think there’s a lot to like about Revelation’s overall business model. Aside from this key drug, the company’s focus on immunological-based therapies and diagnostics in high-growth areas such as kidney disease could provide a profitable runway for growth. Thus, perhaps those with a very long-term time horizon would be well-suited to buy shares at or around these levels, even if there’s a near-term selloff.
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.
