Vistagen Therapeutics (NASDAQ:VTGN) stock is surging to impressive levels today on news of some positive trial results. The pharmaceutical producer has been struggling all year, dipping into penny stock status and coming dangerously close to the $1 per share mark. Today, however, brings an announcement that investors have been waiting for. Fasedienol — the company’s nasal spray to treat social anxiety — has demonstrated positive top-line results in a Phase 3 trial.
This development is likely to be a significant step for the company. As a result, VTGN stock has skyrocketed today, rising by more than 650%. Of course, this type of performance is hard to ignore.
What’s Happening With VTGN Stock?
When a company like Vistagen surges by such a large amount, it is realistic to expect that shares will dip later in the trading day. However, that doesn’t mean that investors shouldn’t be watching VTGN stock closely. The market is reacting extremely well to this news for a reason. As Fierce Biotech reports:
“The study, dubbed PALISADE-2, evaluated the efficacy, safety and tolerability of fasedienol—also called PH94B—a nasal spray designed to treat adults with social anxiety disorder (SAD). Fasedienol hit the trial’s primary endpoint, demonstrating a statistically significant improvement in the average score on a standardized distress scale during a public speaking challenge compared to placebo, according to data shared Aug. 7.”
This isn’t the only positive endpoint that the treatment has met, however. The outlet notes that fasedienol also demonstrated a “statistically significant change in clinician-determined improvement between fasedienol and placebo participants.”
While Vistagen stock’s performance up to now may not be encouraging, it’s clear that this name has potential. As InvestorPlace contributor Muslim Farooque reported in May 2022, the firm boasts a unique pipeline of treatments for nervous system-related issues like epilepsy, addiction and ADHD. This is an area with tremendous growth potential, expected to expand at a compound annual growth rate (CAGR) of 6.3% to $209.2 billion by 2030. Now, Vistagen has shown that it may play an important role as the field continues to grow.
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, Samuel O’Brient did not hold (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.
