A little known penny stock is turning heads on Wall Street today as it surges to impressive heights. Digital health company Akili Interactive Labs (NASDAQ:AKLI) stock is soaring after reporting a positive trial update.
Shionogi (OTCMKTS:SGIOY), Akili’s Japanese partner, has confirmed that it has submitted SDT-001 (sold as EndeavorRx in the U.S.), a digital therapeutic producer by Akili for marketing approval with Japan’s Ministry of Health, Labor, and Welfare. Described as “the world’s first prescription digital therapeutic for improving attentional functioning in pediatric ADHD patients aged 8 to 17,” this product has already received authorization from the U.S. Food and Drug Administration (FDA).
Now, the prospect of it entering a new market has caused AKLI stock to skyrocket by impressive margins. While still a penny stock, the company has demonstrated the type of growth that is impossible to ignore.
What’s Happening With AKLI Stock
How much has the previously unknown AKLI stock soared in just a few hours? As of this writing, it is up more than 110% for the day and isn’t showing signs of slowing down. After plunging in late September 2023, Akili has failed to demonstrate any real growth until today. However, in May 2023, it reported some progress regarding an ADHD treatment that sent shares up.
While this surge hasn’t quite taken AKLI stock back to its pre-September levels, it has certainly come close. If this growth continues, the stock could find itself back to trading above $1 per share. Akili’s leadership certainly seems optimistic that this development could help usher in a much-needed turnaround. Chief Medical Officer Dr. Scott Kollins issued the following statement:
“The latest Japanese clinical trial of our patented, clinically proven technology is an important milestone for many reasons. It not only further validates the efficacy and safety of EndeavorRx, it also moves us and our international partner SHIONOGI a step closer to making the product available in Japan. And if approved in Japan, it will provide an effective and safe option in a country where some front line pharmaceutical therapies are not as widely available to pediatric patients with ADHD.”
As the statement also highlights, Shionogi only submitted the drug for market approval after its Phase 3 clinical trial, aimed at evaluating “the efficacy and safety of SDT-001 in 164 pediatric ADHD patients aged 6 to 17 who received conventional treatments such as environmental adjustments and psychosocial therapies” demonstrated favorable results.
A Winning Streak… for Now
The fact that the U.S. version of the treatment has already received regulatory approval bodes well for both companies. If the Japanese Ministry of Health, Labor, and Welfare grants the company marketing approval, AKLI stock will likely continue to surge. Until a decision is reached, though, it is unclear for how long the company’s current winning streak will continue.
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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.
