Avenue Therapeutics, Inc. (ATXI), a specialty pharmaceutical company, has declined 5.29% in aftermarket trading session. Consequently, ATXI stock is trading at $1.61 at the time of the writing. The decline could be attributed to the profit-taking factor after the stock soared 53.15% during the regular trading session on Monday and closed the day at $1.70. The rise appears to be due to announcements regarding FDA advisory committee meetings.

Why ATXI Rallying?

On Monday, ATXI announced that it has been informed by FDA that a joint meeting of the Anesthetic and Analgesic Drug Products Advisory Committee and the Drug Safety and Risk Management Advisory Committee is scheduled for 22nd February 2022. The meeting would be held to discuss the IV tramadol New Drug Application. The FDA had also stated it before that the input from the advisory committee is required for the Office of New Drugs to decide on the company’s formal dispute resolution request. OND would respond within 30 days after the advisory committee meeting to the company’s appeal.

Q3 2021 Operational Results

On 15th November, ATXI released the operational results for the third quarter of the fiscal year 2021, which ended on 30th September 2021. The research and development expenses bore by the company during the period were $278,000 against $466,000 for the same period of 2020. The general and administrative expenses for the period were $594,000 against $1.03 million for the same period of 2020. The net loss suffered by the company during the period was $871,000 against $1.02 million for the same period of 2020. The net loss per basic and diluted share for the quarter was $0.05 against $0.06 for the same quarter of 2020.

Executive Commentary

Lucy Lu, M.D., President, Chief Executive Officer and Director of ATXI, while commenting on the results said that the company would continue to incur the research and development costs as it develops and looking out for the regulatory approval of IV Tramadol in the U.S. He hoped that the recent developments would cause a positive impact over the company’s performance in near future.

Future Outlook for ATXI

The last month has seen ATXI stock jump up by a steady 5%. Before that, the stock performance was abysmal throughout the last 12 month period. ATXI stock plunged 71% during the last 9 months. But the recent developments have stirred a positive movement for ATXI stock. It is hoped that it would continue to be the case in the long run for the company.